Constitution amendment: State Assemblies’ action delaying new revenue allocation ― RMAFC

Chairman of Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Alhaji Mohammed Shehu on Thursday disclosed that the prolonged delay of the passage of the 1999 Constitution by the State Houses of Assembly is responsible for the approval of the new revenue allocation for the three tiers of government.

Alhaji Shehu who disclosed this in Abuja during an interactive session with the Speaker of the House of Representatives, Hon. Femi Gbajabiamila solicited the support of the National Assembly towards strengthening the Commission in a bid to block leakages and revenue losses.

According to him, paragraph 32 a-e part 1 of the third schedule of the 1999 Constitution (as amended) empowered the Commission to monitor the accruals and disbursement of revenue from the Federation Account.

“Secondly review from time-to-time revenue allocation formula and to conform with current realities provided that any formula which has been accepted by an Act of the National Assembly from a period not less than five years from the date of the commencement of the Act.

“Starting last year down to April this year, the commission was able to do the process halfway. A report was forwarded to Mr President and at the time when Mr President received the report, what he indicated was that he was waiting for the outcome of the constitutional amendment which was sent to various State Assemblies for agreement and ratification.

“You are also aware that he also stated that he was looking to see the responsibility of each tier of government that is the state and the federal government on a concurrent list and exclusive list. So that we are awaiting the outcome of that and we hope that Mr. speaker will be able to push for various constitutional amendments so that this Act can be passed by your leadership because you are aware that its almost 29 years and what we are using currently is the modification Act of about 1992 or so,” he noted.

On the determination of appropriate remuneration for political office holders including the President, Vice President, Governors and Judicial officers, he disclosed that “this is a burning issue in the national discourse. The commission on its part has started the process. We have applied for support financially and very soon you will see advertisements in the national dailies and TV you will see us trying to see how we can do this process and complete it before the end of the tenure of Mr President, and we are looking for your support Sir.”

He argued that it has been a herculean task for the Commission to extract information from key revenue-generating agencies including Nigeria Communications Commission (NCC), Central Bank of Nigeria (CBN), and Nigerian National Petroleum Corporation (NNPCL).

“To demand and obtain regular and available information, data or returns from any governmental agency including the reformed NNPC which is now Nigerian Upstream Petroleum Commission, the Federal Inland Revenue, the Nigerian National Petroleum Corporation Limited (NNPCL), Nigerian Customs Service, the Central Bank of Nigeria, and the Ministry of Finance.

“In pursuant of the above mandate, the commission achieved the following: the commission recovered over N120 billion as unremitted revenue from the public through the engagement of consultants for a period of 2016 and 2019.”

While noting that the Commission is having difficulty in accessing relevant information from some federal establishments, he said: “the Act says we can get information from any agency of government. But somehow you know this is a very difficult exercise because some of the agencies like NPA, NIMASA, NCC and others hardly cooperate because there is no mechanism for sanction if they refuse to cooperate for enforcement.

“But I’m happy to say that in the proposed amendment to the constitution, that the Senate and Lower House there is a provision for that and we are hoping that when the exercise is done and finished this thing will be something that will enhance and strengthen the commission.

“So, we are appealing to you to facilitate this amendment so that we can strengthen the operation of the commission to meet up with the changing realities and also enforcement power to recover loss and unremitted revenue to the Federation Account and also block leakages.

He also stressed the need for a “proper monitoring mechanism of all relevant agencies using modern technology like we should be able to see when revenue is dropping in the coffers of customs, FIRS, even Central Bank and some other agencies of government, and I think this will reduce the colossal amount of revenue that is being lost through leakages.

“Because various agencies will end up giving the information that they want to give and before you could get somebody to talk to them to enforce this thing, years and years have gone,” the RMAFC Chairman noted.

In his remarks, the Speaker, Hon. Femi Gbajabiamila who underscored the importance of revenue generation for national development, harped on the need for effective and prudent monitoring and prudent spending.

While responding to the issue of the ongoing amendment to the 1999 Constitution, he assured that the State Houses of Assembly are working on the process, adding that the National Assembly is “still waiting on few states. We only have only one-third come through and we are still waiting for others. We will put pressure so that we can move forward with this. Because it appears this is what is delaying further action. And the President has made that very clear that that is the only thing he’s waiting on.”

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