Charles Akinsete writes on the demand from stakeholders in government and private organisations for a review of the federal revenue allocation, arguing that it is the next necessary step towards creating a sustainable template for the growth and development of the nation.Now that the April elections have come andgone, the Nigerian polity appears to bereceiving a positive thrust, geared towards ensuring that the next democratic dispensation, which will officially take off on May 29, begins with a credible template to commence a socio-political revolution on the path of procuring the much desired and deserved dividends of democracy for the anxious people of Nigeria. To achieve this objective, one of the major issues, which have persistently recurred as cogent for socio-economic development of the nation, is the overbearing discourse of equity revenue allocation, a factor, according to some opinion experts, that should be critically considered, if at all the government is serious about achieving the Vision 20: 20-20.In the recent past, many critics have argued that Nigeria, which is a deeply plural and divided society, needs a more encompassing financial restructuring to cater for the needs of its citizens, rather than the present economic formula which has only entrenched the negative principle of robbing Peter to pay Paul. This, they said, would eventually be counter-productive and dysfunctional. Therefore, the clarion call should be a federal system with fiscal policy that can instil in the citizenry the sense of equity and fairness through a balanced revenue allocation.It is perhaps in view of this that, recently, state governors, led by Kwara State governor, Dr Bukola Saraki pushed for a new revenue formula which, according to them, would yield more funds to states and the local governments in order to meet up with the growing population and increasing socio-economic expectations of the electorate.In this vein, a committee, made up of the Nigerias Governors Forum (NGF), which was said to have included Governors Sullivan Chime of Enugu State, Murtala Nyako of Adamawa State, Babangida Aliyu of Niger State, Aliyu Wamakko of Sokoto State, Rotimi Amaechi of Rivers State, Gabriel Suswam of Benue State and Mr Babatunde Fashola, Lagos State governor, chairman, recommended a new revenue allocation formula, proposing that the Federal Government takes 35 per cent, instead of the whopping 52 per cent; the state government, 42 per cent, instead of the current 26.72 per cent, while the local governments should have 23 per cent, instead of the current 20.60 per cent.Citing the aggravating issue of minimum wage as a quintessential reason why the Federal Government needs to consider a review of the countrys revenue allocations, many governors expressed fear that the minimum wage demand might not be feasible simply because the states are short of cash and in a situation whereby they are compelled to pay, there may be little or no funds for state and community projects.According to Governor Fashola, the cause for the agitation of a new wage has to do with the daily diminishing purchasing power and value of the disposable income of the average worker, saying that there is need to adjust the economic variables that have diminished the economic power of workers, such as lack of public power supply, cost of production, cost of transportation, and so on, adding that without sound economic policies, a mere salary raise would only be a cosmetic approach to the problems.Governor Suswam, in his address to members of the Nigerian Labour Congress (NLC) at the IBB Square in Makurdi, stated that only an improved revenue sharing formula would make the implementation of the minimum wage possible, while Governor Kayode Fayemi of Ekiti State, who also spoke on the issue, called on the NLC to join forces with the governors in agitating for the restructuring of the revenue allocation formula, saying that Labours involvement for a more equitable sharing formula of the nations wealth would enable states to meet the demands of the people, especially as regards demand for increment in the minimum wage.Reacting to the governors statements, an expert on international economics and former Commissioner for Youths, Sports and Culture in old Oyo State, Dr Adeniyi Ayeni, while expressing his views, added that for the country to return to the path of stable economy and meet the needs of the people, the Federal Government should not hesitate to take the revenue allocation review seriously, saying it is perhaps the only way the masses would directly tap into the resources of the nation for socio-economic benefits.It is imperative for the Federal Government to revisit this issue with a sincerity of purpose because it is only when adequate resources are allocated to each tier of government, particularly local and state governments that, these governments existence, particularly from the point of view of their people, would be justified. For the Federal Government to grab most of the allocation has been and will, perhaps, continue to be less effective, if not counter-productive for the growth and development of the nation. VAT should be the exclusive reserve of every state and not the FG.In addition, the overlapping services that the Federal Government engages in should be reduced, and it should only be saddled with the ministries of internal affairs and defense. The states, as far as I am concerned, would be in a better position to take charge of other services, which should actually have a direct bearing on the lives of the people. Anything short of this will not augur well for the development of the new political system, he argued.Debunking the allegation that the Federal Governments 52 per cent allocation remained justified based on the management of public facilities such as the Nigerian Telecommunications Limited (NITEL), Power Holding Company of Nigeria (PHCN), Nigerian Ports Authority (NPA), Nigerian National Shipping Line (NNSL), National Insurance Corporation of Nigeria, among others, Governor Fashola said that this argument was no longer tenable due to the fact that many of these public facilities had already been sold or privatised.Part of the justification for that huge percentage to the Federal Government was its management of many public facilities, like NITEL, PHCN, Bacita, Nigerian Aviation Handling Company, National Fertilizer Company of Nigeria, and other agencies. Now that the Federal Government has privatised or sold these agencies, and expressed its clear desire to engage private capital to do more, the case for keeping that large chunk of the Federations Account is obviously no longer tenable or meritorious, he said.Indeed, that the Federal Government has exclusive power and control over various levels of taxation - import duties, export duties, excise taxes, income taxes, among others, should ordinarily translates to more performance on its part in satisfying, at least, the basic needs of the people.But over the years, this has been a far cry from the reality on ground. On the contrary, the state governments and local governments, for the fact that they are closer to the people, receive the bulk of societal demand. This essentially suggests a disproportionate scenario where although the Federal Government collects most of the taxes, the regional governments do most of the spending.However, some people have expressed doubt over the demand of the governors, saying that although the issue of reviewing the revenue allocation remains unarguable, bearing in mind the years of socio-economic retrogression, it does not suggest that the state governments would live up to the expectations of the masses.According to a top government official, who insists on anonymity, although the governors might, indeed, have a point, the issue of corruption and mismanagement of funds cannot essentially be ruled out, saying that even with the resources allocated to some states, there had been reported cases of corruption and mismanagement of public funds.He emphasised that there must be stringent laws and governmental approaches in order to curtail the excesses of both local and state governments in the unjust dissipation of public funds.As far as I am concerned, reviewing the allocation would not essentially translate to victory for the masses, even for the members of the Nigerian Labour Congress (NLC). Quite a number of our leaders, across the three tiers of government, are truly sincere, and are ready to work for the benefit of the masses. I dont need to mention names. Their works speak for them. But on the other hand, increasing the revenue allocation of some states would only bloat the pockets of some few people, much to the detriment of the masses. So, credible policies should go alongside increment of funds for respective states.Prince Kehinde Thompson, a prominent Nigerian in diaspora, also added that there must be criteria for each state to qualify for the increase, saying that this increment could not just be automatic.It is true that the states are not getting anything tangible, but there should be a performance indicator for each state. A committee should be set up to check the performance level of each state, and also check the level of development for such state to qualify for the increment. It will not be ideal for the revenue to be used for white elephant or used to pay debts. The revenue should be used strictly for the development of each state and benefits of its citizens, he said.
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