The Executive Director of Foundation for Peace Professionals also known as PeacePro, Mr. Abdulrazaq Hamzat, has called for a major overhaul of Nigeria’s current revenue sharing formula, advocating for a system that is based on productivity rather than population.
Hamzat made the call in a press statement commenting on the ongoing Tax Reforms Bill, emphasizing that the shift is crucial to driving sustainable economic growth, reducing regional disparities, and fostering accountability in governance across Nigeria.
“For too long, Nigeria’s revenue sharing system has been skewed towards population size, rewarding states based largely on demographic figures rather than their actual contribution to the national economy.
“This system has created an unsustainable reliance on federal allocations and undermined the incentive for state governments to develop productive, self sustaining economies,” he said.
Hamzat stated that a productivity based revenue sharing model would create a direct link between a state’s economic output and the revenue it receives, incentivising local governments to prioritise infrastructure, industry, and job creation.
He argued that the current model has inadvertently favored states with large populations, regardless of their economic activity, while those with greater productive potential remain underfunded.
He stated further that it would encourage leaders to focus on job creation, sustainable industries, and improved governance rather than relying on federal handouts.
Hamzat called for a national dialogue on the future of Nigeria’s revenue sharing system, stating the need for inclusive policies that reflects the diverse economic capacities of Nigeria’s 36 states.
