RMAFC Urges Govts to Boost Domestic Revenue for National Development
By Patience Ikpeme
The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) has called for increased domestic revenue mobilization (DRM) at all levels of government as a strategy to foster economic growth and reduce reliance on external borrowing.
Speaking at the 2024 National Council on Finance and Economic Development (NACOFED) in Bauchi state, RMAFC Chairman, Dr. Mohammed Bello Shehu, emphasized the need for sustainable revenue sources to drive national development.
He noted that taxes, levies, fees, and earnings from natural resources, productive sectors, and state-owned enterprises can create financial independence and provide a stable foundation for planning and implementing development initiatives.
Dr. Shehu highlighted the challenges posed by global economic uncertainties, including fluctuating oil prices and rising debt obligations, underscoring the urgency of boosting domestic revenue. “This revenue serves as the backbone for public investment in critical sectors like infrastructure, healthcare, and education, directly reducing poverty and driving socio-economic growth,” he said.
The Chairman stressed the importance of diversifying the nation’s revenue base to mitigate risks associated with oil dependence. He explained that increasing DRM would preserve fiscal sovereignty, enabling the government to prioritize local development over external debt servicing.
According to Dr. Shehu, “Effective domestic revenue mobilization demands improvements in governance, transparency, and accountability. Citizens contributing more through taxes will demand better governance, fostering a virtuous cycle of trust and efficiency.”
RMAFC also urged governments to explore alternative revenue sources by developing sectors such as agriculture, technology, solid minerals, tourism, and the creative industries. The Commission noted that these sectors hold significant potential for economic growth and job creation, while also reducing the impact of oil price volatility on national revenue.
To achieve these goals, RMAFC advocated for innovation, infrastructure development, financial inclusion, regional economic integration, and community engagement. The Commission emphasized that building a robust domestic revenue base is essential for Nigeria’s economic stability and independence.
“Financing national development through domestic revenue mobilization is not just a financial necessity—it is critical to fostering a self-reliant Nigeria capable of driving its development agenda with resilience and sustainability,” Dr. Shehu concluded.
