Raheem Akingbolu
If President Bola Ahmed Tinubu assents to the bill for an Act to amend the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) Act, CAP. R7 LFN 2010, the responsibility for the funding of the commission will fall on the three tiers of government –Local Government, State and Federal, a copy of the bill sighted by THISDAY has revealed.
The bill, as passed by the 9th National Assembly was initiated to grant the commission enforcement powers in the monitoring of accruals to and disbursement of revenue from the federation account and bring the act in conformity with the provisions of the 1999 constitution (as amended); and for other matters related.
Meanwhile, the bill appears to have addressed the challenge of financial autonomy and weak regulatory framework, which is believed in some quarters to directly hinder the effective and efficient performance of its operations.
Analysts have consistently opined that annual budgetary allocations for the financing of the commission’s activities over the years has been grossly inadequate as to protect its independence and cater for its nationwide field operations which include monitoring of all revenue generating agencies, data collection, sensitization, advocacy and consultation.
To this end, it has been recommended that the sensitive nature of the commission’s role in Nigeria’s Fiscal management requires a large measure of independence including financial autonomy.
While describing the three tiers of government as beneficiaries of the federation account, the bill stated that, “the commission shall be funded by the three tiers of government and shall establish and maintain a fund which shall consist of and into which shall be credited; a minimum of 0.75 per cent of total Non-Oil Federation Revenue as cost of monitoring which shall be appropriated by the National Assembly for the purpose of the Capital and Recurrent Expenditure of the Commission (subject to Reviews), 10% of all revenues recovered by the Commission and remitted into the Federation Account pursuant to its oversight and monitoring functions, and all sums of money accruing to the Commission by way of grant-in-aid, gifts, endowments and contributions from any donor Agency, among others.”
The bill also plays up the importance roles being played by the commission in the nation’s political economy, through statutory allocation of revenue via an equitable revenue sharing formula to the three tiers of government, which many experts admitted to have enormously contributed to the democratization process, thus encouraging good governance, transparency and accountability in the country.
Specifically, it alluded to Section 162(2) and Paragraph 32(b) Part 1 of Third Schedule to the 1999 Constitution (As Amended) which empowers the commission to review from time to time the Revenue Allocation Formulae and principles in operation to ensure conformity with changing realities and submit its advice to the president who shall table same before the National Assembly for consideration.
The recommendation of the bill aligns with the call by experts on the Tinubu Administration on the need to improve the funding of the commission in view of its diverse activities.
According to those clamouring for more funding of RMAFC, it’s believed that the various review processes of the commission involve extensive and in-depth research and studies on the issues of Revenue Allocation Formula, call for memoranda, consultations, sensitization workshops, collection and collation of data and studies of other similar Federations in respect of fiscal arrangements.
Emerging developments in fiscal studies from a global perspective and experiences in fiscal management have demonstrated that development is not totally based on the quantum of money available to any organisation or country but how well funds are managed for the purposes of creating wealth and the corresponding degree of responsibility being borne by respective governments.
At the twilight of the last administration, the 9th Assembly had passed the bill, which was described as a development that should give the commission a new lease of life.
The Centre for Anti-Corruption and Open Leadership (CACOL), on behalf of Civil Society Coalition against Corruption, on Monday, in Lagos, lamented that as one of the 14 executive bodies recognised by the constitution, RMAFC is one of the most poorly funded, compared to sister bodies like Independent National Electoral Commission (INEC), National Population Commission, National Assembly and others.
RMAFC had last year asked for a joint funding with the federal, state and local governments for improved performance, when its chairman, Muhammad Shehu, appeared before the house of representatives committee on finance, to defend the budget proposed by the commission in the 2023 appropriation bill in.
Shehu said the commission ought to have joint funding with the federal, states and LGAs, as it does not just work for the federal government alone, but also for the federation.
