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North central zone stakeholders propose 35% revenue allocation to states

Published

4 years ago

October 22, 2021

Want FG to have 39%, LGs 26%

Majority of the states in the North central zone have proposed a 39: 35: 26 per cent revenue sharing formula for the federal, state and local governments respectively.

The states made their positions known at a one-day North Central Zonal public hearing on the review of the current Revenue Allocation Formula (RAF), organised on Thursday by the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), at Government House, Lokoja.

In his remarks, Gov. Yahaya Bello of Kogi, advocated a sharing formula of 39, 35 and 26 per cent between the Federal, States and Local Governments, respectively, in order to effect the desired development of the country.

Bello, who was represented by his Deputy, Edward Onoja, stated that the main objectives of revenue allocation was to promote national unity and accelerate the economic growth of all tiers of government.

He lamented that the current formula in use had failed to achieve the desired aspirations of the citizens for development.

“We can no longer deny that a comprehensive review of RAF currently in use in Nigeria had become overdue.

”Currently, the Federal Government takes 52.68 per cent, the 36 states and the FCT split 26.72 percent and the local government councils make do with 20.60 per cent.

“The nine oil producing states receive an additional 13 per cent as derivation revenue which is distributed among them depending on the actual contribution of each to crude oil receipts.

“Existential realities between the three tiers of government today necessitate a more equitable sharing plan for all revenues accruing into the federation account,” Bello said.

He, therefore, urged the review committee to take a critical look at the revenue allocation formula currently in use with a view to do the needful in the interest of Nigerians.

The News Agency of Nigeria (NAN) reports that the representative of Plateau state proposed a 40, 35 and 25 per cent formula, while Nasarawa state advocated 44, 35 and 21 for the three tiers of government, respectively.

Also speaking, the Commissioner for Land, Survey and Solid Minerals, Mr Bernard Unenge, who made the presentation on behalf of the Benue state government, advocated 30, 45, and 25 per cent for federal, states and local governments, respectively.

On her part, the Kwara State Commissioner for Finance, Mrs Florence Oyeyemi, in a virtual presentation, advocated a 33, 30 and 27 per cent sharing formula, respectively.

Dr Joel Akowe, on behalf of the Academia, proposed 30, 35 and 20 per cent respectively, while proposing a 15 per cent allocation to a Special Fund.

The Representative of the Network of Kogi state Non Governmental Organisations (KONGONET), Mr Muraina Idris, proposed 40, 27 and 33 per cent respectively, as he argued that this formula would enable the federating units and constituents to receive more attention in terms of development.

He added that over the years, the state governments had not really shown the need for increased resources as the community of civil society feels that a huge gap had existed between resource allocation and development, across majority of the federating units.

Idris further said that their proposed allocation of 33 per cent to local governments, would reduce rural-urban migration, create employment, promote development in rural areas and improve security.

For the Vice President, National Council of Women Societies (NCWS), Kogi branch, representing women, the three tiers of government should receive allocations in the ratio of 30, 34 and 23 respectively, but that the 13 per cent derivation for oil producing states be retained.

Mr Victor Ibrahim, who spoke on behalf of the Kogi Chamber of Commerce, Industry, Mines, and Agriculture (KOCCIMA), proposed 36, 33 and 26 per cent revenue formula, but on the condition Nigeria would practice true federalism.

Ibrahim said this had become necessary because the nation had been engaged in a unitary system of government, which had hindered development at the grassroots.

Mr Yahaya Ibrahim, the National Chairman, Persons Leaving With Disabilities (PLWDs), proposed 39, 29 and 32 per cent for the three tiers of government, respectively.

He specifically appealed to the Federal Government to however support the Kogi government, in its bid to empower the PLWD in the state.

The chairman cited Gov. Yahaya Bello for commendation, for according PLWDs in the state priority in terms of inclusiveness in governance, empowerment, among others.

Earlier, in his address of welcome, the Chairman of RMAFC, Elias Mbam, said the commission had been empowered by the Constitution to review, from time to time, the RAF and principles in operation to ensure conformity with changing realities.

