From Juliana Taiwo-Obalonye, Abuja
The 146th National Executive Council (NEC), presided over by Vice President Kashim Shettima, has approved a significant increase in funding for the Revenue Mobilisation and Fiscal Allocation Commission (RAMFAC), setting the allocation at 0.05% of non-oil federation revenue.
This decision was disclosed by Anambra State Governor Charles Soludo during a briefing with State House Correspondents following the NEC meeting held on 12 December 2024.
The governor highlighted that one of the primary topics of discussion was a report concerning RAMFAC, which was presented to the NEC. He said the report called for a revision or repeal of the existing Act of Parliament that established the commission, proposing instead a new legislative framework to enhance its operational capabilities.
“The report emphasised the onerous responsibilities of RAMFAC and its essential role in the functioning of our Federation,” Soludo stated. “It also pointed out the inadequate funding that hampers the commission’s ability to perform its critical tasks.”
Following deliberations, the NEC approved two key recommendations. First, RAMFAC is to forward a draft bill to the National Assembly for consideration and passage into law. Second, the council approved an increase in funding for RAMFAC, setting it at 0.05% of non-oil federation revenue. This decision comes despite RAMFAC’s initial request for 0.75%.
“This allocation is subject to further scrutiny by the National Assembly,” Soludo noted, emphasising the importance of adequate funding for RAMFAC to fulfil its mandate effectively.
He said: “Among the issues discussed at today’s NEC was also the presentation of a report in respect of an earlier presentation by the chairman of the Revenue Mobilisation and Fiscal Allocation Commission to NEC on the 21st of November, and seeking essentially to revise or repeal the existing Act of Parliament establishing the commission and to replace it with a new one, and then also seeking for revision, I mean a review about alternative funding to the institution.
“So the report elaborately noted the very onerous responsibilities of RAMFAC and as a very, very beautiful institution in the functioning of Federation, and noted the inadequate funding for this institution to be able to perform its tasks. And then also noted the draft repeal-and-replace legislation that was also pending.
“And after deliberating this, the council noted this and approved as follows. First is that RAMFAC should forward the draft bill to the National Assembly for consideration and passage into law. And second, the council also approved the recommendation for improved funding for RAMFAC and approved that the commission be funded with 0.05% non-oil federation revenue based on the proposed tax reforms and subjected to further scrutiny by the National Assembly.
“I know the commission had requested for 0.75, but in the wisdom of NEC, it was … 0.05%, of course, subject to review by the National Assembly.”