Governor Liyel Imoke of Cross River State says the current revenue allocation formula in the country needs to be reviewed to reflect true democracy.
Imoke said this while receiving members of Revenue Mobilization, Allocation and Fiscal Commission (RMAFC) led by Chief Mrs. Martina Odom on the review of the Revenue Allocation Formula before the State Executive Council and the judiciary.
The Governor noted that the formula in the spirit of true democracy should be amended, and said that the exercise needs a strong coordination in situation where every tier of Government is able to make a strong input, adding that the review goes beyond the law because constitution amendment is extensive.
He observed that though there is discrepancy between executive list and current list which favors the Federal Government, it should be amended to enable all to agree on certain terms, stressing that the challenge is the political will to make a meaningful way because it is asking about the sharing formula.
According to Imoke, Federal Government with its large allocation rarely makes its Impact felt in the States and that most of its projects suffer delay because its budgets have many items therefore creating many challenges, but States with more projects seem to be acknowledged because the government is closer to the people.
"This is a serious matter, but collectively, we can make a strong case and can do a little more of what is on ground," he said, adding that, "All the 36 States are doing what the Federal Government is doing and there is need to draw the line on who does what, which calls for a new formula".
He maintained that the review is very important and needs strong input to justify things that need to be addressed because the exploration in States and exploitation generates 13 percent derivation though the State Government does not know when licenses are issued to miners while the truth of the matter is that in a true Federal system, State receive revenue from their minerals but pay taxes to the Federal Government.
The Governor reasoned that sales tax and mining could improve Internally Generated Revenue (IGR) for States and advocated that the Commission should not only look into revenue sharing but extend its functions to include revenue generation by compelling companies that make their money in the States to pay taxes.
The Deputy Governor, Mr. Efiok Cobham, observed that there is need for a fiscal federalization to justify the unity structure of present Nigeria which calls for States to control their resources.
Justice Michael Edem, who represented the state Chief Judge, noted that that the Federal system practiced in Nigeria is in theory as the present revenue formula is too much for the Federal Government.
He called for the removal of 10 percent from Federal allocation to the sates because currently, States and Local Government Council allocation are close.
The Secretary to the State Government, Mr. Mike Aniah, noted that though the 1963 constitution allowed 50 percent derivation to the regions, which was further reduced by subsequent constitutions, he proposed that the current formula showed be 50 percent to the States without any constitutional amendment because it's proviso States that it should not be less than 13 percent.
Special Adviser, Political, Mr. Gabe Odu Oji, suggested that States with National Parks should be considered for derivations because the parks are conservation and preservation in perpetuity.
Earlier, Chief Mrs. Martina Odom, a member representing Cross River in RMAFC, disclosed that the Commission which was promulgated in 1998 has passed through series of amendments and that they were in the State on sensitization.
Odom enjoined all the States to look at the formula and make their contributions, stressing that Cross River has the opportunity to make its submission and articulate its stand to ensure equity, justice and fairness in the distribution of revenue allocation formula.
The current formula is; Federal Government-52.68percent, State Governments - 26.72 percent and Local Governments-20.60 percent and the Special Fund was reduced to 4.18 percent while the expendable share of the Federal Government at 48.50 percent.
The horizontal Revenue Formula is; Equity of States- 40 percent, Population- 30 percent, Land mars/terrain- 10 percent 1GR effort- 10percent and Special Development Factor-10 percent Covering (Education 4 percent, Health 3 percent, and Water 3 percent).
The Constitution provides for 13 percent derivation Fund to be paid on first line charge to States in respect of natural resources produced in their States.
That is how it should be. Support of this means they are a very serious government. Others will not!
And that is why the state is so different from the other states we have in Nigeria. Bigups to the governor