From Isaac Job, Uyo
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has called on the Federal Government to urgently review the revenue allocation formula to reflect changing realities as mandated by the 1999 Constitution of Nigeria (as amended).
The Commission also identified legal constraints hindering the implementation of the Supreme Court’s July 11, 2024, ruling on local government financial autonomy, particularly due to Section 162(6), which establishes the State Joint Local Government Account.
In a communiqué issued on Thursday, May 1, 2025, at the end of a three-day retreat for newly appointed members and staff in Uyo, Akwa Ibom State, RMAFC Chairman Dr Mohammed Bello Shehu and Secretary Engr Joseph Okechukwu, read by Hon Ismail Agaka, outlined key challenges.
The retreat, themed “Understanding the Role of RMAFC and Stakeholders in Nation Building”, noted that local government chairmen, councillors, and other political office holders are not listed in the Constitution as beneficiaries of RMAFC-determined remuneration packages.
The communiqué stated: “There are legal constraints affecting the implementation of the Supreme Court ruling that revenue allocations due to Local Government Councils should be paid directly to them from the Federation Account due to the provision of Section 162(6) of the 1999 Constitution (as amended).” It also noted, “The urgent need to review the revenue allocation formula to reflect changing realities, considering the current formula has been in existence for about 16 years.”
RMAFC observed that some agencies remit collections to the Federal Government’s Consolidated Revenue Fund instead of the Federation Account, contrary to constitutional provisions. Bello lamented the absence of modern digital tools, stating, “There is a lack of a revenue dashboard for technology-based real-time monitoring of revenue inflows from Revenue Generating Agencies into the Federation Account.”
He also mentioned delays and under-remittances of revenue to the Federation Account and the need to separate the Office of the Accountant General of the Federation from that of the Federal Government.
On the Petroleum Industry Act (PIA) 2021, Bello noted that the Nigeria National Petroleum Company Limited (NNPCL) Board excludes key stakeholders like states, local governments, and the Central Bank of Nigeria (CBN).
“The present Board of the NNPCL, as contained in PIA 2021, does not include representatives of some major stakeholders such as State, Local Government, CBN, etc.,” he said.