Connect with us

Economy

Ishaku Demands Urgent Review of Revenue Allocation Formula

Published

on

Taraba State Governor Darius Ishaku
Share

From Victor Gai, Jalingo


Taraba state governor, Darius Ishaku has  advocated immediate upward review of the current revenue allocation formula to cushion the pangs of financial burdens of the states and local government areas in the country.

 


He made the assertion during a two-day review meeting on revenue allocation formula with the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) in Jalingo, the State capital.


In his keynote address, Governor Ishaku, represented by his deputy, Engr Haruna Manu, stated that the upward review of the revenue allocation formula has become imperative because it has been long overdue, since the last exercise was carried out during the military rule in 1992.


The governor further frowned at the current situation where the federal government has continued to enjoy the lion share of 52%, leaving the 36 states and the 774 local government areas with a paltry 48% to share.


He said, “in the past decades, the transformations witnessed in the country have increasingly shifted the burden of governance in the face of insufficient and dwindling revenue allocation from the Federation Account; this has over the years affected the effective performance of state and local government administrations in Nigeria.


“In the light of this uneven and inequitable revenue sharing formula, I wish to State that the revenue sharing formula is unfavourable to the second and third tiers of government, since it cannot keep up with our rising obligations, necessitating an immediate review of the formula.”


Furthermore, the governor enjoined Tarabans, particularly the stakeholders, to participate fully in the review process by submitting position papers and engaging in meaningful dialogues to improve fiscal efficiency at the subnational level.


On his part, the Speaker of the State House of Assembly, Rt. Hon. Joseph Albasu Kunini,  strongly argued that revenue allocation formula has been one of the fundamental decision rules in allocating resources in the public sector worldwide, hence Nigeria should not be an exception.


According to him, the main reasons for revenue allocation in the country was to promote national unity and rapid economic growth, but he regretted that despite the continuous increase in revenue generation in the country, the expected impact on the citizenry has not been realized and felt, due to the revenue allocation problems.


He further faulted the current revenue allocation formula among the three tiers of government, just as he averred that the current clamour and advocacy going on within the public domain has to do with the dire need for upward review of the revenue allocation formula among the federal, state and local governments in the country.


Against this backdrop, he stressed that upward review of the revenue allocation formula in the country would chart a new order to match up with other developed countries of the world.


“The current revenue allocation formula, adopted, maintained and used by the federal government of Nigeria be reviewed to enable each tier of government be funded based on the functions it performs.


“By doing so, each tier will perform the expenditure functions within its jurisdictions for exercising full autonomy as a federal component.


“That in the spirit of full autonomy for the principles of true federalism to be in operations, states and local governments in Nigeria should be given a higher percentage.


“This is because both the states and local governments are discovered to be the tiers of government that are closer to the citizens, in terms of the basic needs needed by the citizens, since majority of Nigerians live in rural areas where social amenities are in short supply,” the Speaker explained.


He then proposed a new revenue sharing formula in tandem with the current economic realties and burdens of governance  as follows: federal government – 40.20%, state governments – 34.20%, and local governments – 25.60% (totally 100%).


The Speaker also advocated that the current 13% derivation being enjoyed by the oil producing states be reduced to 10%, since the 3% has now been captured in the Petroleum Industry Act signed by President Muhammadu Buhari, recently.


Earlier, in his opening speech, the Chairman of the Commission, Engr Elias N. Nbam, represented by a Federal Commissioner representing Taraba State, Engr Ahmed Yusuf, stated that the Commission was carrying out its constitutional functions as contained in Part I, Paragraph 32 of the 1999 Constitution of the Federal Republic of Nigeria (as Amended) which has empowered it, “to review from time to time the Revenue Allocation Formula and Principles in operation to ensure conformity with changing realities, provided that any Revenue Formula which had been accepted by an Act of the National Assembly shall remain in force for a period of not less than five (5) years from the date of commencement of the Act.”


He, therefore, stressed that the sensitization exercise was designed to enlist the interests of the stakeholders, through interactions at various levels in order to get informed and make useful inputs that could provide workable template to assist the Commission in its task of evolving and bequeathing to the Nation a fair, just and equitable new revenue sharing formula.

Economy

Imo records over $1m from non-oil exports in 2025 – NEPC

Published

on

Share

The Nigerian Export Promotion Council (NEPC) says exporters in Imo generated a total of 1,244,095 dollars as proceeds from export trade in 2025.

The Imo Coordinator of the council, Mr Anthony Ajuruchi, disclosed this during a follow-up engagement with cocoa farmers in the state on Thursday in Owerri.

50 cocoa farmers and exporters in Imo received 30 cocoa seedlings each in 2025 as part of interventions to boost production for export.

Ajuruchi said the amount was derived from proceeds of both formal and informal export transactions carried out by the farmers within the 2025 fiscal year.

