FG inaugurates committee to revenue allocation formula

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Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mr. Elias Mbam yesterday inaugurated the Revenue Allocation Formula Committee (RAFC) to review the current revenue allocation formula.

Currently, 52.68 per cent of federally-collected revenue goes to the federal government while the states and local government areas take 26.72 per cent and 20.60 per cent respectively.

The eight-member RAFC chaired by Mr. Amujo Philip Ajayi with Mr. Suleiman Kokori Abdul as vice chairman is expected to consider a review of the revenue sharing formula for the three tiers of government to reflect current economic realities.

Speaking at the event held in Abuja, Mbam, said the agency is constitutionally empowered to among other duties, monitor the accruals to and disbursement of revenue from the federation account; review, from time to time the revenue allocation formulae and principles in operation to ensure conformity to changing realities; advise the federal, state and local governments on fiscal efficiency and methods by which their revenue can be increased as well as determine remunerations appropriate for political/public office holders.

He said President Muhammadu Buhari had directed the commission to concentrate more on expanding the sources of revenue to the federation account and other non-oil sources, including solid minerals and use all legal ways and means to strengthen the commission’s monitoring mechanism and block leakages of revenue.

Consequently, he said it had become necessary to constitute standing committees to handle all issues pertaining to RMAFC mandate.

“The standing committees would be similar to that of the national assembly. It will be made up of constitutional and in-house committees. The committees shall carry out respectively in-depth study and work on each subject matter.

“The recommendations of the committees shall be forwarded to the plenary session for consideration and possible approval.

“The technical, professional, secretariat and administrative requirements of the committees are to be provided by the secretary to the commission, the various departments, divisions and units as well as zonal/state offices,” he said.

A total of 12 standing committees and six in-house committees were inaugurated by Mbam to pursue and actualise its mandate.

The proposed draft new revenue allocation formula and remuneration packages for political, public and judicial office holders, which had earlier been forwarded by the commission to Buhari during his first tenure for consideration and onward transmission to the national assembly had suffered a setback as the document did not see the daylight.

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