The pan-Yoruba organization, Afenifere Renewal Group (ARG) on Monday described the current revenue allocation formula by which the Federal Government gets over 50 per cent of centrally-collected revenue in the

Federation Account as lopsided.

The group which made this observation in the presentation at a two-day South-West Zone public hearing on the proposed review of revenue allocation formula organized by the Revenue Mobilization, Allocation and Fiscal Commission (RMAFC) held at the International Conference Centre, University of Ibadan, maintained that the formula had  created a glaring and unacceptable imbalance in the financial resources of the three tiers of government.

While expressing its recognition of the fact that revenue adequacy is central to the existence and functioning of a Federal Government, the federating States and their local constituents, it maintained that the lopsidedness of the current formula made it unacceptable.

The group lamented that the formula had also adversely affected the delivery of core social services and infrastructure development where they matter most.“This, alongside associated economic and political factors, has led to a situation in which State and Local Governments are dependent on Federation Account Allocations, with many States not financially stable and viable, as they find it challenging to maintain efficient and effective public services.

“This dependency relationship is also a destructive factor to our federal system,as the autonomy of State Government, which presupposes its developmental responsibilities, is essential to a true federal arrangement”, the group noted. Recalling that from 1960 till date, the revenue allocation system in Nigeria “has not been efficient or equitable", it expressed concerned about the imbalance and lopsidedness associated with the Nigerian revenue allocation formula as it has led to lack of sustainable development.”

It recommended the adoption of the definition of 'fiscal federalism' as a set of principles that could be applied in attaining true federalism and fiscal

decentralization.

“Fiscal Federalism, just as true federalism, should be an over arching formative framework in Nigeria for assignment of functions to the different levels of government with the appropriate fiscal instruments for carrying out these functions.“The underpinning principles that inform our recommendations are that every one of the Nigerian constituent units should be opportune to aspire to achieve its highest potentials within the Nigerian Nation without hindrance “Governments at various levels are held in trust and should be accountable to the people, while more resources should accrue to those tiers of government that are closer to the grass roots for the purpose of rapid development," it added

According to the group, revenue allocation should be done transparently and in a manner widely accepted by the generality of the people of the Federating Units.It added that allocation should be able to provide each of the stakeholders with, at least a minimum level of funds in the light of their responsibilities, current level of development and developmental aspirations.