RMAFC:
A CASE FOR ENHANCED FUNDING
BY EMMANUEL ONWUBIKO
The Revenue Mobilization Allocation and
Fiscal Commission is created by virtue of the constitutional provisions in the
part one of the 3rd schedule.
Amongst its fundamental powers and
functions are; to monitor the accruals to the disbursement of revenue from the Federation
Account; review from time to time, the Revenue Allocation formulae and
principles in operation to ensure conformity with changing realities provided
that any revenue formula which has been accepted by an Act of the national
assembly shall remain in force for a period of not less than five years from
the date of commencement of the Act. The Commission also has the power to
advise the Federal and State Governments on Fiscal efficiency and methods by
which their revenue can be increased; and significantly, to determine the
remuneration appropriate for political office holders, including the President,
Vice President, Governor, Deputy Governor, Ministers, Commissioners, Special
Advisers, Legislators and the holders of the offices mentioned in section 84
and 124 of this constitution. In section 84(1), the offices mentioned included
those in judicial officers' cadre whilst in section 124 mention was made of the offices of Governors,
Deputy Governors, Auditor General, the State Independent Electoral Commission and
The State Judicial Service Commission.
From the above constitutional
provisions, it is crystal clear that the commission is pivotal to the smooth
democratization process of Nigeria particularly because of the obvious fact that if the enabling environment is
provided for the agency to work effectively, all the leakages from the fiscal
assets of corporate Nigeria that bleed away into private pockets would be curtailed and
effectively checked.
The
question set out to be tackled in this piece is why
the commission is not adequately funded and why the relevant statutes
enabling
its existence not amended to confer enforcement rather than advisory
roles on
it. Again why is the process of the amendments of the 1999 constitution
still in abeyance and why has the Supreme Court of Nigeria not expedited
action on the hearing of the suit instituted by the office of President
challenging the passage and coming into effects of the just concluded
amendments done by the defunct National Assembly? The seventh session
of the National Assembly had recommended funding autonomy for the RMAFC
just as the last National political conference also recommended same and
the Justice Modibbo Belgore led committee on constitutional reforms
also recommended that the funding of the revenue commission be drawn
from the first line statutory charge.
There
is no gainsaying the fact that in
terms of political will and the leadership vision, the hierarchy of the
Revenue mobilization allocation and fiscal commission are clearly ready
and willing to
do the needful to ensure the efficient enforcement of those strategies
that
could check any leakages and improve the revenue generating profile of
Nigeria.
The commission’s chairman is Engineer
Elias Mbam who was once a minister of state for Finance who according to several
testimonies by respected Stakeholders recognised his sterling qualities as a gentleman of proven
integrity and a Statesman.
Mrs. Ifueko Omoigui Okauru, a one time Executive
Chairman of Federal in-land Revenue Service and Chairman Joint Tax Board had on
February 15th 2011 during the management retreat for members
and
management of the Revenue Commission which held in Uyo, Akwa Ibom State
described Engineer Elias Mbam in the following superlative terms: “ let
me also note that
the chairman of the commission Engineer Elias Mbam is well known as a
committed
and diligent person who has acquitted himself impressively in all
national
assignments and I have no doubt that his appointment will positively
impact the
ability of the commission to discharge it’s mandates”.
This Testament was immediately given a life of its own when an ad-hoc committee set up by the chairman went to work and
expertly identified the challenges facing the agency even as pragmatic steps
and measure were put in place to actualize the stated solution to each and
every fundamental institutional challenges besetting the Revenue Mobilization
Allocation and Fiscal Commission.
By way of Emphasis the committee found out as far back as year 2011 that there are cases of variation in the provision
of the 1999 constitution and the enabling laws of the commission enshrined in
CAP R7 laws of the federation of Nigeria of the year 2004.
This committee
further proceeded to proffer panacea that the enabling Acts of the commission
should be comprehensively reviewed to harmonize with the provision of the 1999
constitution.
