RMAFC Proposes Five-Year Review of Nigeria’s Revenue Allocation Formula

Constitutional Amendments and Financial Autonomy Recommendations

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has proposed significant changes to Nigeria’s financial governance framework, including a mandatory five-year review of the nation’s revenue allocation formula to align with constitutional provisions.

Key Recommendations from Uyo Retreat

During a three-day retreat in Uyo themed “Understanding the Role of Revenue Mobilization and Fiscal Commission and other Stakeholders/Agencies in Nation Building,” the commission made several critical recommendations:

1. Constitutional Amendments: RMAFC called for including local government chairmen and councillors as beneficiaries of the remuneration package specified in the 1999 Constitution (as amended).

2. Timely Implementation: The commission sought amendment of Section 162(2) to establish clear timelines for presidential submission of revenue allocation proposals to the National Assembly.

3. Financial Autonomy: In line with the July 11, 2024 Supreme Court ruling, RMAFC recommended amending Section 162(6) to ensure direct payment of Local Government allocations from the Federation Account.

Modernizing Revenue Monitoring

The commission proposed establishing a National Revenue Dashboard for real-time digital monitoring of revenue inflows across all generating agencies. This technological solution aims to enhance transparency and accountability in revenue collection.

Structural Reforms

RMAFC advocated separating the Office of the Accountant General of the Federation from the Federal Government counterpart, suggesting the former should be domiciled within RMAFC as a federal agency.

Urgent Need for Formula Review

Dr. Mohammed Shehu, RMAFC Chairman (represented by Ismail Agaka), emphasized the urgency of reviewing the current 16-year-old allocation formula to reflect contemporary realities. The commission reaffirmed its commitment to monitoring revenue accruals and ensuring prompt remittances to the Federation Account.

RMAFC also pledged to strengthen its fiscal management advisory role regarding revenue, expenditures, and debt management, demonstrating its commitment to Nigeria’s financial stability.

Full credit to the original publisher: The Guardian