Revenue Formula: Obi Advocates 40-40-20 %

[Shola Sholaz]

Gov. Peter Obi of Anambra has advocated 40-40-20 per cent revenue allocation formula for the Federal, States and Local Governments in the country.
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Obi made the suggestion when some members of the Revenue Mobilisation, Allocation and Fiscal Commission, visited him in Amawbia near Awka on Saturday.
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He said the allocation formula currently in use did not in any way reflect the realities of the day.
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"The formula that in use today was put in place during the military era. In a proper federating state, there are only two units, the federal and state governments. The local government does not exist.
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"In a federating unit anywhere in the world, the key driver of programmes is the state, which is the sub-nation. The nation is there, symbolic for issues of defence, external relations, and so on.
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"The format should have been 40-40-20; 40 for federal, 40 for states and 20 for local governments, with a clause that no state will receive lower than a bench mark."