The
committee which was the brain
child of Elias Mbam led hierarchy suggested the opportunity provided by
the review exercise should be used to correct all inadequacies in the
legal
framework including special funding of the commission just as it asked
that a
draft bill reflecting the review should be presented to the national
assembly.
This was done but as so well known, the
different sessions of the national
assembly move in a snail -speed that it
has become increasingly difficult for this aspiration of the management of the
commission to be achieved in good
time.
Conversely, the committee also found out that certain provisions of the 1999
constitution central to the functions of
the commission need judicial interpretation and gave example with that which
states that “all revenues” and also the extent of
monitoring of the payments into the federation account .
The Human Rights writers Association
of Nigeria (HURIWA) has extensively
examined the operational modalities of the revenue commission and we
can state without any fear of contradiction that given the salient
constitutional roles of the commission the current funding profile must be
consolidated.
To
demonstrate how seriously committed
to the enthronement of transparency and accountability this commission
under
the leadership of Elias Mbam is, one just have to look at the summary of
issues,
recommendations and action plan submitted to the commission by the
ad-hoc
committee in 2011 which graphically painted grim picture of the issue of
lack
of transparency and accountability in crude oil sub sector of the
economy. These facts have now come to the front burners of national
debate.
In other
words, the negative impact of the JVCC,
petroleum subsidy, non-remittance to the federation account, Exchange
rate differentials, external loans deductions, first line charges
amongst others are enormous, they stressed.
To
put
it mildly this is superfluous. How can the constitution empower the
empanelling
of such a commission but only dress it up with advisory roles? This
lacuna must
be effectively reviewed and amended so the commission can be offered the
constitutional authority to enforce compliance similar to what such
important
bodies as bureau for public procurement does even when it is not
encompassed or contained in the Supreme body of law guiding Nigeria -
the Nigeria constitution.
The
committee pointed out that section 162 of the constitution provides the
establishment of the federation account into which “all revenue” shall be paid and the agency indicated intention to
initiate a legal process to seek for interpretation of the section to
determined the legality or otherwise of the government agencies withholding
remittance or portions of their collections to the federation Account.
However, the revenue commission drew
the attention of the federal government to this practice of withholding funds
due to the federation account. From all indications, since this matter was
tabled to the federal government in 2011 till the emergence of the current
federal government no action was taken.
This is a clear indication that the
engineer Elias Mbam led RMAFC were amongst those who championed the current
enforcement by the President Muhammadu Buhari’s Government of the Treasury
Single Account which took off with effect from September 30th 2015.
The current management team headed by
engineer Elias Mbam is credited with organizing national dialogues on the best
Revenue Allocation formula.
The Nigeria observer newspaper praised
Engineer Mbam thus;
“There
is no Nigerian who is not excited or captivated by Mr. Mbam’s delightful
gesture to the nation – a national debate on revenue allocation formula that
has epistemological phenomena of a child embroiling in festivity".
"Many Nigerians thought the day would never come as many damages have been done and incurred by
Nigeria for the late awakening to this reality of fiscal federalism formula
review. Any country that is a federation must have a formula for sharing
nationally derived funds, (coded national cake in Nigeria) amongst the tiers of
government that make up the federation. The formulae are similar in many forms
but environmental circumstances demand that different countries formula’ takes
note of their environments hence the difference in the formula’s
characteristics. Therefore the Nigeria’s formula would be different from that
of the USA, Canada, or Ethiopia.”
“Mr. Mbam the Chairman of Revenue Mobilization Allocation and Fiscal Commission
(RMAFC) has thrust the whole country into a pandemonium, by demanding a
national dialogue in respect of revenue sharing formula. The paradox could be
one of high hopes with the resultant consequences of consolidated unity for
Nigeria or a hoax that could result in discord, despair and which could finally
put the nail on the coffin to seal the faith of Nigeria in disarray and
possibly split. His call for review and national discourse in the matter has a
salutary effect even though we have been in such a call before only to be
covertly deceived.”
There
are indeed cogent and verifiable reasons why RMAFC should be granted
autonomy if truly we mean to wage relentless war against corruption and
financial leakages in government agencies that generate revenues for
Nigeria.