RMAFC presents new revenue sharing proposal to Buhari – Newstrends
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RMAFC presents new revenue sharing proposal to Buhari

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3 years ago

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  • FG to get 45%, states 29.7%, LGs 21.04

President Muhammadu Buhari has received a report on the review of the vertical revenue allocation formula from the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC).
The report proposes a sharing formula of 45.17 per cent for the FG, 29.79 per cent for state governments and 21.04 per cent for the local governments.
Under the current sharing arrangement, the federal government takes 52.68 percent of the revenue shared, states get 26.72 percent while local governments get 20.60 per cent.
The development is coming on the heels of the review of the current revenue sharing formula by RMAFC, which commenced in June, last year.
According to a statement by Femi Adesina, presidential spokesperson on Thursday, Buhari said he will await the final outcome of the constitutional review process before presenting the report to the national assembly.
‘‘Ordinarily, I would have gone ahead to table this report before the National Assembly as a Bill for enactment,” Buhari said.
‘‘However, since the review of the vertical revenue allocation formula is a function of the roles and responsibilities of the different tiers of government, I will await the final outcome of the constitutional review process, especially as some of the proposed amendments would have a bearing on the recommendations contained herein.”
Buhari outlined some of the recommendations in the report as the “establishing local government as a tier of government and the associated abrogation of the state/local government account; moving airports; fingerprints, identification and criminal records from the exclusive legislative list to the concurrent legislative list, empowering the RMAFC to enforce compliance with remittance of accruals into and disbursement of revenue from the Federation Account as well as streamlining the procedure for reviewing the revenue allocation formula.’’
The President assured members of the commission that the FG would immediately subject the report to its internal review and approval processes, while awaiting finalisation of the efforts by the national assembly.
The President said, this strategy, rather than issuing an Executive Modification Order, as was done in 1992, was more in line with entrenching the democratic tenets.
“I am aware that the present revenue allocation formula has not been reviewed since the last exercise carried out in 1992,” he said.
‘‘Considering the changing dynamics of our political-economy, such as Privatisation, Deregulation, funding arrangement of Primary Education, Primary Health Care and the growing clamour for decentralisation among others; it is necessary that we take another look at our Revenue Sharing Formula, especially the vertical aspects that relate to the tiers of government.
‘‘This becomes more compelling as we need to reduce our infrastructural deficit, make more resources available for tackling insecurity, confront climate change and its associated global warming and make life more meaningful for our rapid growing population.’’
According to him, equitable distribution has always been observed in the sharing of national resources.
“‘I want to let you all know that I have keenly followed most of the discussions held in the geo-political consultative process and one thing that struck me clearly was the agreement that a review of our vertical revenue formula cannot and should not be an emotional or sentimental discussion and it cannot be done arbitrarily,” Buhari said.
‘‘All over the world, revenue and resource allocation have always been a function of the level of responsibilities attached to the different components or tiers of government.
‘‘I am, therefore, happy to note that the discussions were held along these lines and rested squarely on roles and responsibilities as spelt out in the 1999 Constitution (as amended).
‘‘However, I also note that in reaching the final decisions at most of these engagements, not much emphasis was placed on the fact that the Second Schedule of the Nigerian constitution contains Sixty Eight (68) items on the Exclusive Legislative List and the remaining Thirty (30) items on the Concurrent List requiring both the Federal and State Government to address.”
Buhari said for the nation to have a lasting review of the present revenue allocation formula, there must first be an agreement in the responsibilities of all the tiers of hovernment.
He noted that the proposal seeks a 3.33 percent reduction in the current federal government allocation and on the other hand an increase of 3.07 percent and 4.4 percent for the states and local governments.
He added that with regard to special funds, the report by the RMAFC proposed an increase of two percent for the Federal Capital Territory (FCT) and a decrease of 38 per cent for development of natural resources.
The President said the FG also made its input into the process of reviewing the vertical revenue allocation formula.
He said this was based on existing constitutional provisions for roles and responsibilities for the different tiers of government.
“We must note the increasing visibility in sub-national level responsibilities due to weaknesses at that level. For example: Primary Health Care; Basic Primary Education; Levels of insecurity, and; Increased remittances to state and local governments through the Value Added Tax sharing formula, where the Federal Government has only 15 per cent and the states and local governments share 50% and 35% respectively,’’ he added.
The chairman of RMAFC, Elias Mbam, said the proposed vertical revenue allocation formula advised 45.17 percent for the FG, 29.79 percent for state governments and 21.04 per cent for the local governments.
Under special funds, he said, the report by the commission recommended 1.0 percent for ecology, 0.5 percent for stabilisation, 1.3 percent for development of natural resources and 1.2 percent for the FCT.
Mbam said there was wide consultation with major stakeholders, public hearing in all the geo-political zones, administering of questionnaires and studying of some other federations with similar fiscal arrangements like Nigeria to draw useful lessons from their experiences.
According to the RMAFC chairman, the commission also visited all the 36 states and the FCT, the 774 local government areas to sensitize and obtain inputs from stakeholders.
He said literature reviews were conducted on revenue allocation formula in Nigeria dating back to the pre-independence period.
He added the commission received memoranda from the public sectors, individuals and private institutions across the country.
Mbam said since the last review was conducted in 1992, the political structure of the country had changed with the creation of six additional states in 1996, which brought the number of states to 36.
He said the number of local governments also increased from 589 to 774.

