Senate To Review ‘Archaic’ Revenue Sharing Formula

 

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The 8th Senate has described the present sharing formula of funds from the Federal Accounts Allocation Committee (FAAC) where the Federal Government receives 56 percent while state government and the local government councils get 24 and 20 percent respectively as archaic. The lawmakers will, therefore, carry out a holistic review of the process.

“The 8th Senate is poised to review the archaic existing arrangement. More so, Sections 313 and 315 of the 1999 Constitution call for the periodic review of the revenue sharing formula,” the upper chamber of the National Assembly noted as part of recommendations contained in the report of the Ad-hoc Committee on Legislative Agenda which has the Senate Leader, Senator Mohammed Ali Ndume as Chairman, with 17 other Senators as members.

The Senate also said it would henceforth look into how the funds for general ecological problems and that of the Development of National Resources were spent, stressing that the upper chamber was kept in the dark about the funds.

The committee was constituted by Senate President Bukola Saraki on Thursday, June 25, 2015 to, among others, develop an agenda that will be the compass for directing the activities of the 8th Senate.

According to the report, the Senate will review some of the existing acts relating to how government agencies like the Economic and Financial Crimes Commission, EFCC; Department of State Services, DSS; others operate.

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