Osita Okechukwu, a founding member of the All Progressive Congress (APC), expressed support on Tuesday for the review of the current Revenue Allocation Formula, deeming it long overdue. He characterized the anticipated revision as a means to achieve “win-win balanced Federalism through fiscal restructuring,” especially as Nigeria revises its constitution. Okechukwu shared his views with the press following an announcement by Mohammed Bello Shehu, the chairman of the Revenue Mobilization, Allocation and Fiscal Commission (RMAFC), regarding plans for this review. The former Director General of Voice of Nigeria (VON) argued for a significant reduction of the federal government’s current revenue allocation from 52% to 40%, emphasizing that this change is essential for achieving true balanced federalism. He believes this adjustment would foster the betterment and development of citizens, ultimately bolstering grassroots democracy. Okechukwu noted that his observations over the years suggest that issues like political banditry, excessive nepotism, and tension during presidential elections in Nigeria stem from an imbalance in federalism. Unbalanced federalism is an unusual situation stemming from a fierce competition over control of the substantial Oil Revenue. “National cake” at the excessively centralized federal government. In this discussion, Okechukwu expressed full agreement with Shehu’s point that revising the vertical revenue-sharing formula, which outlines the distribution of federally collected revenues among federal, state, and local governments, is long overdue. He indicated that the existing formula, which has been in place for 33 years and allocates 52.68% to the Federal Government, 26.72% to States, 10% to Local Government Areas (LGAs), 4.8% to Special Funds, 1% to the Federal Capital Territory (FCT) and Ecological Fund, 1.68% to Natural Resources, and 0.5% to the Stabilization Fund, is detrimental to development and regressive. Okechukwu proposed a new distribution model to the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) based on current national security needs and changing socio-economic realities, suggesting a revised formula of 40% for the Federal Government, 40% for States, and 10% each for LGAs and other allocations. When questioned about reducing the LGAs’ share to 10%, he responded that efforts over the past 25 years to empower LGAs away from the control of powerful governors, including President Tinubu’s financial autonomy initiative which resulted in a Supreme Court ruling on July 11, 2024, have been unsuccessful, making it necessary to change tactics. Okechukwu noted that previous revenue allocation reviews have been contentious and influenced by politically motivated individuals posing as ethno-religious advocates. He urged divisive groups and polarization agents to recognize the reality that severe poverty, hunger, high unemployment, inequality, and insecurity continue to afflict all six geopolitical regions, including those who have governed Nigeria for over a decade. He called on President Tinubu, governors, national and state legislators, and other patriots to revitalize the Constitution towards creating a fairer and more balanced federal system, especially now as amendments are being considered.
