The House of Representatives, yesterday, initiated a legal framework for restructuring distributable revenue to the three arms of government.
The resolution came following passage through second reading of a bill for an act to amend allocation of revenue (Federation Account etc), Act Cap., A15 Laws of the Federation of Nigeria, 2004 to establish the excess revenue fund account and for other related matters (HB. 1277).
The bill was sponsored by Hon. Lovette Idisi (PDP, Delta). It came on the heels of criticism over the legality of the proposed withdrawal of $1 billion from Excess Crude Account (ECA), for the procurement of arms to fight Boko Haram. Leading debate on the bill, Idisi noted that the “allocation of revenue Act was established in 1982 to prescribe the basis for distribution of revenue accruing to the Federation Account between the Federal and state governments and Local Government councils in the states; the formula for distribution amongst the states; the proportion of the total revenue of each state to be contributed to the state joint Local Government Account.”