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Federation Account stressed, says RMAFC

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From Nduka Chiejina (Asst Editor), Abuja

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) on Monday raised the alarm that the Federation Account is stressed.

The RMAFC said is coming from the demands made on the account by the three tiers of government.

To reduce the stress, its Chairman, Elias Mbam has called on state governments to develop strategies to boost their internally generated revenue (IGR).

He spoke while receiving an Annual States Viability Index (ASVI) from the Editor-in-Chief of the Economic Confidential, Mr. Yushau A. Shuaib, in his office in Abuja.

According to the RMAFC chief, the Committee stressed by the over-dependence of the three tiers of government and hence the need for state governments to develop strategies to boost their IGR.

The over-dependence in the monthly Federation Account Allocation, Mbam said has made it imperative “for state governments to boost their IGR”.

He said: “The annual ASVI report apart from providing a good source of information to the general public also has been identified as a source of information that would drive RMAFC on its mandate to encourage states of the federation to improve their IGR.

“I have come to realise that Economic Confidential has become a household name and its reports that are factual and authoritative should be useful, especially in guiding states whose revenues keep dwindling so that they can improve.”

Shuaib said the ASVI report assessed and ranked States by their yearly IGR in comparison to their receipts from the Federation Account Allocation.

He said the report has shown that “without the monthly disbursement from the Federation Account, many states cannot survive as the indices showed that seven states are insolvent due to very poor IGR that were far below 10per cent of their receipts from the Federation Account”.

Shuaib stated that apart from Lagos and Ogun states that ranked high in the revenue generation last year, more states recorded impressive IGR last year compared to the previous year.

The report shows that only Rivers, Kaduna, Enugu, Kwara and Zamfara states did well on revenue generation last year compared to their IGR in the previous year 2018 by improving more than 10per cent.

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