The federal government Tuesday directed the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) to speed up the review of the revenue allocation formula, that was not updated in over twenty years.
Secretary to the Government of the Federation (SGF) Senator George Akume announced this at the inaugural plenary session after the swearing-in of the newly appointed RMAFC federal commissioners in Abuja.
He said: “The existing formula has not been reviewed in over two decades. A new equitable formula is critical for national economic stability and development.”
Akume, while stating that the government expects key deliverables from the Commission, including strengthening revenue monitoring and ensuring that all revenue-generating agencies comply with collection and remittance laws, said: “Leakages must be blocked, and defaulters sanctioned.”
The SGF further tasked the agency to prioritise non-oil revenue generation from solid minerals, taxation, and other sectors to reduce reliance on crude oil earnings.
He similarly urged the body to align its strategies with the government’s economic transformation agenda and collaborate with stakeholders such as the National Assembly, Ministry of Finance, Federal Inland Revenue Service (FIRS), Nigerian National Petroleum Company Limited (NNPCL), Nigerian Upstream Petroleum Regulatory Commission (NUPRIC), Central Bank of Nigeria (CBN), and state governments.
Akume said: “Your work here will shape the financial future of Nigeria. The task ahead is daunting, but with integrity, commitment, and patriotic dedication, we will succeed. The nation expects results, and I am confident that this group of dedicated citizens will fulfill their responsibilities with diligence and excellence.”
The SGF recommitted the Bola Ahmed Tinubu administration to bold fiscal reforms, revenue diversification, and policies aimed at repositioning Nigeria’s economy for sustainable growth.
“As President Bola Ahmed Tinubu has consistently emphasized, we must expand revenue sources, curb revenue leakages, and ensure that every naira due to the Federation Account is accounted for,” Akume added.
According to him, the nation’s current economic measures, including fuel subsidy removal, exchange rate unification, and tax reforms, were designed to achieve fiscal stability, noting however that the policies can only succeed if institutions like RMAFC execute their mandates effectively.
Assuring the RMAFC of the government’s full support, he said “the government remains fully committed to providing the necessary support for the Commission to achieve its constitutional mandate.
“In the same vein, President Bola Ahmed Tinubu has consistently emphasized the need for institutional independence, accountability, and operational efficiency.”
…RMAFC boss on mandate
Earlier in his remarks, the RMAFC Chairman, Dr. Mohammed Bello Shehu, had highlighted the agency’s mandate, saying: “As a constitutional body, the Commission plays a pivotal role in the nation’s economic governance by ensuring the fair and transparent allocation of revenue among the three tiers of government. We are also actively engaged in developing frameworks that enhance revenue generation, fiscal sustainability, and equitable distribution, in line with national development priorities.”
Shehu who noted the centrality of the OSGF to the coordination of government policies, said: “This visit provides an avenue for us to share insights into the Commission’s ongoing initiatives, challenges, and strategic direction. We recognize the critical role of the Office of the SGF in coordinating government policies, and we look forward to your guidance and support in ensuring that RMAFC effectively discharges its constitutional responsibilities.
“We are confident that today’s engagement will further strengthen the synergy between RMAFC and the Office of the SGF in pursuit of our collective goal of national development.”