BUSINESS
RMAFC Presents New Revenue Sharing Formula to Gov’t .FG gets 45.17%, States 29.79%, LGs 21.04 %
By Joseph Amah, Abuja
The Federal Government will have its share of revenue allocation cut by 3.33 per cent if the new revenue sharing formula proposed by the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) gets approval.
In the proposed new revenue sharing formula, the Federal Government takes 45. 17 per cent, the states, 29. 79 per cent and the Local Government Councils 21.04 per cent.While the Federal Government shed 3.33 percent, states and local governments have their share increased by 3.07 per cent and 4.4 percent respectively.Under the current sharing arrangement, the federal government takes 52.
68 percent of the revenue shared, states get 26.72 percent while local governments get 20.60 percent.The development is coming on the heels of the review of the current revenue sharing formula by RMAFC, which commenced in June, last year.Receiving the report at the State House, Abuja, yesterday, President Muhammadu Buhari said he will await the final outcome of the constitutional review process before presenting the report to the national assembly.
The President in a statement by Femi Adesina, presidential spokesperson said, ‘‘Ordinarily, I would have gone ahead to table this report before the National Assembly as a Bill for enactment.
‘‘However, since the review of the vertical revenue allocation formula is a function of the roles and responsibilities of the different tiers of government, I will await the final outcome of the constitutional review process, especially as some of the proposed amendments would have a bearing on the recommendations contained herein.”Speaking further, Buhari outlined some of the recommendations in the report. ‘‘Establishing local government as a tier of government and the associated abrogation of the state/local government account; moving airports; fingerprints, identification and criminal records from the exclusive legislative list to the concurrent legislative list, empowering the RMAFC to enforce compliance with remittance of accruals into and disbursement of revenue from the Federation Account as well as streamlining the procedure for reviewing the revenue allocation formula.’’The president assured members of the commission that the Federal Government would immediately subject the report to its internal review and approval processes, while awaiting finalisation of the efforts by the national assembly.
According to the president, this strategy, rather than issuing an Executive Modification order, as was done in 1992, is more in line with entrenching our democratic tenets.“I am aware that the present revenue allocation formula has not been reviewed since the last exercise carried out in 1992.‘‘Considering the changing dynamics of our political-economy, such as privatisation, deregulation, funding arrangement of Primary Education, Primary Health Care and the growing clamour for decentralisation among others; it is necessary that we take another look at our Revenue Sharing Formula, especially the vertical aspects that relate to the tiers of government.‘‘This becomes more compelling as we need to reduce our infrastructural deficit, make more resources available for tackling insecurity, confront climate change and its associated global warming and make life more meaningful for our rapid growing population,” the president said.
According to him, equitable distribution has always been observed in the sharing of national resources.“‘I want to let you all know that I have keenly followed most of the discussions held in the geo-political consultative process and one thing that struck me clearly was the agreement that a review of our vertical revenue formula cannot and should not be an emotional or sentimental discussion and it cannot be done arbitrarily,” Buhari said.‘‘All over the world, revenue and resource allocation have always been a function of the level of responsibilities attached to the different components or tiers of government.‘‘I am, therefore, happy to note that the discussions were held along these lines and rested squarely on roles and responsibilities as spelt out in the 1999 Constitution (as amended).‘‘However, I also note that in reaching the final decisions at most of these engagements, not much emphasis was placed on the fact that the Second Schedule of the Nigerian constitution contains Sixty Eight (68) items on the Exclusive Legislative List and the remaining Thirty (30) items on the Concurrent List requiring both the Federal and State Government to address.”Buhari, therefore, said for the nation to have a lasting review of the present revenue allocation formula, there must first be an agreement on the responsibilities to be carried out by all the tiers of Government.
He noted that the proposal seeks a 3.33 percent reduction in the current federal government allocation and on the other hand an increase of 3.07 percent and 4.4 percent for the states and local governments. He added that with regards to special funds, the report by the RMAFC proposed an increase of two percent for the federal capital territory (FCT) and a decrease of 38 percent for development of natural resources. The president said that the Federal Government also made its input into the process of reviewing the vertical revenue allocation formula.
According to him, this was based on existing constitutional provisions for roles and responsibilities for the different tiers of government.“We must note the increasing visibility in Sub-national level responsibilities due to weaknesses at that level, for example: Primary Health Care; Basic Primary Education; Levels of insecurity, and; Increased remittances to State and Local Governments through the Value Added Tax sharing formula, where the Federal Government has only 15% and the States and Local Government share 50% and 35% respectively,’’ he added.
Speaking while presenting the report, chairman of RMAFC, Elias Mbam, said the proposed vertical revenue allocation formula advised 45.17 percent for the FG, 29.79 percent for state governments and 21.04 per cent for the local governments.