This was by virtue of Paragraph 32(b), Part 1 of the Third Schedule to the 1999 Constitution of the Federal Republic of Nigeria (As Amended), he said.

The chairman disclosed that for the review, additional relevant data had been collected from relevant government agencies, and studies on fiscal matters relating to revenue allocation had also been undertaken.

He said that the public hearing was the fourth in the series, as the commission had earlier undertaken similar exercises in the South-West, South-South and South-East Zones.

Mban said plans had also been concluded to conduct the hearing in the remaining two geo-political zones of the North-West and North-East.

He said, “I wish to use this opportunity to invite all Nigerians to please participate and make contributions to this review process.

“It is our belief that your contributions will certainty enrich the process and ensure that the new revenue allocation formula reflects the wishes and aspirations of Nigerians.”

News

BREAKING: Tinubu Allegedly Shakes Up Cabinet, Removes Wale Edun, Ahmed Dangiwa

Published

4 hours ago

April 21, 2026

Trends Admin

Wale Edun

BREAKING: Tinubu Allegedly Shakes Up Cabinet, Removes Wale Edun, Ahmed Dangiwa

President Bola Ahmed Tinubu has reportedly approved a minor cabinet reshuffle involving key changes in the Federal Executive Council (FEC), including the removal of the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, alongside the Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa.

The development was said to have been contained in a memo signed by the Secretary to the Government of the Federation (SGF), Senator George Akume, directing immediate transition processes across the affected ministries.

Wale Edun, Dangiwa Relieved of Ministerial Duties

According to the reported directive, Wale Edun has been asked to hand over duties at the Ministry of Finance and Coordinating Minister of the Economy. Similarly, Arc. Ahmed Musa Dangiwa is to vacate his position as Minister of Housing and Urban Development.

Succession Arrangements and Ministerial Changes

The document further stated that Mr. Taiwo Oyedele has been named as the incoming Minister of Finance and Coordinating Minister of the Economy, following Edun’s exit.

In the housing ministry, Dr. Muttaqha Rabe Darma has reportedly been nominated as Minister-designate for the Ministry of Housing and Urban Development, pending formal confirmation procedures. Until then, Dangiwa has been directed to hand over to the Minister of State within the ministry.

Presidency Explains Reason for Reshuffle

Explaining the development, SGF George Akume was quoted as saying the changes are aimed at improving cohesion, synergy in governance, and economic delivery under the administration’s Renewed Hope Agenda.

He added that President Tinubu acted within his constitutional powers under Sections 147 and 148 of the 1999 Constitution (as amended), emphasizing that cabinet adjustments remain part of ongoing efforts to improve governance efficiency.

Presidential Appreciation and Next Steps

The memo also reportedly conveyed President Tinubu’s appreciation to outgoing ministers for their service to the nation, while wishing them success in their future engagements. It further indicated that the President assured Nigerians and cabinet members that government reinvigoration efforts will continue periodically.

BREAKING: Tinubu Allegedly Shakes Up Cabinet, Removes Wale Edun, Ahmed Dangiwa

News

Power Firm to Hold Virtual Stakeholder Meeting on Rainy Season Electrical Safety

Published

6 hours ago

April 21, 2026

Trends Admin

Power Firm to Hold Virtual Stakeholder Meeting on Rainy Season Electrical Safety

A power distribution company has announced plans to hold its April Virtual Stakeholder Engagement aimed at educating customers on safety measures during the rainy season.

In a notice issued to customers, the company said the virtual session would focus on the dangers associated with exposed electrical wires, flooded installations, and the increased risk of electric shock that often accompanies heavy rainfall.

The engagement, scheduled for Thursday, April 23, 2026, from 11:00 a.m. to 1:00 p.m., will be held via Microsoft Teams, allowing participants to join remotely.

According to the company, the initiative is part of efforts to promote public safety and reduce electricity-related accidents during the rainy season, when infrastructure is more vulnerable and risks are heightened.