He commended the Executive Director of NEPC, Mrs Nonye Ayeni, and the management team for their support and commitment to the growth of the export market in Imo and across the country.

According to him, the council recorded notable achievements in 2025, including the organisation of capacity-building programmes on non-oil export, product packaging and labelling.

“In addition to our interventions for cashew farmers, we conducted trainings on product development and adaptation, export contracts, market penetration, product certification and export documentation procedures.

“We also trained about 600 exporters and small and medium-scale enterprises,” he said.

Ajuruchi said the engagement with the cocoa farmers was aimed at obtaining feedback and brainstorming on strategies to increase production and export volume in 2026.

One of the beneficiaries, Mrs Sophia Orji, said the cocoa seedlings she received were doing well and had started fruiting after 17 months.

Another farmer, Mrs Mary Okeke, said her cocoa plants were thriving and appealed to NEPC to extend similar support to farmers during the rainy season.

Also speaking, Mr Canice Nze, Director of Produce in the Imo Ministry of Trade, Commerce and Investment, urged the farmers to register with the ministry to enable them benefit from cooperative structures and access possible government grants. (NAN)

Continue Reading

Economy

NCC, CBN Approve Refund Framework for Failed Airtime and Data Transactions

Published

on

Share

By David Torough, Abuja

In line with the consumer-focused objectives of the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN), the two regulators have drawn up a framework to address consumer complaints arising from unsuccessful airtime and data transactions during network downtimes, system glitches, or human input errors.

The framework is the outcome of several months of engagements involving the NCC, the CBN, Mobile Network Operators (MNOs), Value Added Service (VAS) providers, Deposit Money Banks (DMBs), and other relevant stakeholders.

According to the NCC, these engagements were prompted by a rising incidence of failed airtime and data purchases, where subscribers were debited without receiving value and experienced delays in resolution.

“The Framework represents a unified position by both the telecommunications and financial sectors on addressing such complaints. It identifies and tackles the root causes of failed airtime and data transactions, including instances where bank accounts are debited without successful delivery of services. It also prescribes an enforceable Service Level Agreement (SLA) for MNOs and DMBs, clearly outlining the roles and responsibilities of each stakeholder in the transaction and resolution process,”  a statement by Head of Public Affairs of NCC, Nnen Ukoha said.

Under the new framework, where a purchaser is debited but fails to receive value for airtime or data—whether the failure occurs at the bank level or with an NCC licensee—the purchaser is entitled to a refund within 30 seconds, except in circumstances where the transaction remains pending, of which the refund can take up to 24 hours.

The framework further mandates operators to notify consumers via SMS of the success or failure of every transaction. It also addresses erroneous recharges to ported lines, incorrect airtime or data purchases, and instances where transactions are made to the wrong phone number.

  Director of Consumer Affairs at the NCC, Mrs. Freda Bruce-Bennett in a comment on the development said   the framework also establishes a Central Monitoring Dashboard to be jointly hosted by the NCC and the CBN. According to her, the dashboard will enable both regulators to monitor failures, the responsible party, refunds, and track SLA breaches in real time.

“Failed top-ups rank among the top three consumer complaints, and in line with our commitment to addressing these priority issues, we were determined to resolve it within the shortest possible time,” she said.

“We are grateful to all stakeholders—particularly the Central Bank of Nigeria and its leadership—for their tireless commitment to resolving this issue and arriving at this framework, and for ensuring that consumers of telecommunications services receive full value for their purchases.

“So far, pending the approval of management of both regulators on the framework, MNOs and banks have collectively made refunds of over N10 billion to customers for failed transactions” she explained .

Mrs. Bruce-Bennett further noted that implementation of the framework is expected to commence on March 1, 2026, once the two regulators have made final approvals, and technical integration by all MNOs, VAS providers and DMBs is concluded.

Continue Reading

Business News

Budget Office Defends Tax Reform Acts, Seeks Due Process

Published

on

Share

By Tony Obiechina, Abuja 

The Budget Office of the Federation has reaffirmed the integrity of Nigeria’s newly enacted Tax Reform Acts, cautioning against what it described as governance by speculation and unverified claims following allegations of post-passage alterations.

In a statement on Wednesday, the Budget Office said it had taken note of concerns raised by the Minority Caucus of the House of Representatives, stressing that the sanctity of the law is central to constitutional democracy and not a mere procedural formality.

According to the Office, any suggestion that a law could be altered after debate, passage, authentication, and presidential assent without due process would strike at the core of the Republic and undermine citizens’ right to be governed by transparent and stable laws.

However, it warned that democratic integrity is also endangered by the careless amplification of unverified claims. “A nation cannot be governed by insinuation or sustained on circulating documents of uncertain origin,” the statement noted, adding that public confidence, once shaken by speculation, is often difficult to restore.