Under special funds, he said, the report by the commission recommended 1.0 percent for ecology, 0.5 percent for stabilisation, 1.3 percent for development of natural resources and 1.2 percent for the FCT. In arriving at the new vertical revenue allocation formula, Mbam said there was wide consultation with major stakeholders, public hearing in all the geo-political zones, administering of questionnaires and studying of some other federations with similar fiscal arrangements like Nigeria to draw useful lessons from their experiences.
According to the RMAFC chairman, the commission also visited all the 36 states and the FCT, the 774 local government areas to sensitize and obtain inputs from stakeholders.He added that literature reviews were conducted on revenue allocation formula in Nigeria dating back to the pre-independence period.
He added the commission received memoranda from the public sectors, individuals and private institutions across the country. Mbam noted that since the last review was conducted in 1992, the political structure of the country has changed with the creation of six additional states in 1996, which brought the number of states to 36.Correspondingly, he said, the number of local governments councils also increased from 589 to 774.
By Engineer Olusola Omotunde
The advent of cloud technology can be traced back to the 1960s according to https://www.cloudzero.com/blog/history-of-the-cloud/.
Cloud technology has evolved from a myth to a revolution in the global space.
In fact, it forms one of the best ways to secure data and save organizational funds.
A drift from the era of physical data centers has become the norm.
Cloud platforms like Amazon and Azure have taken over the scene even in developing climes. How much space does an organization need for its operations and what is the cost effect?Another pertinent point would be, the security of organizational data.
In this paper, we will provide a synopsis of cloud security and its role in healthcare cybersecurity.
The healthcare industry is one of the most critical aspects of any nation. How safe are patient’s data? What are the mitigating factors? How regularly does the IT team carry out an assessment of the security in place? In all of these, cloud security comes into play.
Cloud security is critical in healthcare cybersecurity because it provides the tools, processes, and policies required to protect sensitive patient data and assure regulatory compliance in an increasingly digital environment. Healthcare organizations that use cloud services for electronic health records (EHRs), telemedicine, patient portals, and other services face specific cybersecurity challenges, such as protecting huge amounts of personally identifiable information (PII) and protected health information (PHI).
Below are some aspects where cloud security contributes or plays pivotal roles in healthcare cybersecurity:
1. Data Protection
• Data Backup and Recovery: Cloud solutions provide backup and disaster recovery capabilities, which assist healthcare organizations in protecting data from loss due to cyberattacks or system failures.
• Encryption: Cloud providers provide sophisticated encryption options for data at rest and in transit. This is critical for healthcare providers to safeguard sensitive patient information from unauthorized access.
2. Prevention and Detection of Threat
• Real-time Monitoring and Alerts: Cloud security solutions can provide 24-hour monitoring and notifications if suspicious behaviour is discovered. This quick response capability is crucial for healthcare organizations to avoid or mitigate the effects of cyber events.
• Advanced Threat Protection: Cloud providers provide services that include threat detection features like intrusion detection, malware scanning, and vulnerability assessments. These services assist healthcare organizations in identifying and addressing hazards before they cause harm.
• Automated Patch Management: Cloud providers frequently handle patch management for their infrastructure, ensuring that systems are up to date against the most recent vulnerabilities, which can dramatically minimize the risk of attack.
3. Flexibility and Scalability
• Scalable Security: As healthcare organizations expand, cloud security can scale with them, allowing for the installation of additional security measures without requiring major infrastructure upgrades.
• Adaptable Infrastructure: Healthcare organizations can quickly respond to emerging threats with cloud-based solutions that include updated security tools and services. This adaptability is critical in a dynamic threat context.
4. Cost Efficiency
• Pay-as-you-go Model: Many cloud services use a pay-as-you-go model, which allows healthcare providers to only pay for the security services they use. This can help organizations manage costs while still providing high-quality security tools.
• Reduced IT Costs: Cloud providers manage and maintain the infrastructure, eliminating the need for healthcare companies to invest heavily in on-premises security hardware and personnel.
5. Regulatory Compliance
• HIPAA and GDPR Compliance: Cloud providers that service healthcare organizations frequently offer solutions designed to comply with industry-specific standards such as the Health Insurance Portability and Accountability Act (HIPAA) in the United States and the General Data Protection Regulation (GDPR) in Europe.
• Audit Support: Many cloud services provide logging and monitoring capabilities to assist healthcare organizations in tracking and auditing data access and usage, which is critical for regulatory compliance.
