Governor Olusegun Mimiko of Ondo State has said that the present revenue allocation formula from the federal government was not proportionate enough as to meet the needs of the states and local governments in the country.
Particularly, he faulted a situation where 52 percent of the federation account is vested in the coffers of the federal government while the 36 states with the 774 local government areas in the country are left with paltry 46 percent to run the development of the states and local councils.
Mimiko, who spoke on Monday, April 25, 2016, during the swearing in of the local government chairmen who were elected on Saturday, April 24, 2016, in Akure, urged the federal government, especially the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) to revisit the system and change the status quo.
According to him, with the present state of finance, development would be difficult in the states and local governments, arguing that the states and local government that have direct contact with the people should be given due consideration.
He said though the system has been in existence over the years, the 1999 constitution empowers the fiscal commission to prescribe a periodic review of the revenue allocation formula every five years in accordance with section 162 (2) of the same constitution.
Mimiko, who said the status quo had remained since 1999, appealed to RMFAC and the Federal Government, to take the appropriate bill to the National Assembly for amendment of relevant sections.
The governor pointed out that the constitution stipulated that the RMAFC should be reviewing the revenue allocation every five years but this had not been done in recent times.
He lamented that the development had caused a major hindrance to the development and implementation of policies at the state and local government levels.
He urged the newly sworn in chairmen to display exemplary leadership qualities, transparency and accountability in the conduct of government affairs in their various local councils. He also advised them to maintain security being the chief security officers in the local councils.
