The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has uncovered nearly N600 billion allegedly deducted by the Federal Government from the Natural Resources Development Fund outside the provisions of the law.
The Chairman of the RMAFC, Dr Mohammed Bello Shehu, disclosed this at the Abuja roundtable on Promise to Proof: The Renewed Hope Conversation, organised by the All Progressives Congress (APC) and the Progressive Strategy Roundtable.
Shehu said efforts are underway to recover the money for the benefit of states and local governments.
He expressed optimism that the current administration is working towards recovering the money to enable states and local governments to benefit from the fund.
The RMAFC chairman commended President Bola Ahmed Tinubu for allowing states to access the Natural Resources Development Fund, noting that the President had also agreed that the money already accrued to the fund should be shared among all states.
He described the development as remarkable, recalling that Tinubu, as governor of Lagos State, had gone to court to challenge the withholding of funds meant for local governments in the state.
According to Shehu, the President’s experience as a former governor has given him an understanding of the challenges associated with revenue distribution.
He specifically cited Lagos, Yobe, and Bauchi States as beneficiaries of the fund under the current administration.
On the proposed review of the revenue allocation formula, Shehu disclosed that the commission had completed its assignment after about two years of consultations with stakeholders across the country.
He explained that the commission’s constitutional responsibility under Section 153 and Paragraph 32 of the Third Schedule to the 1999 Constitution (as amended) includes reviewing the revenue allocation formula from time to time to reflect changing realities.
He said the review considered population changes, the number of local governments, internally generated revenue, and other socio-economic developments, using data from the National Bureau of Statistics, health agencies, and other relevant institutions.
Shehu noted that the existing framework was based on a modification introduced during the administration of former military President Ibrahim Babangida, but realities have changed considerably since then.
He stated that the commission had concluded its review and discussed the recommendations with President Tinubu, who agreed that the time had come to change the formula.
He disclosed that the commission had approached the Federal Ministry of Justice and the Attorney-General of the Federation to facilitate the drafting of the proposed bill, which the President is expected to transmit to the National Assembly soon.
Providing details of the existing structure, Shehu said the Federal Government currently receives 52.86 per cent, state governments 26.72 per cent, and local governments 20.60 per cent, while the Natural Resources Development Fund accounts for 1.68 per cent and the Stabilisation Fund 0.50 per cent.
Speaking on the achievements of the commission in the last three years, Shehu said the RMAFC had undergone significant institutional improvements after years of operating with inadequate resources and limited technological capacity.
He said the commission is also constitutionally responsible for reviewing the remuneration of political office holders, advising states on improving internally generated revenue, and monitoring revenue-generating agencies, including the CBN, NNPCL, and Customs.
Shehu disclosed that one major achievement was the improvement of staff remuneration, noting that while officials in monitored agencies earned between N500,000 and N600,000 monthly, some RMAFC employees earned only about N100,000 when he joined as secretary in 2020.
He said the commission had upgraded workers’ remuneration, digitalised its operations, and is examining the oil and gas industry, particularly regarding the absence of adequate metering to establish the actual volume of crude oil extracted and exported.
Also speaking at the roundtable, the Managing Director of the Nigerian Consumer Credit Corporation (CREDICORP), Uzoma Nwagba, disclosed that the corporation had empowered 350,161 Nigerians with N58.1 billion worth of consumer credit through more than 35 participating financial institutions.
Nwagba said CREDICORP, established in 2024, was created to democratise access to responsible consumer credit, improve household welfare, and stimulate economic growth, with an ambition to reach 50 per cent of working Nigerians by 2030.
He said between 30 and 40 per cent of its portfolio serves rural beneficiaries, adding that a USSD service had been launched for rural Nigerians without smartphones or conventional banking access.
In his presentation, the Director-General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Mr Charles Odii, disclosed that the Federal Government had disbursed approximately N50 billion to one million nano-businesses across the country.
Odii said SMEDAN identified about 39,654,385 nano, micro, small, and medium enterprises across the 36 states and the FCT, with the major challenges categorised under power, infrastructure, financing, manpower, and multiple taxation.
He said the Tinubu administration had begun addressing these challenges through the removal of nuisance taxes, improved access to finance, and business formalisation, including a N200 billion intervention comprising N75 billion for manufacturers, N75 billion for small businesses, and N50 billion in grants.
Odii also disclosed that President Tinubu had approved a N6 billion waiver to eliminate Corporate Affairs Commission registration fees for approximately 250,000 nano-businesses, out of which about 110,000 have benefited so far.
He announced plans to implement the One Local Government, One Product initiative across the 774 local government areas to provide cooperatives with access to up to N10 million, structured as a 70 per cent interest-free loan and a 30 per cent grant.
WATCH TOP VIDEOS FROM NIGERIAN TRIBUNE TV