SiidAfrica Initiatives for Youth Development has partnered with BudgIT Foundation and American Corner, Lagos, to educate, enlighten and engage youths from different higher institutions of learning, youth groups, associations, and community youth leaders on making recommendations to the ongoing review of the revenue allocation formula.
The engagement was organized by SiidAfrica for the purpose of ensuring that the revenue allocation formula can be of benefit to the development of Nigerian youths.
Speaking at the event, Miss Doom Ikyaator, on behalf of the director of America corner, also charged youths to emulate SiidAfrica by being flagbearers for development in Nigeria.
She stated that the America Corner is dedicated to providing the necessary support readily available to enable young Nigerians to get more involved in leading discussions and organizing engaging events that will be useful to foster development in Nigeria.
The guest speaker Mr. Iniobong Usen, Research and Policy Advisory/Extractive with BudgIt Foundation who spoke extensively on “Nigeria Revenue and Budget: What to Know”, explained that participants need to engage the government, community leaders, and the Revenue Commission on the ongoing allocation formula.
In his presentation, which covered the processes of revenue generation by the Nigerian government’s dependent on oil, the User took participants through comparative analysis of different budgetary levels in Nigeria stating the different challenges faced on the execution of major capital-intensive budgets by the government.
Earlier in his opening remark, Mr. Olamilekan Lawal, the Team lead for SiidAfrica Initiatives stated that “the ongoing review of the revenue allocation formula is one of such discussions that demand active participation by Nigeria youths.”
He also added that Nigeria youths need to be more proactive than reactive to leadership and developmental processes in the country
Reading through the briefing of Engr. Elias Nwalem Mbam, Chairman of Revenue Mobilization Allocation and Fiscal Commission (RMAFC) to Civil Society Organizations, Mr. Olamilekan Lawal made it known that one of the major responsibilities of the Commission is to review the revenue allocation formula from time to time, and also backed it up with where it is stated in the Nigeria 1999 constitution.
Discussing the way forward and how to build a sustainable approach from the event, Mr. Olamilekan Lawal stated that SiidAfrica is working on establishing ‘Nigeria Youth Development Partners (NYDP)’ as the largest pool of youth-focused organizations and associations across Nigeria.
He said, “this is to level up with the many coalitions, networks, and groups established in the development space to attend to issues like gender, election, corruption, etc, while not publicly available to drive the process of youth development in Nigeria. This is necessary to carry along as many as possible youths’ organizations, associations, and groups possible to engage and lead discussions in decision-making processes in Nigeria.”
Youths at the meeting resolved that revenue allocation for Nigeria youths should be centered on empowerment by leveraging on creative and technology sectors which can help develop more innovations.
They also recommended the creation of the Ministry for Youths, led by youth with a focus on youth development to replace the current sandwiched ministry of youth and sports at the Federal and state level, while a local government level youth should also be separated from Agriculture and Social services.
Meanwhile, the last general review of the Revenue Allocation Formula was carried out in 1992, over twenty-eight years ago with 6 attempts made to review the formula in 2001, 2002, 2003, 2004, 2006, and 2014. However, all attempts have proven abortive.
In view of the above, the Commission has commenced the review of the current Vertical Revenue sharing arrangement with a view to producing a fair, just, and equitable revenue sharing formula that will be acceptable to the majority of Nigerians.
The vertical formula deals with a formula for the allocation to Federal, State, and Local Governments. The current sharing formula is as follows: Federal Government (Including Special Funds) 52.68%, State Governments 26.72%, Local governments 20.60%.
The Federal Government share of 52.68% is distributed as follows: (i) Federal Governments Consolidated Revenue Fund (CRF) 48.50%, (ii) Federal Capital Territory (FCT) 1.00%, (iii) Development of Natural Resources 1.68%, (iv) Ecological Fund 1.00%, (v) Stabilization Fund 0.50%.