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RMAFC recommends constitutional amendment on LG allocations, revenue oversight

RMAFC recommends constitutional amendment on LG allocations, revenue oversight

By Chioma Onuegbu, Uyo

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has called for a constitutional amendment to ensure that local government allocations are paid directly from the Federation Account, in line with the Supreme Court ruling on financial autonomy.

In a communiqué issued at the end of its three-day retreat held at the Ibom Hotel & Golf Resort in Uyo, RMAFC noted that Section 162(6) of the 1999 Constitution should be amended to remove legal constraints hindering the full implementation of the ruling delivered on July 11, 2024.

The retreat also highlighted the need for a comprehensive review of the current revenue allocation formula, which has remained unchanged for over 16 years, despite evolving economic and governance realities.

The communiqué was presented by Hon. Ismail Mohammed Agaka, Chairman of the Commission’s Public Affairs and Communication Committee (PACC), and was flanked by the RMAFC Chairman, Dr. Muhammed Shehu, and Secretary, Engr. Joseph Okechukwu.

Key recommendations from the retreat include:

Amending Section 162(2) of the Constitution to establish a clear timeframe for the President to present RMAFC’s proposed revenue allocation review to the National Assembly;

Amending Section 162(6) to mandate direct payment of local government funds from the Federation Account, upholding the Supreme Court’s position on local government autonomy;

Including local government chairmen and councillors among beneficiaries of constitutionally defined remuneration packages;

Intensifying RMAFC’s monitoring mandate to ensure timely and accurate remittance of revenues by all revenue-generating agencies;

Establishing a National Revenue Dashboard to interface with all revenue-generating agencies for real-time, technology-based monitoring of revenue inflows into the Federation Account;

Creating the Office of the Accountant General of the Federation within RMAFC, as a federated agency to enhance transparency and oversight.

The Commission emphasized that these reforms are crucial to strengthening fiscal governance, promoting accountability, and ensuring fair and equitable distribution of national resources.