PEACEPRO DIRECTOR, ABDULRAZAQ HAMZAT ADVOCATES FOR REVENUE SHARING BASED ON PRODUCTIVITY NOT POPULATION
By Olayiwola Ibrahim // 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.
Mr. Hamzat made this call in a press statement commenting on the ongoing tax reforms bill, emphasizing that this shift is crucial to driving sustainable economic growth, reducing regional disparities, and fostering accountability in governance across Nigeria.
According to Hamzat, the tax reform should be broad and all encompassing, rather than limited to peripheral changes that doesn’t address the fundamentals of the Nigerian economy.
For too long, Nigeria’s revenue sharing system has been skewed toward population size, rewarding states based largely on demographic figures rather than their actual contribution to the national economy, Mr. Hamzat stated.
This system has created an unsustainable reliance on federal allocations and undermined the incentive for state governments to develop productive, self sustaining economies.
Mr. Hamzat pointed out that a productivity based revenue sharing model would create a direct link between a state’s economic output and the revenue it receives, incentivizing local governments to prioritize infrastructure, industry, and job creation.
He further 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.
States with abundant natural resources, robust agricultural sectors, or strong industrial bases should be rewarded for their contributions to national revenue.
On the other hand, states that have failed to diversify their economies or foster meaningful economic development should be motivated to do so in order to secure a fair share of the national revenue pool, he added.
Mr. Hamzat also noted that the shift to a productivity based system could help reduce corruption by ensuring that states are rewarded based on the efficiency of their governments and the economic output of their citizens.
He argued that it would encourage leaders to focus on job creation, sustainable industries, and improved governance rather than relying on federal handouts.
However, he acknowledged that such a shift would require substantial reforms and careful consideration to ensure equity across regions.
We must be mindful of the challenges facing states that have been historically marginalized or lack the resources to kickstart significant economic productivity.
These states should not be left behind. Therefore, the government must create mechanisms to support lagging regions, while rewarding high performing states.
In conclusion, Abdulrazaq Hamzat called for a national dialogue on the future of Nigeria’s revenue sharing system, emphasizing the need for inclusive policies that reflect the diverse economic capacities of Nigeria’s 36 states.
He urged FG, policymakers, economists, and stakeholders from all regions to come together to craft a revenue sharing framework that is both fair and motivational.
PeacePro stands ready to contribute to the national conversation and provide a platform for constructive engagement on this critical issue.
Our goal is to build a more productive, prosperous, and equitable Nigeria, where every state has the opportunity to thrive based on its abilities, not just its population size.
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