Power Firm to Hold Virtual Stakeholder Meeting on Rainy Season Electrical Safety

News

NERC: Only 15 States Fully Regulating Electricity Markets Under New Law

Published

12 hours ago

April 21, 2026

Trends Admin

Nigerian Electricity Regulatory Commission (NERC)

NERC: Only 15 States Fully Regulating Electricity Markets Under New Law

Twenty-one states, including Rivers State and Kano State, have yet to assume full regulatory control of their electricity markets nearly three years after the enactment of the Electricity Act 2023, even as 15 states have successfully transitioned to independent electricity regulation under Nigeria’s decentralised power framework.

The Nigerian Electricity Regulatory Commission (NERC) confirmed that the 15 states that have completed the transition now operate their own electricity markets, handling tariff regulation, licensing, investment promotion, and consumer protection within their jurisdictions.

The reform is part of the broader implementation of the Electricity Act 2023, which decentralises Nigeria’s power sector by empowering states to regulate generation, transmission, and distribution within their territories after meeting legal and institutional requirements.

15 states now operating independent electricity markets

According to NERC, 15 states have fully completed the transition process and are now independently regulating their electricity sectors. These states include Enugu, Ekiti, Ondo, Imo, Oyo, Edo, Kogi, Lagos, Ogun, Niger, Plateau, Abia, Nasarawa, Anambra, and Bayelsa.

The commission explained that the transition began in October 2024 with Enugu and Ekiti, followed shortly by Ondo. The process gained momentum in 2025, with states such as Lagos, Oyo, Ogun, and Edo completing their transitions. More recent entries include Nasarawa, Anambra, and Bayelsa in early 2026.

Under the new structure, these states now oversee intrastate electricity regulation, including issuing licenses, enforcing technical standards, setting local tariffs, and protecting electricity consumers.

21 states yet to complete transition

However, 21 states are yet to complete the process of taking over regulatory control of their electricity markets. These include Adamawa, Akwa Ibom, Bauchi, Benue, Borno, Cross River, Delta, Ebonyi, Gombe, Jigawa, Kaduna, Kano, Katsina, Kebbi, Kwara, Osun, Rivers, Sokoto, Taraba, Yobe, and Zamfara.

Energy experts say the delay could slow down the expected benefits of the Nigeria electricity sector reform, including improved power supply, localised tariff structures, and increased investment in mini-grids and embedded generation projects.

They also warn that uneven implementation could widen disparities in electricity access and investment across states.

What the Electricity Act 2023 provides

Under the Electricity Act 2023, once a state completes its transition, it establishes its own electricity regulatory commission responsible for overseeing all intra-state electricity operations.

The national regulator, NERC, retains oversight of interstate electricity trade and the national grid system.

State regulators are expected to drive local electricity market development by encouraging private investment, supporting renewable energy projects, and ensuring service quality standards across distribution networks.

However, NERC noted that some states that have declared transition still need to fully operationalise their regulatory institutions.

Federal government push for decentralisation

The Federal Government has repeatedly encouraged states to accelerate adoption of the reform, describing decentralisation as essential to solving Nigeria’s long-standing electricity challenges.

Minister of Power, Adebayo Adelabu, said Nigeria’s size and population make centralised electricity management ineffective.

He explained that the Electricity Act allows states to participate in all segments of the power sector value chain, including generation, transmission, distribution, and supporting services.

Adelabu also stressed the importance of collaboration between federal and state regulators to ensure alignment between wholesale and retail electricity markets.

He added that state participation is especially critical in off-grid electrification and rural power projects, where flexible local regulation can improve access and attract investment.

Outlook for Nigeria’s power reform

Stakeholders say the success of Nigeria’s electricity decentralisation reform will depend on how quickly the remaining 21 states establish functional regulatory frameworks and fully activate their electricity markets.

They warn that delays may limit investment inflows and slow down efforts to improve electricity supply reliability across the country.

Despite the uneven progress, the Electricity Act 2023 remains one of the most significant structural reforms in Nigeria’s power sector, aimed at creating a more competitive and efficient electricity market.

NERC: Only 15 States Fully Regulating Electricity Markets Under New Law