Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has said a provision in the Establishment Act 2019 of Police Trust Fund to deduct 0.5 per cent of the total revenue accruing to the federation account as illegal.
It, therefore, objected to the request made by Minister of Police Affairs that his Finance, Budget and National Planning counterpart to make deductions directly from the federation account for the purpose.
A late Wednesday statement from RMAFC said it was copied the letter by the Minister of Police Affairs, Muhammad Maigari Dingyadi in a letter directed to the Ministry of Finance Budget and National Planning to make deductions from the Federation Account for funding of the Nigerian Police Trust Fund citing a constitutional breach in such request.
Chairman of RMAFC, Elias Mbam in his response to the request from the Minister of Police Affairs noted that sources of the Trust Fund which shall consist of the amount consisting 0.5 per cent of the total revenue accruing to the Federation Account is inconsistent with the provision of S.162(3) of the 1999 constitution as amended.
“The S.4 (1) (a) of the Nigerian Police Trust Fund (Establishment) Act 2019 is inconsistent with the provision of the constitution cited above.
“Any law that is inconsistent with the provisions of the constitution of the Federal Republic of Nigeria, that law shall be null and void to the extent of its inconsistency.”
Mbam said the Supreme court has declared funding of the judiciary as a first-line charge on the Federation Account.
“Servicing of external debt as a first-line charge on the Federation Account;
“Funding of joint Venture contracts and NNPC priority project as a first-line charge on the Federation Account;
“Unilateral allocation of 1 per cent of revenue in the Federation Account to the Federal Capital Territory;
“That the only beneficiaries to the federation account are the Federal Government, State Governments and Local Government Councils in each state as provided in S. 162(3) of the constitution of the Federal Republic of Nigeria.
“In the which was signed by the Hon Minister of Police Affairs, Muhammad Dingyadi and directed to the Minister of Finance Budget and National Planning, Mrs Zainab Ahmed, copied to RMAFC, the Honourable Minister of Police Affairs made reference to the establishment act 2019 of Police Trust Fund sources of funding to include 0.5 per cent of the total revenue accruing to the federation account, 0.005 per cent of the net profit of companies operating a business in Nigeria;
“Any take-off grant, special intervention fund as may be provided by the federal, state and local government of the Federation,
“Such money as may be appropriated to meet the objectives of the act by the National Assembly in the budget, aids, grant, and assistance from international bilateral and multinational agencies, non-governmental organisations and private sectors grant, donations, endowment, bequests, and gifts, whether of money, land or any other property from any source and vii. Money derived from the investment made by the Trust Fund.”
Mohammad Maigari went ahead to request that Mrs Zainab should give directive for the deductions of the monthly share of the Police Trust Fund in the Federation Account into a dedicated account as from January 2020.
The Federal Inland Revenue Service (FIRS) to deduct 0.005 per cent of the net profit of the companies operating in Nigeria as stated in the Act effective from January 2020.
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