The Budget Office emphasized that both government and citizens share a common interest in truth, clarity, and due process, noting that public finance depends heavily on trust in the legality and clarity of fiscal laws. It welcomed the decision of the National Assembly to investigate the allegations, describing institutional inquiry, not conjecture as the appropriate response to claims of illegality.

On public access to the law, the Office agreed that Nigerians and the business community are entitled to clear and authoritative texts of all laws they are required to obey. It clarified, however, that the authenticity of legislation is determined by certified legislative records and official publication processes, not by informal or viral reproductions.

The statement also underscored the importance of separation of powers, warning that claims suggesting Nigeria is being governed by “fake laws,” if not backed by established facts, risk eroding confidence in democratic institutions.

 At the same time, it stressed that legislative scrutiny should not be dismissed by the executive, noting that oversight is a constitutional duty, not an act of hostility.

From a fiscal perspective, the Budget Office said legal certainty is essential for revenue projections, macroeconomic stability, budget credibility, and investor confidence. While it is not the custodian of legislative records, it maintained that uncertainty around operative tax provisions directly affects economic planning.

To restore confidence, the Office proposed a set of measures, including the publication of verified reference texts in a single public repository, orderly access to Certified True Copies for stakeholders, clear public explanations where discrepancies are alleged, and strict alignment of all implementing regulations with authenticated legal texts.

Addressing calls for suspension of the tax reforms, the Budget Office cautioned against allowing prudence to slide into paralysis. It argued that properly implemented tax reform is necessary to reduce dependence on borrowing and inflationary financing, while easing indirect burdens on vulnerable citizens.

“Where clarification is required, it must be provided; where correction is required, it must be effected; where investigation is required, it must proceed,” the statement said, adding that governance and reform should not be stalled by unresolved conjecture.

The Office concluded by describing taxation as a democratic covenant that binds citizens and the state, insisting that compliance depends on transparency and trust. It called on political actors to protect institutions as much as positions, urging citizens and businesses to rely on verified sources and resist the spread of unauthenticated information.

The statement was signed by Tanimu Yakubu, Director-General of the Budget Office of the Federation, who reaffirmed the agency’s commitment to fiscal transparency, institutional integrity, and reforms that advance national prosperity while safeguarding citizens’ rights.

Continue Reading

Advertisement

Top Stories

NEWS16 hours ago

Talata Mafara Attack: ISN Demands Intelligence Overhaul, Special Courts to Crush Banditry

ShareBy David Torough, Abuja The Institute of Security, Nigeria (ISN) has called for a fundamental overhaul of Nigeria’s approach to...

NEWS16 hours ago

Lagos Court Nullifies Onise of Ise Installation, Orders Withdrawal of Staff of Office

ShareBy David Torough, Abuja The Lagos State High Court sitting in Lagos has set aside and nullified the purported installation...

NEWS21 hours ago

Former PDP National Chairman, Bamanga Tukur is dead

ShareFrontline business magnet and former National Chairman of Peoples Democratic Party(PDP), Alhaji Bamanga Tukur is dead. He was aged 90....

NEWS2 days ago

NAICOM, NCAA Partner to Strengthen Air Travellers’ Protection

ShareThe National Insurance Commission (NAICOM) and the Nigeria Civil Aviation Authority (NCAA) have signed a Memorandum of Understanding (MoU) to...

NEWS2 days ago

Customs Seizes N43.5bn Narcotics, Drones, Expired Goods at Apapa Port

ShareThe Nigeria Customs Service (NCS) has intercepted narcotics, controlled pharmaceuticals, drones and expired goods valued at N43.5 billion at the...

NEWS2 days ago

IPMAN Tasks Marketers on Local Refineries for Product Sourcing

ShareThe National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Alhaji Abubakar Shettima, has urged independent petroleum marketers...

NEWS2 days ago

CBN Bags NES Distinguished Organisation Award for Economic Reforms

ShareBy Tony Obiechina, Abuja The Central Bank of Nigeria (CBN) has received the Nigerian Economic Society’s (NES) Distinguished Organisation Award...

NEWS2 days ago

2027: Information Minister Urges Niger APC Leaders to Back Tinubu’s Reforms

ShareBy David Torough, Abuja The Minister of Information and National Orientation, Mohammed Idris, has urged APC leaders in Niger State...

DEFENCE2 days ago

Police Arrest Two Suspected Car Snatchers in Delta

ShareThe Delta State Police Command has arrested two suspected car snatchers and recovered a Toyota Camry in the state. The...

NEWS2 days ago

Otti Highlights Seven Investment Priority Sectors in Abia

ShareAbia State Governor, Alex Otti has highlighted seven priority sectors and investment opportunities to drive industrialisation and economic development in...