FG Begins Process To Review Revenue Sharing Formula

Elias Mbam, Chairman, Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC), has constituted various committees charged with the responsibility of strengthening the commission’s monitoring mechanism, blocking leakages of revenue from the Federation Account, and reviewing the present revenue sharing formula of the federation.

Mbam said the committees became necessary following President Muhammadu Buhari’s directive that the RMAFC should focus on expanding the sources of revenue to the Federation Account.

According to Mbam, the president also tasked them to concentrate on increasing the non-oil revenue sources, especially solid minerals.

Speaking at the inauguration of the chairmen and members of RMAFC Standing Committees on Thursday in Abuja, Mbam explained that the setting up of the committees was in line with the statutory mandate of the commission.

He said: “As you may be aware, the commission 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, and determine remunerations appropriate for political/public office holders.

“You may recall that during our inauguration, Mr. President directed us 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 from the Federation Account.

“In consideration of the president’s address and to effectively and efficiently discharge the constitutional mandate of the commission, it has become absolutely necessary to constitute standing committees to handle respectively all the issues pertaining to our 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.”

Mbam assured that the commission would, within its available resources, provide all the necessary support that would facilitate the smooth functioning of the various committees, calling on the chairmen and members of the committees to devise new strategies that would further improve the processes of the commission and strengthen the existing collaboration between the commission and its diverse stakeholders.

Some of the committees inaugurated include the Indices and Disbursement Committee, Federal Allocation Account Committee, Crude Oil Monitoring Committee, Inland Revenue Monitoring Committee, and Customs Revenue Monitoring Committee.

Others are Solid Minerals Monitoring Committee, Gas Monitoring Committee, Remuneration and Monetisation Committee, Fiscal Efficiency and Budget Committee, Mobilisation and Diversification Committee, Revenue Allocation Formula Committee, and Investment Committee. (Daily Independent)

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