RESOURCE disbursement is a fundamental issue in Nigeria’s federalism. The nation has federating units with their respective constitutional responsibilities to execute. They also have taxation powers.

Revenue sharing has been a subject of hot debate because of its political nature. Many commissions/committees have been set-up at different times and saddled with the responsibility of examining and recommending the best principles and formulas to meet the expectations of stakeholders.

Some of these Commissions include: The Phillipson Commission (1946), The Hicks-Phillipson Commission (1951), The Raisman Commission (1958), The Binns Commission (1964), The Dina Interim Committee (1968), The Aboyade Technical Committee (1977), The Okigbo Commission (1980), The Revenue Mobilization Allocation and Fiscal Commission (RMAFC, 1989) and various military decrees, particularly the1970, 1971, 1992 versions.

All the Commissions/Committees were ad hoc in nature except for the RMFAC, which was established as a legal and permanent entity to deal with fiscal matters on a more regular basis as the need arises.

During the Olusegun Obasanjo presidency, the formula proposed by RMAFC gave the Federal Government 41.3 per cent, State Governments 31 per cent and Local Governments 16 per cent.

We believe that the call for a review of the formula is timely as an interim measure. In the new formula the Federal Government should have 36 per cent, State Governments 36 per cent, Local Governments 25 per cent,  Federal Capital Territory, one per cent and Ecology two per cent.

This is far more realistic than  the current vertical allocation formula which was based on an executive order in which the Federal Government takes 52.68 per cent, State Government 26.72 per cent, Local Government 20.60 per cent. This is because the lower tiers of government are closer to the people.

For the long term, however, we reiterate our call for a return to fiscal federalism. This central command structure for the economy which is a legacy of our past under military rule, can no longer be sustained in our democracy.

The various national conferences we have held in the recent past have called for the restoration of fiscal federalism which we practised before the civil war with distinction. Nigeria’s economy depended heavily on renewable agricultural and industrial ventures, which ensured more stable and predictable economic outlooks for the nation rather than the cycles of oil booms and busts we have faced since the war.

The call has been thwarted by the various federal administrations and interest groups which feel favoured by the current structure. But it is now even more obvious that we can longer postpone the “evil day”.

If, however, the Buhari administration, which promised fiscal federalism during the campaigns is unwilling to implement it, then it must be prepared to keep on bailing out the states and local governments.