Revenue Decline: RMAFC Recommends N10b Stabilisation Fund for States

Following the revenue decline of most states of the federation, Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has recommended more than N10 billion from the Federal Government’s stabilisation fund account to various states of the federation for the period two years.

The chairman of the commission, Mohammed Bello Shehu disclosed this in Abuja in a statement.

Bello informed that such recommendation is given in line with the provision of section 5(7) of cap A15 LFN 2004 under which the stabilisation fund was established and empowers the commission to work out an acceptable threshold from the stabilisation fund.

The Chairman cited Cross Rivers State as one of the states that is benefiting from the fund, stating that Cross Rivers State has been having a five years renewable recommendation for monthly payment of N500,000,000 from the stabilisation account since 2008.

This, according to Bello, was part of the Federal Government”s effort to settle and stabilise the displaced Nigerians who relocated from Bakassi Peninsula to the state after Nigeria”s ceding of the Peninsula to Cameroon in 2008.

Also, the revenue decline of Cross Rivers State was due to the ceding of oil wells to Akwa Ibom.

Furthermore, Bello stated that the Act that established the fund was specifically for any state of the federation that suffers absolute decline in its revenue arising from factors outside its control.

He maintained that the stabilisation fund shall in such a case be used to initially augument the allocation to that state in accordance with the acceptable threshold to be worked out by RMAFC.

In a statement, the Public Relations Officer of the commission, Mr Christian Nwachukwu, noted that Bello clarified that those recommendations from the Commission for approval and payment is always in local currency of naira.