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Home ECOWAS Nigeria

Revenue Formula: ALGON Rejects Proposed 3.13% Allocation Hike For LGs

by Diplomatic Info
November 17, 2021
in Nigeria
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Revenue Formula: ALGON Rejects Proposed 3.13% Allocation Hike For LGs
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The Association of Local Government of Nigeria (ALGON) Tuesday described the proposed 3.13 per cent increase in revenue allocation to the third tier of government as inadequate.

The Secretary to the Government of the Federation had last Tuesday, disclosed the proposal as the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) moves to review the current revenue allocation formula in the country.

ALGON President, Kolade Alabi, at the opening of the association’s National Executive Council meeting/retreat holding in Lagos on Tuesday, said the proposed increment was too inadequate compared to the 14. 4 per cent increase being demanded by the association.

He said: “On revenue allocation, our position is a humble request to upscale our revenue due to local governments and area councils from the present 20.6% to 35%. 

“We’re very positive that our request would be approved. However, we thank President Muhammadu Buhari for his proposal through the office of the Secretary to the Government of the Federation (SGF) for a 3.13 increase of the revenue sharing formula for local governments, we feel that this is inadequate compared to our request of 14.4% increase to make a 35.5% revenue sharing formula. 

“This request has become necessary because of all the things begging for the attention of the local governments in Nigeria.”

Alabi said the greatest challenge facing the country today was insecurity, noting that addressing it must be from a bottom-top approach, saying local governments are critical to ending the security challenges in Nigeria. 

He called for the adoption of state and community policing to holistically address the security challenges. 

Alabi also advocated harmonisation of the tenure of local government chairmen from three to four years as obtained in Lagos. 

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