Nigeria To Review Revenue Allocation Formula

The adoption of a new minimum wage of N30,000 has necessitated the review of the national revenue sharing formula as demanded by state governments.

Reports say that the federal government has therefore resolved to engage the 36 state governors and the Council of State in a review of the nation’s federal allocation sharing formula.

Nigeria Governors Forum (NGF) had called for a review of the formula as a condition for the acceptance and the implementation of the proposed N30, National Minimum Wage.

Following the National Economic Council (NEC) meeting chaired by Vice President Yemi Osinbajo, it was gathered that if agreed upon, the proposed wage would be taken care of as prescribed by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).

The NGF had recently sought a new fiscal restructuring plan on the grounds that economic challenges in the states would make payment of the new wage difficult.