Revenue Mobilisation Allocation and Fiscal Commission

The Revenue Mobilization Allocation and Fiscal Commission is an agency of the Federal Republic of Nigeria that oversees the revenues accruing to and disbursement of such funds from the Federal Account. The Body also ensures that there is conformity and equity in the nation's revenue allocation formulae.

Revenue Mobilisation Allocation and Fiscal Commission
AbbreviationRMAFC
Agency overview
Formed1989
Jurisdictional structure
Federal agency
(Operations jurisdiction)
Nigeria
Operations jurisdictionNigeria
Legal jurisdictionRevenue mobilisation, Allocation and Fiscal responsibilities
Governing bodyPresident of Nigeria
Constituting instrument
  • Decree No. 49 of 1989, amended by Decree 98 of 1993 and presently RMAFC Act CAP R7 LFN 2004 under Section 153(1)
General nature
Operational structure
HeadquartersPlot 210, Tafawa Balewa Road, Central Business District, 900103, Abuja
Agency executive
  • Mohammed Bello, Executive Chairman
Website
https://rmafc.gov.ng/

History edit

The agency was set up by Decree No. 49 of 1989 which was later amended by Decree 98 of 1993 and is presently RMAFC Act CAP R7 LFN 2004 under Section 153(1) of the 1999 Constitution of the Federal Republic of Nigeria. The Bill for an Act to Repeal and Re-enact the Revenue Mobilisation Allocation and Fiscal Commission Act, 2023 has passed the second reading in the National Assembly. The new law seeks to strengthen the Commission to carry out its duties of monitoring and disbursement of revenue inflows more effectively.[1] The Commission is one of the fourteen agencies under the Federal Executive Council. The agency has a chairman and 35 members from each State of the Federation and the Federal Capital territory which are all appointed by the President.[2]

Functions edit

The body is charged with reviewing the revenue allocation formula every five years, fixing the salary of political office holders, public officers as well as monitoring the inflow of revenues into the coffers of the nation and blocking leakages.[3] The agency also plays an advisory role to the three tiers of government on fiscal efficiency and avenues through which they can increase revenue accruals.[4] It has recently developed a software to aid the seamless and transparent tracking and sharing of revenue for the three tiers of government.[5] In 2021, the Commission initiated dialogues with government officials and stakeholders as a prelude to modifying the revenue sharing formula in Nigeria.[6] In April 2022, the Commission presented the report to the President, Mohammed Buhari. The report proposed a sharing formula that slashes the allocation of funds to the federal government from 52.68 to 45.17 percent, an increase for States (from 26.72 to 29.79 percent) while the local governments are also projected to have an increase from 20.60 t0 21.04 percent.[7]

 
Headquarters in Abuja

The Commission carries out its duties primarily through the following Constitutional Committees namely;[8]

  • Crude Oil Monitoring Committee
  • Gas Monitoring Committee
  • Indices and Disbursement Committee
  • Federation Account Committee
  • Remuneration and Monetization Committee
  • Mobilisation and Diversification Committee
  • Fiscal efficiency and Budget Committee
  • Investment Monitoring Committee
  • Revenue Allocation Formula Committee
  • Inland Revenue monitoring Committee
  • Customs Revenue Monitoring Committee
  • Solid Minerals Monitoring Committee
  • Central Bank Monitoring Committee

Chairman and Members edit

On June 26, 2019, President Buhari swore in Elias Mbam as the Chairman of the Commission. He also swore in members from different States. [9] On May 24, 2023, he swore in additional members.[10]

