The Revenue Mobilisation Allocation and Fiscal Commission says it will constitute a standing committee next week for the review of the revenue sharing formula among the nation’s three tiers of government.

The Chairman of RMAFC, Mr Elias Mbam, who said this in Abuja on Tuesday, added that the planned review was informed by current economic realities.

Mbam spoke to journalists after receiving an Award of Excellence from the Nigeria Civil Service Union.

The RMAFC boss said the standing committee would start work on the proposed review of the revenue formula.

Going by the country’s current revenue sharing formula, the Federal Government receives 52.68 per cent of the national revenue, while the states and the local governments are allocated 26.72 per cent and 20.60 per cent, respectively.

Also 13 per cent of the national oil and gas revenue is allocated to the oil producing states and communities as derivation fund.

The current revenue sharing formula was designed during the administration of former President Olusegun Obasanjo.

The fresh plan to review the formula would not be the first time the RMAFC had undertaken to tinker with the country’s revenue sharing arrangement in recent times.

In 2013 the commission embarked on a nationwide consultation to the 36 states and also met with notable figures in line with a plan to review the formula towards ensuring ‘balanced development’ of the country.

A proposed revised revenue sharing formula was ready by December 2014 but the document was never implemented.

Speaking on the planned review of the sharing formula on Tuesday, Mbam said that RMAFC would also work towards the diversification of the country’s revenue base in order to ensure a more sustainable growth and economic development in the country.

He explained that diversification would be advanced through non-oil sectors such as agriculture, manufacturing and solid minerals.

Mbam said, “My agenda is to expand the sources of revenue for the federation. I will like to expand the cake that we are sharing so that people will get reasonable quantity.I intend to do this through diversification in areas outside oil and gas and that include solid minerals, agriculture and manufacturing.

“So we will encourage states and let them know what is available outside oil and gas so that they can develop other aspects of the economy to their own benefit.”

He stressed the need to revisit the issue of financial autonomy for Local Government Areas.

According to him, financial autonomy for the third tier of government will enable majority of Nigerians at the grass roots to get the best out of democracy.