Revenue Commission clarifies misconceptions by MDAs on funding

The Revenue Mobilisation and Fiscal Commission (RMAFC), Wednesday expressed concern over the misconceptions accessing of funds from federation account by Ministries, Departments and Agencies (MDAs) of government.

Mr Elias Mbam, Chairman of the Commission expressed the concern in a document made available in Abuja.

Mbam said that the beneficiaries to the federation account were the federal, state governments and the local government councils in each state as provided in section 162 (3) of the 1999 Constitution of the Federal Republic of Nigeria.

He further explained that the commission had the mandate to monitor the accruals to and disbursement of revenue from the federation account accrued revenue to the federal, state and local governments.

“The commission also advises the federal, state and local governments fiscal efficiency and methods by which their revenue be enhanced.

According to , this explanation became necessary following a letter from the Ministry of Police Affairs to Ministry of Finance, Budget and National Planning and copied the commission requesting it to fund `Nigeria Police Trust Fund’.

The request recalled that June 24, 2019 Mr signed into law the Nigeria Police Trust Fund (Establishment) Act, 2019.

In the request, the objective of the Act was to provide a framework management and control of the special intervention fund established under section 3 of the Act for training and retraining of personnel of .

And also provision of state of Art security equipment and other related facilities enhancement of the skills of the personnel of the Nigeria Police in the handling of operational equipment and machinery.

According to the letter, sources of funding Trust Fund include 0.5 per cent of the total revenue accruing to the federation account as well as 0.005 per cent of the Net Profit of companies operating business in Nigeria among other sources.

The chairman reiterated that “the commission is saddled with the responsibility to monitor accruals of revenue into the federation account from revenue generating agencies and disbursement of all the accruals to the three tiers of government while blocking leakages”.

Mbam explained that the , upon the receipt of advice from the commission, would table before the National Assembly proposals for revenue from the federation account.

“And in determining the formulae, the National Assembly shall take into account, the principles especially those of population, equality of states, internal revenue generation, land mass, terrain as well as population density,” he said. (NAN)