RMAFC’s New Funding: A Strategic Safeguard for Nigeria’s Democracy and Federalism

By Ibrahim Mohammed PhD

Last week, one of Nigeria’s most celebrated columnists, Waziri Adio published a commentary on the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC), casting the agency’s new funding arrangement and budgetary expansion in a suspicious light. While the piece was elegantly written, it betrays a fundamental misreading of history, constitutional design, and Nigeria’s present fiscal challenges. It is important, therefore, to set the record straight and disabuse the minds of policymakers and citizens of the ill-conceived narrative that RMAFC’s new resources amount to a “jackpot” or a theatre for profligacy.

The Vision of Our Founding Fathers…

Nigeria’s founding fathers and nationalists, in crafting our federal arrangement, understood that revenue is the lifeblood of the state and that its distribution, if mishandled, could imperil national unity. This is why lately, the 1999 Constitution, like previous constitutions, elevated RMAFC to the status of a permanent body in the Third Schedule—making it one of only 14 constitutional executive bodies. Its role is unique: to monitor accruals to and disbursements of revenue from the Federation Account, to review the revenue allocation formula periodically, and to ensure equity and accountability in the sharing of our commonwealth.

This is not a minor task. In fact, the commission was conceived as the referee of Nigeria’s federal compact, an instrument to safeguard democracy and prevent fiscal domination by any arm or tier of government. To weaken such an agency through under-funding is to hollow out the very guardrails of our federal system.

The Cost of Past Incapacitation…

The truth is that for decades, RMAFC was starved of resources and therefore unable to fully perform its oversight mandate. This vacuum had catastrophic consequences. Because RMAFC could not effectively monitor accruals and disbursements, most of the revenue generating agencies operated in opacity, unchecked.

The combined effect of these failures crippled Nigeria’s economy, stunted diversification, and left the Federation Account perpetually in crisis. All of these were consequences of an incapacitated RMAFC that lacked the manpower, technology, and independence to hold powerful revenue-collecting agencies accountable.

Why the New Funding Is Justified…

Against this background, the recent reforms to RMAFC’s funding are not a “jackpot” but a long-overdue course correction. By granting the commission a statutory 0.5% of non-oil revenues as a first-line charge, Nigeria has finally given its constitutional revenue referee the oxygen to breathe.

Three key justifications stand out:

1. Predictability and Independence: No serious democracy starves its revenue watchdog. By guaranteeing stable funding, RMAFC can resist political interference and carry out its constitutional duties without begging from the same institutions it is meant to supervise.
2. Capacity to Deploy Modern Tools: Monitoring revenue flows in today’s complex global economy requires advanced technology—real-time dashboards, forensic audit systems, and cross-border data analytics. These cannot be procured on a shoestring budget of ₦2–3 billion a year. The new funding ensures that RMAFC can finally modernise its oversight arsenal.
3. Safeguard for Federalism: At a time when debates about restructuring, fiscal federalism, and equitable distribution are intensifying, empowering RMAFC is the surest way to preserve national cohesion. Without a trusted, well-funded referee, the fragile balance among federal, state, and local governments could collapse, undermining democracy itself.

Correcting the Misconception on Budget Growth…

Critics point to the sharp rise in RMAFC’s budget from ₦5.6 billion to over ₦100 billion as evidence of waste. This is misleading. The so-called “leap” is not arbitrary but the logical outcome of aligning the commission’s funding with Nigeria’s revenue realities. It must be stressed that RMAFC’s absorptive capacity will grow in phases, but a foundational resource base is necessary before meaningful oversight can occur.

Moreover, capital expenditure—often caricatured as “splurging”—is essential for building data centres, monitoring hubs, and deploying staff nationwide to track revenues at source. Unlike personnel and overheads, these investments will yield long-term dividends for accountability and transparency.

In line with this vision, the management also intends to develop a 21st-century workforce through its own tailor-made training institute. This institute will equip individuals with the necessary know-how and technology-driven skills to effectively compete with the skilled professionals in Nigeria’s leading revenue agencies. The ultimate aim is to ensure proper accountability and transparency in government operations, while fully supporting Mr. President’s vision as outlined in the creation of the new “Nigeria Revenue Service.”

Furthermore, global experience validates this approach. In other climes—whether it is the Internal Revenue Service (IRS) in the United States, the Canada Revenue Agency (CRA), or the South African Revenue Service (SARS)—financial autonomy for revenue oversight bodies has been the turning point. With stable and independent funding, these agencies deployed modern technology, attracted top professionals, and successfully blocked leakages. The result was not waste but a boost in national incomes and enhanced fiscal sustainability. Nigeria must learn from these examples by empowering RMAFC to perform its constitutional role with similar strength and independence.

Lessons from History…

Nigeria’s past teaches us that underfunded watchdogs become toothless bulldogs, paving the way for looting. The Public Complaints Commission, the Fiscal Responsibility Commission, and even the Auditor-General’s office remains weak today because they were never given sufficient autonomy and resources. In contrast, anti-corruption agencies like EFCC and ICPC only began to bite when they were given stronger budgets.

RMAFC now has a chance to break free from that vicious cycle. Rather than demonising its new funding, Nigerians should insist on transparency in its spending while supporting its constitutional mandate to safeguard our collective patrimony.

A Call for Perspective…

Revenue distribution is indeed a zero-sum game, as Adio noted. But the real zero-sum tragedy would be to starve the nation’s revenue referee, thereby leaving unchecked the very agencies that have historically mismanaged trillions of naira. Empowering RMAFC is not about enriching an institution; it is about protecting the Nigerian people from the corrosive effects of corruption, fiscal imbalance, and elite capture.

Conclusion…

Our nationalists did not create RMAFC as an ornament. They created it as a bulwark for federalism and accountability. For too long, it was left to wither, and Nigeria paid dearly for that neglect. The new funding model is not perfect, but it is the surest path to reviving an institution that can save our democracy from fiscal predation.

Let us therefore embrace this reform, support Mr. President in this world class approach to consolidating our democratic dividends, demand responsible utilisation of resources, and allow RMAFC to finally play its constitutional role as the honest referee of Nigeria’s revenue game. Anything less would be a betrayal of the vision of our founding fathers and a surrender to the chaos of the past.

Mohammed, a communications expert, contributes this from Abuja