Revenue Mobilisation Allocation and Fiscal Commission

Last updated
Revenue Mobilisation Allocation and Fiscal Commission
AbbreviationRMAFC
Agency overview
Formed1989
Jurisdictional structure
Federal agency
(Operations jurisdiction)
Nigeria
Operations jurisdiction Nigeria
Legal jurisdictionRevenue mobilisation, Allocation and Fiscal responsibilities
Governing body President 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/

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.

Contents

History

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

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 Buhar i. 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 A building in Abuja.jpg
Headquarters in Abuja

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

Chairman and Members

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
NameState
Chris AkomasAbia
Ayang Sunday OkonAkwa Ibom
Chima Philip OkaforAnambra
Prof. Isa MohammedBauchi
Samuel Adaa MaagbeBenue
Ntufam Eyo Nsa WhileyCross River
Andrew Ogheneovo AgbagaDelta
Patrick MgbebuEbonyi
Victor EboigbeEdo
Amujo Philip AjayiEkiti
Ayogu EzeEnugu
Ayuba NgakoFederal Capital Territory
Mohammed UsmanGombe
Peter OparaImo
Hawa AliyuJigawa
Alhaji Kabir Muhammad MashiKastina
Barr. Umar Farouk AbdullahiKano
Rakiya HarunaKebbi
Hon Suleiman Kokori AbdulKogi
Ismaila AgakaKwara
Wright Olusegun AdekunleLagos
Aliyu A. AbdulkadirNasarrawa
Ibrahim Bako Bagudu ShettimaNiger
Mr.Fari AdebayoOgun
Mr. Tokunbo AjasinOndo
Kolade Daniel AbimbolaOyo
Mr. Alexander ShaiyenPlateau
Wenah Asondu TempleRivers
Bello Abubakar Wamakko mniSokoto
Ahmed YusufTaraba
Alhaji Modu Aji JuluriYobe
Abubakar Sadiq A. GusauZamfara

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

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]

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