NEC approves 0.05% non-oil revenue funding for RMFAC

The National Economic Council (NEC) has approved the allocation of 0.05% of non-oil federation revenue to fund the Revenue Mobilisation and Fiscal Allocation Commission (RMFAC).

The decision was reached during the council meeting presided over by Vice President Kashim Shettima at the Presidential Villa, Abuja, on Thursday.

Governor Chukwuma Soludo of Anambra State, while briefing correspondents, said the funding decision was part of broader efforts to strengthen the commission’s operations and implement tax reforms.

Soludo highlighted that RMFAC, as a vital institution in the Federation, faces challenges of inadequate funding, which hinder its capacity to fulfil its mandate.

“Today, NEC considered a report in response to an earlier presentation by the RMFAC chairman. The report emphasised the commission’s responsibilities and the need for better funding to execute its tasks effectively,” Soludo said.

He further revealed that the council approved two critical recommendations, which include the

forwarding of a draft bill to the National Assembly by RMFAC seeking to repeal and replace the existing Act establishing the commission.

The commission will be funded with 0.05% of non-oil federation revenue, subject to review by the National Assembly, as part of the proposed tax reforms.

Although RMFAC initially requested 0.75% of non-oil revenue, NEC resolved to allocate 0.05%, balancing the need for adequate funding with fiscal prudence.

Governor Soludo emphasised the significance of these measures, saying they would enhance governance and economic stability across the Federation.

The meeting also featured a report from the Ad Hoc Committee on Flood, Erosion, Drought, and Desertification, chaired by Kogi State Governor.

According to the Deputy Governor of Akwa Ibom State, Senator Akon Eyakenyi, who briefed on the matter, the committee presented updates on its activities and recommendations, including financial support for states and disbursement of funds to relevant ministries and agencies to address flood challenges.

The committee’s chairman sought NEC’s approval to wind down its operations and transfer its responsibilities to the Task Force on Flood, Erosion, and Drought Mitigation.

The council commended the committee’s efforts and approved its recommendations, including the disbursement of the remaining funds earmarked for flood mitigation initiatives.

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