By Kayode Oluwaseun
The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) is an Executive body established by the 1999 Constitution of the Federal Republic of Nigeria (As Amended).
Amongst its fundamental powers and functions are to monitor the accruals of federally-generated revenues to the Federation Account and disburse same to the three tiers of government; review from time to time, the Revenue Allocation formulae and principles in operation to ensure conformity with changing realities, determine remuneration packages appropriate for political, public and judicial office holders as well as advise governments at all levels on the ways to improve their internally-generated revenues.
It is instructive to note that the review process of the above exercises involves extensive and in-depth research and studies in various areas of the country’s political economy, calls for memoranda, consultations, sensitization workshops, data collection and collation, studies of other similar Federations in respect of fiscal arrangements, public hearings, and questionnaire administration, which involves huge expenditures.
It is worth emphasizing that these exercises normally take the Commission to all 36 states of the Federation and the FCT, as well as the 774 Local Councils across the country, to sensitize Nigerians to make input into the review process.
In reducing revenue leakages and enhancing revenue generation, the Commission has succeeded in curbing huge revenue leakages and expanding the sources of revenue to the Federation Account through the recovery of hundreds of billions in recent years.
The revenue-generating agencies the Commission monitors are digitalized using sophisticated revenue collection software. In contrast, the Commission, which is constitutionally mandated to monitor revenue accruals from these Agencies, is still operating manually due to the absence of critical Information and Communication Technology (ICT) infrastructure.
Hence, it is difficult for the Commission to track revenue generated by these agencies online in real time and accurately report to the government. To effectively monitor and prevent revenue leakages, the Commission needs to deploy a robust ICT infrastructure to build and link the internet portal with all Revenue-Generating Agencies for online real-time monitoring.
It is gratifying to note that to ensure synergy in revenue generation, remittance, and monitoring, the Commission also continues to engage critical stakeholders like the Federal Ministry of Industry, Trade and Investment, the Customs Service, Federal Inland Revenue Service, NNPC and its subsidiaries, and the Central Bank of Nigeria to strategize on how to reduce revenue loss through the indiscriminate granting of waivers and tax holidays.
Given the critical role the Commission plays in the nation’s political economy through the statutory allocation of revenue via an equitable revenue-sharing formula to the three tiers of government and fixing remuneration for public, political, and judicial officeholders at all levels of government, RMAFC has enormously contributed to the democratization process, thus encouraging good governance, transparency and accountability and even development in the country.
However, despite its enormous responsibilities and as one of the fourteen (14) Executive Bodies recognized by the Constitution, it is lamentable that RMAFC remains one of the most poorly funded Agencies compared to other sister Constitutional bodies like INEC, National Population Commission, NASS and others that are heavily funded from the national purse.
One of the significant challenges the Commission faces is the absence of financial autonomy and a weak regulatory framework, which directly hinder its operations’ effective and efficient performance. Over the years, annual budgetary allocations for financing its activities must be more robust to protect its independence and cater to its nationwide field operations. The sensitive nature of the Commission’s role in Nigeria’s Fiscal management requires a considerable measure of independence, including financial autonomy.
To guarantee adequate and steady funding and proper enforcement mechanisms through the amendment of the legal and regulatory framework that will strengthen the Commission’s effective functioning, all critical Stakeholders must support the quick passage of the RMAFC Amendment Bill before the National Assembly and the assent of Mr. President when it finally gets to his table. This is because the existing RMAFC Act, CAP R7 LFN 2004, has become obsolete and is now influenced by economic and fiscal realities.
It would be recalled that the 9th Assembly, at the twilight of the last administration, graciously and expeditiously passed the Bill that was expected to give the beleaguered Commission a new lease of life. The 10th Assembly dusted off the old Bill and is now giving it expeditious attention, where it has gone through a second reading and is awaiting the final stage.
The National Assembly and all major Stakeholders believe that since the RMAFC is a creation of the Federation’s Constitution, it is only logical and imperative that the three tiers of government bear its funding requirements instead of the federal government’s current envelope budgetary system.
The proposed Bill calls for an act to amend the Revenue Mobilisation Allocation and Fiscal Commission Act, CAP. R7 LFN 2010 to grant the commission enforcement powers in the monitoring of accruals to and disbursement of revenue from the Federation Account and bring the Act in conformity with the provisions of the 1999 Constitution (as Amended) and for other related matters.
It would be recalled that the Centre for Anti-Corruption and Open Leadership (CACOL) and a coalition of civil societies had in a press statement earlier noted with dismay that, while the Commission continues to discharge its constitutional responsibilities assiduously with little resources, workers and their chief executives in the various revenue generating Agencies it supervises, luxuriate in humungous salaries and allowances driving state-of-the-art cars as official vehicles, working in spacious and well-equipped offices and attending conferences, seminars and retreat abroad all at the taxpayers expenses.
Debo Adeniran, CACOL Chairman, quipped, “In all honesty, how do you expect RMAFC to effectively monitor those Agencies without being ridiculed given the impoverished working conditions of their staff? How can the Commission attract top-rate graduates and experienced hands like those in the MDAs they should oversee? How can they deploy top-notch ICT infrastructure like those obtained in FIRS, Customs, and NNPCL?”
“It is maladroit to expect a poorly funded organization with ill-motivated staff to perform supervisory functions on well-funded agencies whose staff are adequately remunerated and highly motivated.”
The CACOL statement stressed that, given the overriding importance of RMAFC’s role in stabilising the nation’s political and socio-economic development since its inception, the Commission needs to be adequately funded through increased budgetary allocation so as to enable it to effectively supervise revenue-generating agencies such as FIRS, NNPCL, and Customs and carry out its other constitutional duties.
It is the expectation of all that Bill when eventually signed by Mr. President, will reposition the Commission by giving it the needed impetus to perform optimally, removing financial, legal, and regulatory encumbrances that have made it a toothless bulldog that can only bark but not bite.
In order for the Bill to be considered, it is imperative that other critical stakeholders like the National Economic Council, the Nigeria Governors’ Forum, ALGON, the Media, and civil society exert their influence on the Presidency to take necessary action.
Concerned stakeholders strongly believe that Mr. President’s signing of the Bill into law will stop leakages in revenue generation, increase revenues into the Federation Account, and generally promote transparency and accountability in the management of Nigeria’s Commonwealth in consonance with President Bola Tinubu’s Renewed Hope mantra. A stitch in time saves nine.
*Kayode Oluwaseun is a public affairs analyst
