The proposal by the Federal Government to shed part of its statutory revenue allocation, along with the States governments in favour of the third tier of government- local governments- has been described as progressive and commendable.
The Buhari Media Organisation (BMO) considers the move as not only magnanimous but a deliberate attempt by the Buhari administration to devolve governance to the people at the grassroots.
In a statement signed by its Chairman Niyi Akinsiju and Secretary Cassidy Madueke, BMO noted that Federal Government mooted the idea at a town hall meeting in Abuja on Tuesday 9th November 2021, on the review of vertical revenue formula by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC)
“The new proposal will give the 774 local governments a 3.13% increase which will move the revenue allocation of the local governments from its present 20.60% to the proposed figure of 23.73%. The Federal Government will shed 2.03% of its allocation, while the States will shed 1.10%.
“We are confident that with the Federal Government’s proposal the much-talked-about restructuring is already in progress as more resources will be made available for the development of the country’s rural communities and fiscal federalism will no longer be the war cry of opposition elements.
“We say this bearing in mind that the third tier of government is saddled with enormous responsibilities, ranging from the provision of primary healthcare, development and repair of rural roads and other infrastructures; primary and secondary schools, markets and catering for the general well-being of the residents”.
BMO commended The President Muhammadu Buhari administration for its foresight in thinking favourably “of the 774 local governments, a move which we believe will address the multi-faceted developmental challenges confronting Nigeria’s rural communities.
“Even as we acknowledge that this is an initial proposal by the Federal Government, and still subject to inputs of all stakeholders, we believe that the Federal Government has taken the right step in the right direction, as developments in the local governments will positively impact a greater number of Nigerians”, the statement added.
