The federal government has proposed 23.73 per cent revenue allocation to the local governments in the new revenue formula.
The secretary to the government of the federation, Mr. Boss Mustapha, disclosed this at a town hall meeting in Abuja for the review of the vertical allocation to the federal, state and local governments.
Represented by the permanent secretary political and economic affairs in the office of the SGF, Mr. Andrew Adejoh, Mustapha said local governments should get more allocation in the new revenue formula and also recommended a reduction in the vertical allocations to them and state governments.
The SGF said the federal government would take a 3.05 per cent reduction in the allocation from the federation account and 1.1 per cent reduction in the allocation to state governments.
For the local governments, the federal government wants 3.13 per cent added to their monthly take-home from the federation account.
“As an interim and immediate measure, the federal government, is, therefore, proposing the following: federal government 50.65 per cent; state government 25.62 per cent; local government 23.73 per cent and derivation allocation 13 per cent,” he said.
The present vertical revenue allocation formula is federal government, 52.68 per cent; state governments 26.72 per cent; local governments 20.60 per cent and derivation formula 13 per cent.