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Ex-Twitter CEO Jack Dorsey locked out of X account

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14 hours ago

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March 13, 2025

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Ex-Twitter CEO Jack Dorsey locked out of X account

Jack Dorsey, the co-founder and former CEO of Twitter, has reportedly been locked out of his account on X, the social media platform that succeeded Twitter under Elon Musk’s ownership.

The news broke on Wednesday night, when Dorsey posted about the issue on Primal, an alternative social media network, stating that his X account had been restricted with an 11-hour lockout period remaining as of that date.

“We have determined that you have violated the X rules, so you’ll need to wait some time before using X again.

“You’ll be able to unlock your account in: 11 hours and 3 minutes,” Jack shared on Primal.

Dorsey’s lockout has caused numerous speculations among X users, though the platform has provided no official explanation.

Dorsey, who stepped down as Twitter’s CEO in 2021, has remained an influential figure in the tech world. His unexpected account restriction has raised eyebrows, particularly given his foundational role in building the platform that X evolved from.

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Posts on X reflect a mix of reactions, ranging from humorous takes suggesting karmic irony—given Dorsey’s tenure overseeing Twitter’s content moderation policies—to questions about whether the lockout stems from a technical glitch or a deliberate action under Musk’s leadership.

Dorsey’s most recent activity on X included retweeting links to external content, but none of those posts appear to clarify the reason behind the restriction.

Reacting X user Patriot Lady @angelwoman501 tweeted, “Jack Dorsey, former CEO of Twitter, has been locked out of his X.

“How does it feel, Jack? We will never forget how you were taking millions from Joe Biden to cancel conservatives. Were you on the USAID payroll as well? Jack, you look terrible.”

Another user, Oli London @olilondontv, reacted, saying, “Under Dorsey’s Twitter leadership, thousands of conservatives had their accounts suspended.”

An X account Tiffany Fong @tiffanyfong_ took a lighter tack: “Jack Dorsey, former CEO of Twitter, has been thrown in 𝕏 jail 🤣.”

Western Decline @westerndecline_ replied to a tweet by Dogedesigner, “For all the accounts that were wrongfully suspended while he was the CEO of Twitter… I don’t feel an ounce of sympathy for the guy.”

As of now, X has not released a statement addressing the situation. Dorsey, who also co-founded Block Inc., has yet to provide further updates on the matter via Primal or other channels.

Ex-Twitter CEO Jack Dorsey locked out of X account

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Petrol import rose by 105.3% in 2024 – NBS

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2 days ago

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March 12, 2025

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Petrol import rose by 105.3% in 2024 – NBS

Petrol imports surged by 105.3 per cent, reaching N15.42 trillion in 2024, from the N7.51 trillion recorded in 2023. This was contained in the latest data on foreign trade statistics released by the National Bureau of Statistics (NBS), yesterday. The development comes despite current increasing domestic refining capacity, and the ongoing rehabilitation of state-owned refineries.

Previously, the country had spent N2.01trillion on fuel imports in 2020; in 2021, this figure more rose to N4.56 trillion, or 126.9 per cent; N7.71 trillion or 69.1 per cent in 2022, before recording a marginal decline of 2.6 per cent to N7.51 trillion in 2023.

However, riding on the back of a 40.9 per cent depreciation of the naira, in 2024, the import a 105.3 per cent increase to N15.42 trillion, the highest on record.

Despite the rise in local refining, production remains insufficient in meeting demands, necessitating continuous dependence on importation.

Supply chain inefficiencies, and persistent demand-supply imbalances, foreign exchange fluctuations, among other factors, have also militated against meeting local demands, as the rising cost of petrol imports continues to strain government finances and consumer purchasing power.

