FG Is Considering Review Of “National Cake” Sharing Formula
The Nigerian government is considering taking another look at how its revenues are shared with states and local governments.
The consideration is said to have been triggered by the adoption of a new minimum wage of 30,000-naira as demanded by state governments.
Reports say that the federal government has therefore resolved to engage the 36 state governors and the Council of State in a review of the nation’s federal allocation sharing formula.
Recall that the Nigeria Governors Forum, NGF had called for a review of the sharing formula as a condition for the acceptance and the implementation of the proposed 30,000-naira National Minimum Wage.
Following the National Economic Council, NEC meeting chaired by Vice President Yemi Osinbajo on Thursday, it was gathered that if agreed upon, the proposed wage would be taken care of as prescribed by the Revenue Mobilisation Allocation and Fiscal Commission.
The NGF had recently sought a new fiscal restructuring plan on the grounds that economic challenges in the states would make payment of the new wage difficult.
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