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The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) says there is currently no evidence to support the allegation that some state governments are diverting funds allocated to local governments.
Mr Bimbo Kolade, chairman of the Committee on Inland Revenue Services at RMAFC, stated that while such stories of diversion were frequently heard, they remained largely unsubstantiated.
“These are mostly street stories. We hear of such claims, but there has never been concrete evidence presented to the commission that proves any specific case of diversion.”
Kolade, however, acknowledged growing public concern about the transparency of local government funding and the need for better monitoring of allocation utilisation at the grassroots level.
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According to him, under the current arrangement, local governments still receive their allocations through state governments.
This system has often attracted criticisms from Civil Society Organisations and development advocates.
However, Kolade said that the constitutional mandate of RMAFC was limited in this regard, noting that, “Our primary role is the distribution of revenue from the federation account.”