Key Considerations for Healthcare Providers across the globe
When healthcare providers deploy cloud solutions, they must address a number of security concerns to safeguard sensitive patient data, ensure regulatory compliance, and manage possible risks. It is also important that they scrutinize the security certificates held by cloud providers, ensure that they clarify ownership rights to their data with their cloud providers, training staff on the security best practices which include training on data handling, phishing awareness and secure access protocol.
There is no one-size fits all rule other than being careful!
Engineer Olusola Omotunde is an IT expert and writes from Lagos, Nigeria
The Securities and Exchange Commission (SEC) says it is organising a compliance summit for Chief Executive Officers (CEOs) and Compliance Officers to address Financial Action Task Force (FATF) and related issues.
The Director-General of SEC, Dr Emomotimi Agama, said this in a statement made available on Saturday in Lagos.
He said that the summit, with the theme, “Navigating regulatory challenges: Aligning with changes in FATF in the era of VASPS,” would be in Lagos on Oct.
21 and Oct. 22.According to him, SEC aims to equip capital market operators with the necessary tools and knowledge to thrive in a complex regulatory environment.
Agama said that the Nigerian Capital Market Institute (NCMI), a subsidiary of SEC, would hold the summit.
He noted that the summit would ultimately foster a culture of compliance and integrity in the operations of the participants.
“The aim is to equip capital market operators with essential insights and strategies to effectively navigate the evolving regulatory landscape.
“Attendees are to gain knowledge of understanding regulatory changes, clarity on the latest updates to FATF standards and how these impact Virtual Asset Service Providers (VASPs).
“They will also learn best practices for aligning their compliance programmes with new regulations, ensuring they meet international standards that enhance compliance frameworks in their organisations,” he said.
According to him, key objectives of the summit are regulatory compliance, understanding and implementing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations.
Others, he added, would include risk management, which encompasses identify, assess and mitigate risks associated with virtual assets and operational efficiency which would lead to enhanced internal controls, governance and compliance frameworks.
The director-general mentioned that the benefits of the summit include regulatory clarity, risk reduction, enhanced governance, competitive advantage and networking opportunities.
The welcome address at the summit is expected to be presented by Ms Frana Chukwuogor, Executive Commissioner, Legal and Enforcement, SEC Nigeria.
The opening remarks and overview of the summit will be delivered by Dr Agama while Ms Hafsat Bakari, Director, Nigeria Fraud Intelligence Unit(NFIU) will present a goodwill message.
Among the speakers expected at the event are, Mr Obinna Iwuno, Chairman, Stakeholders in BlockChain Association of Nigeria (SiBAN) and Certified Cryptocurrency Compliance Specialist and Investigator, Mr Ade Bajomo.
Also, Mr Zacch Adedeji, Executive Chairman, Federal Inland Revenue Service (FIRS), President, Fintech Association in Nigeria, Mr Peter Shodipo, and the President, Committee of Chief Compliance Officers of Capital Market Operators in Nigeria (CCCOCIN) among others.(NAN)
To end the week, the stock market rebounded from previous losses, gaining N74 billion.
Investor interest in MTN Nigeria, FBN Holdings, Guaranty Trust Holding Company (GTCO) and other equities lifted the market.
Notably, the market capitalisation opened at N56.014 trillion, adding N74 billion or 0.
13 per cent to close at N56.088 trillion.The All-Share Index also advanced by 0.
13 per cent, or 129.44 points, closing at 97,606.63, compared to 97,477.19 recorded on Thursday.As a result, the Year-To-Date (YTD) return increased by 30.54 per cent.
The market breadth closed positive, with 31 gainers and 19 losers on the floor of the Exchange.
On the gainers’ chart, Consolidated Hallmark Plc and Sterling Nigeria led by 9.
45 per cent each to close at N1.39 and N4.98 per share respectively.Mecure followed by 9.19 per cent to close at N10.10, Regency Alliance Insurance gained 9.09 per cent to close at 72k, while Fidson Healthcare Plc increased by 8.24 per cent to close at N15.10 per share.
Conversely, Deap Capital Management and Trust led the losers’ chart by 9.93 per cent to close at N1.36, NEM Insurance trailed by 9.71 per cent to close at N7.90 per share.
Daar Communications also lost 9.52 per cent to close at 57k, Tantalizers shed 9.09 per cent to close at 60k, while Dangote Sugar declined by 3.31 per cent to close at N31 per share.
Analysis of the market activities showed trade turnover settled higher relative to the previous session, with the value of transactions up by 20.33 per cent.
A total of 304.43 million shares valued at N5.60 billion were exchanged in 6,950 deals, compared with 277.75 million shares valued at N4.65 billon in 7,091 deals traded in the previous session.
Meanwhile, Access Corporation led the activity chart in volume and value with 68.26 million shares valued at N1.34 billon.(NAN)
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