Key highlights
- Bill will expand the powers of the fiscal commission to monitor accruals
- Bill comes after a 3% reduction in FGs allocation in the current revenue share.
- New laws could have new ways of restructuring the argument
The Nigerian Senate has read for the second time a Bill for an Act to Repeal the Revenue Mobilization Allocation and Fiscal Commission Act, Cap R7 LFN 2004, and also the Commission enforcement powers in the monitoring of accruals.
The Bill was read during Wednesday’s plenary session by Senator Olubunmi Adetunmbi and seconded by Senator Isah Jibrin.
The sponsors of the bill also want the Commission to enforce the disbursement of revenue from the Federation Account.
Repeal
The Nigerian Senate revealed the bill motioned by Senator Olubunmi Adetunmbi is expected to Act to Repeal the Revenue Mobilization Allocation and Fiscal Commission Act, Cap R7 LFN 2004, adding:
“A Bill for an Act to Repeal the Revenue Mobilization Allocation and Fiscal Commission Act, Cap R7 LFN 2004.
“And enact the Revenue Mobilization Allocation and Fiscal Commission to grant the Commission enforcement powers in the monitoring of accruals to and disbursement of revenue from the Federation Account and bring the new Act in conformity with the provisions of the 199 Constitution (as amended) and for other matters related therewith, 2023 (SB. 1111) by Senator Olubunmi Adetunmbi
“The Bill is read the Second Time and referred to the Committee on National Planning and Economic Affairs to report back within four weeks.
Backstory
Recall Nairametrics reported last year that the FG through the Revenue Mobilisation Allocation And Fiscal Commission (RMAFC) stated that the current review process is needed to assure fairness and also to ensure conformity with changing realities, provided that the revenue formula has been accepted by an Act of the National Assembly.
This was disclosed by the RMAFC Chairman, Mr. Elias Mbam, adding that despite the changing realities of Nigeria’s economic landscape, the last review of revenue allocation was conducted in 1992.
Reduction
President Muhammadu Buhari approved a 3.33% reduction in the Federal Government’s allocation in the current review of the revenue allocation formula.
The President disclosed this after he received a report on the review of the vertical revenue allocation formula from members of the Revenue Mobilization, Allocation and Fiscal Commission (RMAFC) led by Engr. Elias Mbam at the State House, Abuja.
As part of the review, an increase of 3.07% and 0.44% for the States and Local Governments respectively is being recommended, saying:
- “Ordinarily, I would have gone ahead to table this report before the National Assembly as a Bill for enactment.
- ‘‘However, since the review of the vertical revenue allocation formula is a function of the roles and responsibilities of the different tiers of government, I will await the final outcome of the constitutional review process, especially as some of the proposed amendments would have a bearing on the recommendations contained herein.”
