The Chairman of Revenue Mobilization Allocation and Fiscal Commission ( RMAFC) Dr. Mohammed Shehu said the commission is working hard to deliver on new revenue formula before the end of the 2025 .
Shehu gave the assurance on Monday in Abuja on the occasion of the press conference for the review of the formula.
This was as Executive Director, Civil Society Legislative Advocacy Centre( CISLAC) Auwal Ibrahim Musa (Rafsanjani) advised the Commission to revisit high emoluments and salaries paid to political office holders on RMAFC’ recommendation.
In 2022, the commission under the leadership of the immediate past Chairman Engr Elias Mbam submitted a new revenue formula to late president Muhammad Buhari for onward submission to the National Assembly. The report never got to be passed to the National Assembly before the administration wound up in May 2023.
Speaking on the imperative of a new revenue formula yesterday, RMAFC Chairman said recent constitution amendment makes revenue formula revisit an important exercise.
Shehu said: “The recent Constitutional amendments-by-the 9th National Assembly, which devolved certain responsibilities from the exclusive to the concurrent legislative list, such as generation, transmission, and distribution of electricity; railways; and prisons (correctional centres), have placed financial and administrative burdens on sub-national governments. This situation has made it
essential to re-evaluate the structure of fiscal federalism in order to foster economic growth in individual states, enabling them to become independent from the central government and ensuring equity, responsiveness, and sustainability”.
“The aim of this review is to produce a fair, just, and equitable revenue-sharing formula that reflects the current responsibilities,
needs, and capacities of the three tiers of government-federal, state, and local governments in line with the constitutional roles. The commission will carefully assess the needs, service delivery obligations, fiscal performance, and developmental disparities”, Shehu said.
He said the last review of the revenue allocation formula was carried out in 1992, adding that there were several executive orders from May 2002 to date to modify it without success.
CISLAC Executive Director Auwal Ibrahim Musa (Rafsanjani) tasked RMAFC to review down perks and emoluments paid to political office holders.
” A lot of Nigerians’ attention has been on the commission. The remuneration of political office holders is outrageous. There must be justice to address imbalance in the economy by political office holders. We need to ensure the Constitution is respected with respect to supreme Court judgement in administration of local government councils. Some states are still in control of local government councils. Governors still manage the whole process”,
Rafsanjani said.
In response, RMAFC Chairman said it’s part of the commission responsibility to come up with acceptable remuneration for political office holders noting the commission had not carried out such a review since 2008.
” The commission is coming up with a report in that respect..We are strictly restricted to political office holders . The CBN governor, NCC DG and NNPC earn ten times higher than what you pay the President of a country. The president earns N1.5 million per month since 2007 and it has not been reviewed”, he said.
In a welcome address, Chairman of Revenue allocation formula committee Mallam kabir Muhammad Mashi said the gathering signified pivotal step in the evolution of fiscal federalism and intergovernmental fiscal relations.
” It provides an opportunity for us to intimate you of our activities so as to understand the approach and offer your perspectives on this vital matter. The Commission is determined to Conduct this review through a process that is inclusive, transparent, evidenced-based and fully aligned with the spirit and letters of the 1999 Constitution (as amended)”, he said.