Members of RMAFC and their States
Name State
Chris Akomas Abia
Ayang Sunday Okon Akwa Ibom
Chima Philip Okafor Anambra
Prof. Isa Mohammed Bauchi
Samuel Adaa Maagbe Benue
Ntufam Eyo Nsa Whiley Cross River
Andrew Ogheneovo Agbaga Delta
Patrick Mgbebu Ebonyi
Victor Eboigbe Edo
Amujo Philip Ajayi Ekiti
Ayogu Eze Enugu
Ayuba Ngako Federal Capital Territory
Mohammed Usman Gombe
Peter Opara Imo
Hawa Aliyu Jigawa
Alhaji Kabir Muhammad Mashi Kastina
Barr. Umar Farouk Abdullahi Kano
Rakiya Haruna Kebbi
Hon Suleiman Kokori Abdul Kogi
Ismaila Agaka Kwara
Wright Olusegun Adekunle Lagos
Aliyu A. Abdulkadir Nasarrawa
Ibrahim Bako Bagudu Shettima Niger
Mr.Fari Adebayo Ogun
Mr. Tokunbo Ajasin Ondo
Kolade Daniel Abimbola Oyo
Mr. Alexander Shaiyen Plateau
Wenah Asondu Temple Rivers
Bello Abubakar Wamakko mni Sokoto
Ahmed Yusuf Taraba
Alhaji Modu Aji Juluri Yobe
Abubakar Sadiq A. Gusau Zamfara

In April 2022, Elias Mbam left the Commission to contest in the Ebonyi State gubernatorial primaries. Mohammed Bello was sworn as the new Chairman by the President on 16 August 2022.[11]

Following the death of Wenah Asondu Temple, the Commissioner representing RIvers State in the Commission in November, 2023. Desmond Akawor, a former ambassador and former PDP chairman in Rivers State was appointed to replace him.[12] He was officially sworn in on January, 17 2023.[13]

Controversies edit

On 31 December 2021, the National Assembly passed the Finance Act. The agency went to court to seek clarifications as Section 68 of the Federal Inland Revenue Service (Establishment) Act 2007 which was amended by the Finance Act 2021, and Section 89 of the Stamp Duties Act as amended by the Finance Act (2021) as well as Section 4 of the Finance (Control and Management) Act as amended by the Finance Act (2021) appear to have infringed on the statutory functions of the agency. The court case was in view of the provisions of Section 153, 160, 162 and Paragraph 32 of Part 1 of the 3rd Schedule of the 1999 Constitution.[14]

In July, 2022 a High Court in Abuja while receiving evidence on the corruption charges against the former Accountant general of the federation was told how derivation funds meant to be paid to nine oil producing States as part of the revenue accruing to them was diverted and shared to some persons including one of the members of RMAFC.[15]

In June, 2023 the Commission recommended a 114% increase in salaries of political office holders and judges.[16][17] The recommendation was made as the last remuneration review for these groups was made in 2007.[18][19] The recommendation came at the point when the subsidy removal on Premium Motor Spirit (PMS) had hiked transportation costs,[20] organized labour had threatened to embark on an industrial action and there was an ongoing negotiation between the government and organized labour who were agitating for a review of the minimum wage as recent economic policies have whittled down the value of salaries earned by workers. Also, the organized labour were of the view that the recommendation of a 114% increase in the wages of political officer holders will widen the gap between the earning of public servants and that of elected officials.[21] Civil society organisations in Nigeria also opposed the recommended 114% salary increase as they feared it will worsen the economic crisis as well as create more inequalities in the country.[22] [23] However, the Presidency had declared that it was yet to receive the proposal from the Commission or consider it for approval and implementation[24] and labeled the information from the RMAFC as misinformation that should be disregarded.[25]

