RMAFC Champions Direct LG Funding, Seeks Broader Fiscal Reforms
By Patience Ikpeme
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has called for the amendment the constitution to mandate the direct payment of Local Government allocations from the Federation Account.
This stance aligns with the Supreme Court’s ruling on July 11, 2024, which upheld the financial autonomy of Local Government councils.
The specific constitutional provision targeted for amendment by the RMAFC is Section 162 (6). This section currently stipulates that each state must establish a “State Joint Local Government Account,” which serves as the central deposit for all funds allocated to local governments within the state, originating from both federal and state sources.
While the initial intention of the State Joint Local Government Account was to centralize funds for local governments, the recent Supreme Court judgment guaranteeing their financial autonomy has rendered its continued operation problematic.
These demands were articulated in a communiqué issued by the RMAFC following a recent retreat, as conveyed by Hon. Ismail Muhammed Agaka, the Federal Commissioner representing Kwara State and Chairman of the Commission’s Public Affairs and Communications Committee.
Beyond the issue of direct funding, the communiqué also called for a constitutional amendment to include Local Government Chairmen and Councilors among those entitled to the remuneration packages outlined in the amended 1999 Constitution.
Furthermore, the RMAFC stressed the critical need for a contemporary review of the revenue allocation formula to accurately reflect the nation’s current economic realities, as mandated by the 1999 Constitution. The Commission pointed out that the existing formula has remained unchanged for approximately 16 years.
The communiqué also proposed an amendment to Section 162(2) of the Constitution to establish a clear and binding timeline for the President to submit RMAFC’s revenue allocation proposals to the National Assembly for legislative action.
Additional significant proposals contained within the communiqué included the establishment of a National Revenue Dashboard. This digital tool would provide real-time tracking of revenue generation and remittances.
The Commission also resolved to advocate for amendments to pertinent sections of the Petroleum Industry Act (PIA) to expand the composition of the Board of the NNPC Limited, suggesting the inclusion of representatives from states, local governments, and the Central Bank of Nigeria.
Another key recommendation was the creation of a distinct and independent Office of the Accountant General of the Federation, separate from the existing structure within the Federal Government.
The RMAFC, through its communiqué, affirmed its commitment to intensify its constitutional duty of meticulously monitoring revenue accruals. This intensified monitoring aims to ensure the accurate and timely remittance of all revenues due to the Federation Account by all relevant Revenue Generating Agencies.
The communiqué also stated that, in line with the constitutional framework, the advice rendered by the RMAFC concerning the Remuneration package of Political, Public, and Judicial office holders carries a binding authority on both the Federal and State governments.
“The retreat marked a significant milestone in repositioning the Commission to respond more effectively to Nigeria’s evolving fiscal realities,” Hon. Agaka concluded.
The retreat, a three-day event which held in Uyo, Akwa Ibom State, brought together members of the RMAFC and senior management staff. The central theme of the retreat was “Understanding the Role of RMAFC and Other Stakeholders/Agencies in Nation Building.”
The Chairman of the Commission, Dr. Muhammed Bello Shehu, explained that the retreat was specifically designed to provide comprehensive orientation to the newly inaugurated members of the Commission and to enhance the operational focus of the organization. The overarching goal is to better align the RMAFC’s activities with the prevailing national economic realities to accelerate the achievement of President Bola Ahmed Tinubu’s renewed hope agenda.
Earlier during their time in Akwa Ibom, members of the RMAFC commended the Governor of Akwa Ibom State, Dr. Pastor Umo Eno Bassey, for the transformative development of the Arise Resort Project in Uyo. They described the project as an exemplary model of visionary leadership and sustainable development.
Dr. Mohammed Bello Shehu, the Chairman of the RMAFC, who led a delegation of commission members and management staff on a working visit to the resort site, expressed profound admiration for the Akwa Ibom State Government’s efforts in reclaiming over 70 hectares of severely eroded land and transforming it into a thriving eco-tourism and economic hub.
“We are truly amazed by what we have seen here today,” Dr Shehu stated. “This is more than just land reclamation—it is about converting a tragedy into an opportunity for economic growth and social transformation. It takes intellect, vision, and commitment to lead such a project, and I must commend Governor Umoh Eno and his capable team.”
He assured the Akwa Ibom State Government of the Commission’s support, saying, “When we see good projects, we stand by them. We will look at your request passionately and make the necessary recommendations to support you in completing this remarkable initiative.”
Governor Umoh Eno welcomed the RMAFC team and provided a visual presentation illustrating the site’s transformation from an erosion-ravaged area to a world-class resort. He appealed to the Commission for continued support, emphasizing that the state government cannot solely bear the financial burden of such a significant development.
“We’ve invested billions of Naira to reclaim this land, but if we stop there, we risk creating ungoverned spaces that could become security threats,” Governor Eno explained. “We are building this resort not just as an infrastructure project but as part of our long-term economic diversification strategy, anchored on tourism and the digital economy. We aim to make this a prime destination for conferences, leisure, and innovation.”
The governor also revealed that a formal request had been submitted to President Bola Ahmed Tinubu to commission the Arise Resort project upon its completion.
The Arise Resort is envisioned as a premier destination for conferences, recreation, and digital innovation, positioning it as a crucial element in Akwa Ibom’s strategy for non-oil economic development.
