. Says Commission deserves better funding
The Centre for Anti-Corruption and Open Leadership (CACOL), on behalf of the Civil Society Coalition Against Corruption, yesterday in Lagos called on President Bola Ahmed Tinubu to give assent to the Bill for an Act to Amend the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) Act, CAP. R7 LFN 2010.
This aims 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 matters related therewith.
The Coalition, which made the appeal in a statement issued and signed by its Chairman, Debo Adeniran, recalled that the 9th Assembly at the twilight of the last administration had passed the Bill that will give the beleaguered Commission a new lease of life which is awaiting the President’s assent.
According to the statement, the Bill as passed by the National Assembly prescribes that the Commission shall be wholly funded by the three tiers of government being beneficiaries of the Federation Account.
The Statement laments that as one of the 14 Executive Bodies recognized by the Constitution, RMAFC is one of the most poorly funded agencies compared to other sister constitutional bodies like Independent National Electoral Commission (INEC), National Population Commission, National Assembly and others that are heavily funded from the national purse.
The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) is one of the Executive bodies 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; and,
- Advise governments at all levels on ways to improve their internally-generated revenues.
It is maladroit to expect a poorly funded organization with ill-motivated staff to perform supervisory functions over well-funded agencies whose staff are adequately remunerated and highly motivated.
Review process
The Coalition Chairman noted that “the review process of the above exercises involves extensive and in-depth research and studies in various areas of our political economy, call for memoranda, consultations, sensitization workshops, collection and collation of data, studies of other similar Federations in respect of fiscal arrangements, public hearings and administration of questionnaires which involves huge expenditure.
“These exercises normally take the Commission to all the 36 states of the Federation and the FCT, as well as the 774 Local Council across the country to sensitize Nigerians to make input into the review process.
“In the area of reducing revenue leakages and enhancing revenue generation, the Commission, has succeeded in expanding the sources of revenue to the Federation Account through the recoveries of hundreds of billions in the recent past.
“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 losses through indiscriminate granting of waivers and tax holidays.”
The Coalition added that one of the major challenges faced by the Commission is the absence of financial autonomy and weak regulatory framework.
This, it said, directly hinders the effective and efficient performance of its operations with annual budgetary allocations for the financing of its activities over the years being grossly inadequate as to protect its independence and cater for its nationwide field operations.
The sensitive nature of the Commission’s role in Nigeria’s fiscal management requires a large measure of independence including financial autonomy.
“It is maladroit to expect a poorly funded organization with ill-motivated staff to perform supervisory functions over well-funded agencies whose staff are adequately remunerated and highly motivated,” it said.
The statement stressed that in view of the overriding importance of RMAFC’s role in stabilizing the nation’s political and socio-economic development since inception, there is the need to adequately fund the Commission through increased budgetary allocation and placement on first line charge.
This is to enable it to effectively supervise revenue generating agencies such as FIRS, NNPCL, Customs as well as carry out its other constitutional duties.
The Coalition also expressed optimism that the Bill when eventually signed by Mr. President will reposition the Commission and give it the needed impetus to perform optimally with the removal of financial, legal and regulatory encumbrances that hitherto made it a toothless bulldog.