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In December 2024, the Nigeria National Petroleum Company Limited (NNPCL) announced the restart of the 125,000 barrels per day (bpd) Warri Refinery and Petrochemical Company (WRPC), which was approved for rehabilitation in 2021 for $897 million.

The Port Harcourt Refining Company (PHRC), with a total installed capacity of 210,000bpd, recently restarted operations at its old plant, which currently produces 60,000bpd.

The Major Energies Marketers Association of Nigeria (MEMAN), may have thrown its weight behind continued importation on the grounds that it fosters competition and potentially stabilising prices.

The Executive Secretary, MEMAN, Clement Isong, said: “What importation does for us is that it contributes to the market competitiveness. The price movements you are enjoying and the market competition are the result of importation. Importation is useful.”

He nonetheless clarified that the Association is not against local refining, and desires it as well, but “what ensures that we have the most competitive price is that locally refined fuel prices have to compete with imported prices. That is what keeps our prices at the pump as low as possible,” he asserted.

 

Petrol import rose by 105.3% in 2024 – NBS

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High expectations as petrol price may drop to N800/litre

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2 days ago

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March 12, 2025

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High expectations as petrol price may drop to N800/litre

The downstream oil sector in Nigeria is witnessing intensified competition as major oil marketers slash prices, challenging the N825 per litre gantry loading cost set by the Dangote Petroleum Refinery.

This move follows revelations by industry players that the landing cost of imported Premium Motor Spirit (PMS) has dropped to N774.72 per litre, reflecting a N50.28 reduction from Dangote’s loading price. The landing cost factors in expenses such as shipping, import duties, and exchange rates, contributing to the overall decline.

Dealers suggest that the ongoing price drop could soon lead to a reduction in pump prices to around N800 per litre, offering some relief to consumers already grappling with high fuel costs.

The situation, according to industry stakeholders, has ignited a price war, with retail marketers now opting to dump the refinery products for imported products on the basis of lower pricing.

Findings by this newspaper also revealed that this decrease in landing cost is expected to influence the price at which petrol is sold to consumers and could increase marketers’ interest in returning to petrol imports.

“Crude oil is a major component in the production of fuel, so a further reduction in its price would definitely warrant a drop in petrol price, and it is possible to drop to N800 per litre,” the National Publicity Secretary of the Independent Marketers Association of Nigeria, Chief Ukadike Chinedu, stated.

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Recall that last Monday, NNPC dropped its retail petrol price to N860 and N880 per litre from N945 and N965 in Lagos and Abuja, respectively.

NNPC’s petrol price drop followed Dangote refinery’s retail fuel price reduction to N860 and N880 per litre across its retail partners.

The refinery, in its second price reduction in the new year and the third one in a space of two months, reduced its ex-depot petrol price from N890 to N825 per litre to the delight of Nigerians.

But the reduction by NNPC, the country’s largest fuel supplier, sparked a wave of competitive pricing among private marketers seeking to capture the market share in an environment where consumers are highly sensitive to price fluctuations.

The pain of the price reduction was more significant for petrol importers as they lost an average of N2.5bn daily and N75bn monthly due to the PMS price reduction.

But in a swift business survival strategy, these marketers have now secured fresh products at a cheaper cost that is now detrimental to the operations of the refinery.

According to the latest competency centre daily energy data released by the Major Energies Marketers Association of Nigeria and obtained by our correspondent on Tuesday, the on-spot estimated import parity into tanks has reduced to N774.82 per litre, a reduction of N152.56 or 16.5 per cent from the N927.48 per litre quoted on February 21, 2025 (the last energy data on petrol).

The average cost for 30 days also dropped to N864.92 per litre, while on-the-spot sale at the NPSC terminal was N927.53.

The document also noted that the price of Brent crude was benchmarked at $70.36 per barrel, down from $76.48 per barrel quoted on February 21, with an exchange rate of N1,517.24 per dollar. This price was calculated based on 38,000 metric tonnes by the marketers.

This cost is viewed as an improvement for importers, providing private depot owners and independent marketers with an alternative route to profitability and the opportunity to source cheaper products

Further checks by our correspondent revealed that private depots have effected a price change lower than marketers off taking products from the refinery.

An analysis showed that AA RANO depot has reduced its loading cost to N830 per litre, MENJ Depot now sells at N830, MRS TINCAN sold its products at N830, WOSBAB gave its customers a price estimate of N832, AITEO gave a price of N832 and RAINOIL depot sold its products at N831 per litre.

While marketers that bought two million litres from the Dangote refinery at N825 are selling at N835 per litre, indicating an N1 profit and N4 less than the price offered by private depots.

 

High expectations as petrol price may drop to N800/litre

(Punch)

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