Cross River State Governor, Senator Bassey Otu, has called for a thorough review of the nation's revenue allocation formula to address what he described as a long-standing injustice against the state and to reflect current realities.
Governor's Appeal to RMAFC
Speaking on Friday when he received a delegation from the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) at the Government House in Calabar, Governor Otu, represented by his deputy, Rt. Hon. Peter Odey, urged the commission to ensure that its ongoing review leads to a more equitable allocation framework for Cross River State.
Governor Otu noted that the current allocation from the Federation Account is insufficient to meet the state's growing developmental needs, despite his administration's commitment to governance and infrastructure development. He pointed out that Cross River remains among the lowest recipients of federal allocations, a situation that does not reflect present realities.
Need for Comprehensive Reassessment
The governor stated that the commission's visit presents a unique opportunity to reposition Cross River within the national revenue-sharing structure. He recalled that since the last major review of the allocation formula in 2012, significant demographic and economic changes have occurred, including population growth, an expanded workforce, and increased demands for infrastructure and social services.
Otu further argued that these realities, coupled with the adverse impact of the loss of oil wells on the state's revenue base, underscore the need for a comprehensive reassessment of the state's allocation profile. Such a review, he said, would better support the state's development aspirations and align with the 'People First' mantra of his administration.
RMAFC Delegation's Mission
Earlier, the leader of the RMAFC delegation and Federal Commissioner representing Ebonyi, Mr. Nduka Awuregu, explained that the team was in Cross River as part of the commission's nationwide National Data Verification Exercise. The exercise aims to review and update data used for revenue allocation to states and local governments.
Awuregu stated that the exercise, which began in April, is being conducted across the six geopolitical zones in line with the commission's constitutional mandate to periodically review the revenue allocation formula and ensure it reflects current realities.
Commendation for Cross River Government
The RMAFC commissioner commended the Cross River government for its cooperation and support throughout the exercise. He noted that the team successfully visited schools, hospitals, and other public facilities to verify existing data. Awuregu particularly lauded the state's progress in digitalization, the efficiency of its financial management team, and its notable improvements in the education sector. He described the level of collaboration received from government officials as exemplary.
Awuregu expressed confidence that the verified data would receive thorough consideration by the commission and would positively influence the state's allocation profile where necessary. He also praised the governor for the prudent management of state resources, adding that the team was impressed by the developmental strides recorded despite fiscal constraints.
