Given the city’s importance in national development, Malam Muhammad Musa Bello, Minister of the Federal Capital Territory (FCT), has demanded for a new income sharing model that is fair and equitable.
He made the remarks during an advocacy and sensitization meeting in Abuja on the overhaul of the current revenue allocation structure.
According to Bello, the FCT requires a special income status in order to achieve its infrastructure goals.
The minister, who was represented by Malam Bashir Mohammed, Director of Human Resources Management, remarked that with an improved revenue formula, more quality projects will be completed.
According to him :”FCT needs special revenue package to carry out more projects that will have direct impact on the residents, there are ongoing projects that need chunk amount of money, so there is need for additional budget.
“In FCT, there are issues of compensation, abandoned and ongoing projects, so the present allocation is inadequate. We want a revenue formula that enhances the capacity to deliver high-quality services and dividends of democracy to Nigerians” he said.
He continued; the truth remains that the review of the current formula is long overdue, as the prosperity of a capital territory directly or indirectly has its multiplying effect on the entire country’s development.
In his address, the Commissioner that represents FCT at Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Tanko Abari lauded FCT minister for organizing the meeting.
He said RMAFC began the process of reviewing the subsisting vertical revenue allocation formula in line with changing realities as the last review was done in 1992.
He enjoined stakeholders to participate actively and effectively as the commission would take all views and recommendations into consideration.
In the current sharing arrangement, the federal government (including special funds) is entitled to 52.68 percent while state governments get 24.72 percent and LGAs receive 20.6 percent while FCT gets 1%.
Earlier in his opening remarks, the FCTA Permanent Secretary, Olusade Adesola said the current revenue sharing formula is long overdue for review.
Represented by the Director, Special Duties, Office of the Permanent Secretary, Mr Atang Udo Samuel said now that the process for the review has commenced , the FCT considers the call by the Revenue Mobilisation Allocation and Fiscal Commission for memoranda on the review of the revenue allocation formula as timely and proper.
He commend the commission for living up to its constitutional mandate in its effort to have a Revenue Allocation Formula that would reflect the current changing realities.