A statement issued in Abuja by Chairman, Public Affairs and Communication Committee, RMAFC, Ambassador Zubairu Dada, said the draft would now be forwarded to President Goodluck Jonathan in accordance with the provisions of the constitution.
It is the responsibility of the President to lay the new formula before the National Assembly for necessary legislation.
Dada said members of the commission unanimously adopted the draft report following a two-week retreat at Tinapa, Cross River State, where all the submissions, relevant documents and inputs from stakeholders were analysed and considered.
The commissioners had met from November 23 to December 7 to brainstorm on the revenue allocation formula draft report.
The commission had previously embarked on a tour of the federation, sensitisation visits to states, consultations, public hearings and extensive study of all relevant literature and fiscal matters relating to revenue allocation in an effort to make the final report credible, authentic and generally acceptable to Nigerians.
Dada explained that the last time the revenue allocation formula was generally reviewed was in 1992, adding that the current revenue allocation formula arose from the modification order issued by former President Olusegun Obasanjo in May 2002, which was amended in July 2002 and January 2004.
He said, “The order, which emanated from the Supreme Court judgment of April 5, 2002, was to bring the relevant sections of the subsisting Allocation of Revenue (Federation Account, etc) Act in conformity with the provisions of the 1999 Constitution (as amended) of the Federal Republic of Nigeria.
“It was, therefore, necessary to review the present revenue allocation formula to reflect changing realities and the yearnings and aspirations of Nigerians.”
He added that the need for distributive justice, fairness and equity in the allocation of resources as enshrined in the 1999 Constitution guided the review exercise.
According to him, the basic principles taken into cognisance include the indivisibility of the country, public opinion and weighted constitutional responsibilities and functions of the three levels of government.
The PAAC chairman commended members, management and employees of the commission, the West African Institute for Financial and Economic Management, the lead consultant of the review exercise, and all stakeholders who contributed to the process of the review for their painstaking efforts and sacrifices.
Dada said the draft report was a product of careful analysis and examination of the diverse views of the Nigerian people.
The revenue sharing formula, which has remained a controversial subject in the Nigerian federation, refers to the proportion of resources accruing to the federation that goes to each of the three tiers of government.
It also defines the proportion of resources that must be retained in the territories where they are generated as well as what goes to the agencies of government that collect the revenues on behalf of the federation.