New Revenue Allocation Formula Long Overdue, RMAFC Tells FG, NASS

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has reminded the federal government and the National Assembly (NASS) that the current revenue allocation formula has been there for over 16 years in violation of the five years constitutional provision.

This was one of the core issues concerning the nation’s economy canvassed by the Chairman of the Commission, Mohammed Bello Shehu, and other conferees at the just concluded Retreat for newly appointed federal commissioners of RMAFC held at the Ibom Icon Hotel and Golf Resorts, Uyo, the Akwa Ibom State capital.

The communique signed by the RMAFC boss, Shehu, and Secretary, Nwaze Joseph Okechukwu, noted that the delay in the implementation of the new revenue allocation formula stemmed from the National Assembly’s inability to amend the relevant aspect of the constitution to specify the time frame within which  the President, Bola Tinubu, should transmit the RMAFC proposal for consideration.

The Commission, therefore, appealed to the President to impress on the NASS for urgent action on the relevant aspect of the constitution to enhance speedy implementation of the new revenue allocation  and wage regime.

The communique reads: “In line with the constitutional provision, the Commission should review the revenue allocation formula statutorily every five years.

“Section 162 (2) of the constitution should be amended to specify the time frame that the President will present the proposal of the RMAFC on the review of Revenue Allocation Formula to the National Assembly upon receipt from the Commission;

“There should be constitutional amendment to allow the inclusion of the local government Chairmen and Councillors among the beneficiaries of the remuneration package listed in the 1999 constitution of the Federal Republic of Nigeria as amended;

“Section 162(6) of the constitution should be amended to ensure that the allocations of the Local Governments are paid directly to them from the Federation Account in line with the Supreme Court ruling delivered on July 11th, 2024 on LGAs financial autonomy.”

Participants including the representatives of the vice president, chairman of the Governors’ Forum, and others  tasked the Commission to “intensify its constitutional mandate of monitoring revenue accruals to ensure that all revenues due to the Federation Account are remitted accurately and promptly by the revenue generating agencies.”

They also charged RMAFC to establish a National Revenue Dashboard (NRD) to interface with all the revenue generating agencies for digital real-time monitoring of revenue inflows from them.

“The RMAFC should put in place mechanisms to enhance its function in the area of fiscal management as it relates to advisories on revenue, expenditures and debt management.

“The Commission should advocate for the amendment of relevant section of PIA to enable the expansion of the present Board of the Nigeria National Petroleum Company Limited to include the representatives of some major stakeholders such as the State, Local Government, CBN, etc.; and

“The Office of the Accountant General of the Federation to be created and domiciled at the RMAFC which is a Federation Agency,” were other resolutions reached at the summit.