Revenue allocation formula not reviewed in 29 years ― RMFAC new boss

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3 years ago

RMAFC Chairman, Mohammed Bello Shehu

President Muhammadu Buhari has sworn into office the new chairman of the Revenue Mobilisation and Fiscal Allocation Commission (RMFAC), Mohammed Bello, who revealed that despite the changing circumstances of the country, the revenue allocation formula has not been reviewed in 29 years.

The new boss of the commission told correspondents after the brief swearing-in ceremony at the Presidential Villa, Abuja on Wednesday that this is in spite of the provision of the Constitution prescribing that it should be reviewed every five years.

He added that the development has given rise to agitation in certain quarters, particularly among political office holders.

Bello affirmed that the task ahead of the commission is challenging but assured that it will assist the present administration to get more revenue for the Federation by blocking leakages while implementing the constitutional responsibility.

These, he said, include monitoring of accruals to the federation account and disbursement; monetisation, and taking care of the salaries of political office holders, and judicial officers.

The RMFAC boss said: “The task is challenging. We all know the situation that Nigeria is, or even globally when you look at contemporary African countries like South Africa, Ethiopia, Ghana, Egypt, and all the economic issues that are facing including Nigeria.

“We had the COVID-19, we had a recession, we now have the war with Ukraine, which has affected many countries and revenues are down all over.

“So, our task, as revenue mobilisation is how we can assist Mr President, to get more revenue for the Federation, block leakages, looking at the constitutional responsibility of the Commission, which of course are, monitoring of accruals to Federation account and disbursement, and also monetization, taking care of the salaries of political office holders, and judicial officers, as enshrined in the Constitution that had not been reviewed since 2008. And I think there is agitation for that.

“And also, from time to time, come up with a new revenue allocation formula, which the commission successfully did, sometimes I think, in February this year, and we have submitted our report to Mr President.

“What he stated at that time was that he was waiting to see what the National Assembly will do in terms of looking at the concurrent list and exclusive list and constitutional amendment.

“If he’s satisfied with what the National Assembly does, he will forward a recommendation and make it an Act so that it becomes a law.

“Revenue allocation formula had not been touched for about 29 years, the Constitution says after a period of five years it can be reviewed, looking at the circumstances of the country. You know, more states have been created.

“And also our other responsibility, like monitoring of Central Bank of Nigeria (CBN), Ministry of Finance, Customs, Nigerian National Petroleum Company Limited (NNPCL).

“Those are huge tasks for the commission. And of course, don’t forget that revenue mobilization is also a statutory member of the Joint Tax Board, local government joint account, ecological fund and Niger Delta Development Commission (NDDC).

“Our task is how we can get more revenue for Mr President. I know there is a lot of debate on whether there is an operating surplus like some of the agencies of government will claim that what they are getting is a surplus of revenue. Revenue is revenue as far as the commission is concerned.

“So, my task is to get our members to respond to the task that Mr President gave them in 2019 when he swore in the new board that try as much as possible to get more revenue and strengthen your monitoring mechanism.

“That is what we are going to do with all the stakeholders Federal Inland Revenue Service (FIRS) and Nigerian National Petroleum Company Limited (NNPCL), Federal Ministry of Finance, and every revenue generating agency. We have to collaborate and corroborate to be able to assist Mr President to get more revenue before he leaves office. This is a task that should be done by every meaningful member of the commission.”

On his assurances, as he assumes office, Bello stated: “Well, I can assure him (President Buhari) that the commission, as one of the 14 constitutional Commissions, will do whatever it takes to assist him to look for more revenues before he leaves office. And also we will maintain our independence like it had been enshrined in the Constitution.”

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