- Shettima’s Charge: Calls for transparency and equity in revenue allocation.
- Eno’s Request: Seeks a review of oil revenue computation for increased funding.
- Akwa Ibom’s Progress: Claims significant development due to increased federal allocations.
Shettima’s Plea for Transparency
Speaking at the 2025 retreat for RMAFC members in Uyo, Akwa Ibom State, Vice President Shettima, through his representative Ibrahim Natagwandu, stressed the importance of transparency, equity, and service excellence. He reminded the commissioners that they are the guardians of a system designed to ensure fairness among all levels of government and promote fiscal balance across the nation.
Eno’s Push for Oil Revenue Review
Governor Umo Eno, the host of the retreat, seized the opportunity to appeal to the Commission to re-examine the computation of oil revenue remittances. He specifically targeted the indices affecting the 13% oil derivation funds for oil-producing states. Eno believes a fairer computation will lead to increased funding for development projects in these states. It’s worth noting that the 13% derivation principle is enshrined in the Nigerian constitution to ensure that oil-producing communities benefit directly from the exploitation of their resources. However, debates persist on how effectively this principle is implemented and whether the funds genuinely reach the intended beneficiaries.
Akwa Ibom’s Development Boom
Eno highlighted the positive impact of increased federal allocations on Akwa Ibom State. He stated that the state has become a massive construction site, with projects spanning across all 31 local government areas, thanks to the Federal Government’s intervention. This development is reportedly driven by his administration’s ARISE Agenda, focusing on human capital development, infrastructure, agriculture, and tourism.
The Bigger Picture: Revenue Allocation in Nigeria
The RMAFC plays a crucial role in determining how revenue is shared among the federal, state, and local governments in Nigeria. This is a sensitive issue, often fraught with political tensions and regional interests. The current revenue allocation formula has been a subject of debate for years, with many calling for a review to reflect current realities and ensure greater equity. For context, the last major review of the revenue allocation formula was in 1992. Nigeria’s revenue allocation is often contentious due to the country’s diverse population and the varying levels of development across different states.
Here’s a quick look at the typical distribution:
| Tier of Government | Percentage |
|---|---|
| Federal Government | 52.68% |
| State Governments | 26.72% |
| Local Governments | 20.60% |
What’s Next?
The RMAFC’s response to Governor Eno’s appeal remains to be seen. Any adjustments to the oil revenue computation could have significant implications for the finances of oil-producing states and the overall revenue distribution in Nigeria. The call for transparency from VP Shettima underscores the need for accountability and fairness in the management of public funds, which is critical for national development. As Nigeria grapples with economic challenges, the efficient and equitable allocation of resources becomes even more paramount.
About The Author
