FG offers more allowances for LGs

Local governments should get more allowances in the new revenue formula, the federal government has proposed.
The federal government has also recommended a reduction in vertical allocations to itself and to state governments.

However, Federation Government Secretary (SGF) Mr. Boss Mustapha said the statements while representing the federal government at the Abuja town hall meeting for the review of vertical allocation to governments. federal, state and local.
Represented by the Permanent Secretary for Political and Economic Affairs at the SGF Office, Mr. Andrew Adejoh, SGF has stated that the federal government will apply a 3.05 percent reduction in the allocation of the Federation account and 1 , 1 percent reduction in allocation to State Governments.

For local governments, the federal government wants 3.13% to be added to their monthly revenue from the Federation account.

According to SGF: “As an interim and immediate measure, the federal government is therefore proposing the following: federal government 50.65%; State government 25.62%; Local government 23.73 percent and bypass allowance 13 percent.

The current vertical revenue allocation formula is 52.68% federal government; State Governments 26.72%; Local government 20.60% and derivation formula 13%.