The Senate on Thursday granted powers to the Revenue Mobilization, Allocation and Fiscal Commission (RMFAC) to oversee cash flows in increments and disbursement from the Federation account.
The Senate passed the resolution after it passed Amended clauses 1 – 23 of the RMFAC Act during plenary presided by the Deputy Senate President, Senator Barau Jibrin.
RMFAC’s composition and mode of operations was also amended to ensure that the Federal, State and Local governments are adequately provided with the constitutionally mandated resources to address challenges of governance and development.
In order to achieve RMFAC’s newly added responsibilities, the Lawmakers also approved additional funding for the Commission, which they said hitherto hindered the effective performance of its constitutional responsibilities.
The Senate arrived at the resolutions after it approved the recommendations of the Committees on National Planning and Economic Affairs; Finance and Appropriations Revenue Mobilisation Allocation and Fiscal Commission presented by its Chairman Senator Abdullahi Yahaya Abubakar ( PDP, Kebbi North ).
Some important aspects of the amended clauses include: Establishment and Composition of the Commission; Removal and cessation of Membership; Powers of Commission; Established by an Act of the National Assembly; Independence of the Commission; Proceedings of the Commission; Appointment and Function of Secretary of the Commission; Other Staff of the Commission; Establishment of Zonal and state Offices; Establishment of Fund of the Commission; Audit and Account Annual Report and Repeal and Savings and Power to make regulations.
As prescribed by the report of the Committees the Senators repealed and enacted Cap R7 of the Commission’s Act Laws of the Federation of Nigeria, 2004 which paved for RMFAC to monitor cash flows from the Federation account.
For improved revenue Clause 14 section 1 of the Establishment of Fund of the Commission was amended to now state as: “The fund of the Commission shall be a direct (first line) charge on the Consolidated Revenue Fund of the Federation, which shall be appropriated by the National Assembly.
While section 2 of clause 14 was amended to read as; “The Commission shall also establish and maintain a fund into which shall be paid (a) all sums of money accruing to the Commission by way of grant-in-aid, gifts, endowments and contributions from any donor agency
Clause 2 was also amended granting powers to the President subject to the confirmation of the Senate to appoint the Commission’s chairman and one member from each State of the Federation and the Federal Capital Territory, Abuja.
In his address Abdullahi reminded the Senate that the Bill was debated on 7th of May , 2024 and the Bill was forwarded from the House of Representatives for the concurrence of the Senate and passage.
“However, because of the importance and implication of the provisions of the Bill to the three tiers of government in the Federation, it was referred to the Committees on National Planning and Economic Affairs; Finance; and Appropriations for further legislative action,” Abdullahi said.
Explaining what necessitated the Bill, Abdullahi held that as a result of the prevailing challenges of dwindling revenue and geometric population progression and its attendant pressure on scarce resources, it is imperative for an effective resource mobilization, allocation and utilization cannot be over-emphasized.
Abdullahi also noted that the Act has not been updated to reflect the changing realities of the time over a twenty year period,
He explained; “While the laws establishing revenue agencies and institutions for the Federation have been updated to respond to contemporary challenges in terms of productivity and capacity, RMFAC that is expected to monitor these organizations and assist them to mobilize the required resources for the three tiers of government in Nigeria has comparatively remained obsolete in terms of its operational capacity largely due to the limitations of its legal framework, thus diminishing its capability to fulfill its mandates”.
Clause 6 was subsequently amended to grant overseeing powers to the Commission to now read as, “monitor any receipt however described arising from the operation of any law; Return, however described, arising from or in respect of any property held by the Government of the Federation and return by way of interest on loans and dividends in respect of shares or interest held by the government of the Federation in any company or statutory body;
Perform such other functions as are conferred on the Commission by the Constitution or any act of the National Assembly.
The Committees observed that one of the major factors militating against the performance and effective service delivery of the Commission was the out-moded nature of the extant act which this Bill seeks to address.
In conclusion, Abdullahi emphasised that inputs were made by Commission; Ministries of Justice and Finance and urged the Senate to pass the recommendations of the Bill.
Majority of the Senators voted in favour of the Bill’s passage after it was put into question by Barau Jibrin.
