The federal government has proposed a 3.13 percent increase in revenue allocation to local government. Secretary to Government of the Federation, Boss Mustapha gave the indication at a town hall meeting Organised by the Revenue Mobilisation and Fiscal Commission in Abuja. Explaining that the proposal will reduce the federal government allocation by 2.03 percent with States losing 1.1 percent in favour of the local government, Mustapha said the gesture is targeted at increasing development in the rural Areas. Represented by the permanent secretary political and economic, Andrew Adejoh, the SGF who insisted that the proposal was informed by need to increase visibility of sub national level responsibilities in addressing key challenges in the country, however restated the present administration commitment to implement whatever formula that is passed by the National Assembly. The minister of the Federal Capital Territory FCT, Bello Mohammed in his remarks advocated for more funding of the capital territory inview of it’s massive development needs. Earlier, the chairman of RMAC, Mbah Elias said the commission is working on a formula that would be tied directly on the responsibility of each tier of government. Track up In the new proposed revenue formula, the Federal government was peg at 50.65 percent, with 25.62 percent and 23.73 percent for states and Local Government respectively and derivation allocation tied at 13 percent.