References edit

  1. ^ Report, Agency (2023-04-05). "RMAFC amendment Bill scales 2nd reading in Senate". Premium Times Nigeria. Retrieved 2023-05-14.
  2. ^ "RMAFC Drags AGF, FIRS, Minister to Court over Finance Act – THISDAYLIVE". www.thisdaylive.com. Retrieved 2022-09-23.
  3. ^ "Top Eight Duties Assigned To RMAFC By President Buhari". Channels Television. Retrieved 2022-09-23.
  4. ^ "RMAFC: Is this a new era? The Nation Newspaper". 2022-09-22. Retrieved 2022-09-23.
  5. ^ Report, Agency (2023-09-17). "RMAFC develops software for improved revenue generation, sharing". Premium Times Nigeria. Retrieved 2024-01-20.
  6. ^ Online, Tribune (2021-08-31). "New revenue sharing formula ready December ― RMAFC". Tribune Online. Retrieved 2022-09-23.
  7. ^ "'45% for FG, 29.7% for states' -- RMAFC presents new revenue sharing proposal to Buhari". TheCable. 2022-04-07. Retrieved 2022-09-23.
  8. ^ "Constitutional Committees | RMAFC". Retrieved 2022-09-23.
  9. ^ "Buhari swears in RMAFC chairman, commission members". The Guardian Nigeria News - Nigeria and World News. 2019-06-27. Retrieved 2022-09-23.
  10. ^ Times, Premium (2023-05-24). "Buhari swears in 7 RMAFC Commissioners". Premium Times Nigeria. Retrieved 2024-01-21.
  11. ^ "Buhari swears in Mohammed Bello as RMAFC chairman". TheCable. 2022-08-17. Retrieved 2022-09-23.
  12. ^ Release, Press (2023-11-23). "Tinubu appoints new commissioner for RMAFC". Premium Times Nigeria. Retrieved 2024-01-20.
  13. ^ Erezi, Dennis (2024-01-17). "Tinubu swears in PDP chairman in Rivers Akawor as RMAFC commissioner". The Guardian Nigeria News - Nigeria and World News. Retrieved 2024-01-20.
  14. ^ "RMAFC Drags AGF, FIRS, Minister to Court over Finance Act – THISDAYLIVE". www.thisdaylive.com. Retrieved 2022-09-23.
  15. ^ Suleiman, Aliyu (2022-07-29). "REVEALED: How ex-AGF Idris shared N84.3bn to RMAFC officials, N/Delta finance commissioners, Yari". 21st CENTURY CHRONICLE. Retrieved 2022-09-23.
  16. ^ "14% salary hike for president, VP, govs, others a proposal – RMAFC - Daily Trust". dailytrust.com. Retrieved 2023-06-22.
  17. ^ "RMAFC: Why We Approved 114% Salary Increase For President, VP, Govs, Others in January - Daily Trust". dailytrust.com. Retrieved 2023-06-22.
  18. ^ "RMAFC Defends Recommendation for 114% Increase of President, Others' Salaries - THISDAYLIVE". www.thisdaylive.com. Retrieved 2023-06-22.
  19. ^ Nigeria, News Agency of (2023-06-21). "FG increases Tinubu's monthly salary to N8.1 million; VP, lawmakers, judicial officers get 114% salary bumps". Peoples Gazette. Retrieved 2023-06-22.
  20. ^ Yusuf, Kabir (2023-06-11). "ANALYSIS: As fuel subsidy goes, Nigerian government must cut cost of governance". Premium Times Nigeria. Retrieved 2023-06-22.
  21. ^ Nigeria, Guardian (2023-06-22). "Proposed 114% pay rise for public officers complicates minimum wage negotiation". The Guardian Nigeria News - Nigeria and World News. Retrieved 2023-06-22.
  22. ^ Telegraph, New (2023-06-22). "CTA Opposes 114% Salary Increment For Govt Officials". New Telegraph. Retrieved 2023-06-22.
  23. ^ "CSO Opposes 114 percent Increase in Salaries of Judges, Politicians, Others". Present Nigeria. 2023-06-22. Retrieved 2023-06-22.
  24. ^ Usigbe, Leon (2023-06-22). "No approval on 114% salary increase for political officeholders — Presidency". Tribune Online. Retrieved 2023-06-22.
  25. ^ Albashir, Saa (2023-06-22). "Presidency denies 114% salary increase, warns against fake news". FRCN HQ. Retrieved 2023-06-22.