House Of Reps Propose Upward Review Of Derivation Fund From 13 To 20 Per Cent

 

The House of Representatives will on resumption from the Easter recess, commence debate on the general principle of a bill which seeks to increase 13 per cent derivation fund to 20 per cent. The private member bill was sponsored by Hon Kingsley Chima.

According to the ‘Explanatory Memorandum’, the proposed bill “seeks to alter Section 162(2) of the Constitution of the Federal Republic of Nigeria, 1999 as amended, in order to cure the inherent imbalance and insufficiency of fund and development-driven agitations based on the revenue from natural resources.”

In line with the legislative principles, the bill is to be referred to the Special Ad-hoc Committee on Constitutional Amendment chaired by the Deputy Speaker, Hon Idris Wase, for further legislative action.

Clause 2 of the Bill seeks to amend segment 162(2) gives that: ‘The President, upon the receipt of recommendation from the Revenue Mobilisation, Allocation and Fiscal Commission, shall table before the National Assembly proposals for revenue allocation from the Federation Account, and in determining the components, the National Assembly shall don't forget, the allocation ideas especially those of population, equality of States, inner revenue technology, landmass, terrain in addition to population density: Provided that the precept of derivation will be continuously contemplated in any approved formulation as being not much less than 13 per cent of the revenue accruing to the Federation quantity immediately from any herbal assets.’

The proponent of the bill, however, proposed that: “The President, upon the receipt of recommendation from the Revenue Mobilisation Allocation and Fiscal Commission, shall desk earlier than the National Assembly proposals for sales allocation from the Federation Account, and in figuring out the formulation, the National Assembly shall remember, the allocation standards specifically the ones of population, equality of States, internal revenue generation, landmass, terrain as well as population density: supplied that the precept of derivation will be constantly meditated in any approved formulation, as being no longer less than ‘twenty in line with cent’ of the revenue accruing to the Federation Account at once from any natural assets.