Tag: RMAFC

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) yesterday announced that it had finalised work on a new remuneration for political office holders in the country.

The commission said it had submitted the new pay package to the President through the Office of the Secretary to the Government of the Federation (OSGF).

RMAFC’s Chairman, Mohammed Bello Shehu, who announced this at a budget defence of the agency before the House of Representatives Committee on Finance, said the new proposal is for ministers and political office holders.

He said the President will soon forward the new salary package to the National Assembly for further scrutiny and approval.

Shehu said the agency was also working on “vertical, horizontal revenue sharing formula. We are also on that. We will conclude this year”.

The chairman, who provided an update on the ongoing review of the revenue allocation formula for the three tiers of government as well as the remuneration for political office holders, stated: “Very soon, we will conclude. We have done everything. We have concluded. We are just about to finish analysing the data and bring it before you.”

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“We hope that very soon this will be transmitted to you so that it becomes law. Of course, your own doesn’t require any legislation. It’s for the ministers and others.”

He expressed concern over the interference of state governments in the fiscal governance of the local government areas over the years.

Shehu said: “The commission would like to establish a Local Government Committee now, like we used to do before the Supreme Court said we were busy bodies. Now, we will monitor every single local government in Nigeria.

“I’m glad that Mr. President spoke to the governors, that ‘if you don’t allow this, I will issue an Executive Order’. So, the commission is fully in support of Mr. President over this course.

“The crisis we are having in Nigeria today is the lack of functionality of the local governments, and every single one of us knows this. Even under the military, the local governments performed much better. So, I thank you profoundly, sir; it’s your committee that initiated this.

“Three years ago, when we came, we told you, you (Committee Chairman Abiodun Faleke) said you could handle this, and you guided me. I followed your advice and the rest is a success. So, we are grateful for this also.”

“I sincerely thank this committee for what you have done for the Revenue Mobilisation Allocation and Fiscal Commission. You have brought us out. We are now being respected by almost all the revenue-generating agencies in Nigeria.

“Even before we knock now, they are knocking at our doors, having discussions with us. Some of the issues that have been, over the years, are being addressed by some of these revenue-generating agencies; whether it is the Nigerian Customs, the NUPRC, and other agencies.

“So, I thank you profoundly and I think you have done a great service to Nigeria. This is just the beginning. I will now go to the document before you.”

Shehu told the lawmakers that the agency was carrying out an audit of the nation’s oil assets in the Niger Delta.

He said: “What you have done for us and for Nigeria; your name will go down in gold, sir. We are being respected by all revenue-generating agencies. Anywhere we go now, everybody is like shivering, trying to really identify with us.

“For the first time, the verification that we are doing of oil wells all across the Niger Delta region has never been done before. The equipment that we have; not even new precursors. No governor now will say, ‘When you come to my state, you have to beg me,” where even we are going to stay, provide vehicles and things like that. Now, we can do that.

|My people spent three to four months in the field. Some of them went into the creeks, up to here, to identify those oil assets that we have in Nigeria. By the time we finish, when Mr. President receives this report, this country will shake. I’m not making it up. I have provided you with an internal report, but I don’t want to let the cat out of the bag. So, this is remarkable, sir.”

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), said on Thursday that it has finalised work on a new remuneration for political office others in the country  which it has submitted to the President through the Office of the Secretary to the Government of the Federation.

Chairman of the Commission, Mohammed Bello Shehu who disclosed this at a budget defence of the agency before the House Committee on Finance  said the new proposal which is for Ministers and political office holders will soon be forwarded to the National Assembly by the President.

He said the agency is also working on “vertical, horizontal revenue sharing formula. We are also on that. We will conclude this year”

Shehu who gave update on the ongoing review of revenue allocation formula for the three tiers of government as well as remuneration for political office holders, saying: “very soon we will conclude. We have done everything. We have concluded. We are just about to finish analyzing the data and bring it before you.”

He said “We hope that very soon this will be transmitted to you so that it becomes law. Of course, your own doesn’t require any legislation. It’s for Ministers and others”. 

He expressed concern over the interferance of state governments in the fiscal governance of the Local Government Areas over the years, saying “the Commission would like to establish a Local Government Committee now like we used to do before the Supreme Court said we were busy bodies. Now we will monitor every single Local Government in Nigeria.

“I’m glad that Mr. President spoke to the Governors himself, that if you don’t allow this then I will issue an Executive Order. So, the Commission is fully in support of Mr. President over this course. 

“The crisis we are having in Nigeria today is lack of functionality of Local Governments and every single one of us knows this. Even under the military the Local Governments will perform much more better. So I thank you profoundly sir, it’s your committee that initiated this.

Read Also: RMAFC moves to develop transparent framework for 13% derivation fund disbursement

“Three years ago when we came we were telling you, you (Faleke) said chairman you can handle this and you guided me and I followed your advice and the rest is a success so we are grateful to this also.”

“I sincerely thank this committee for what you have done to Revenue Mobilisation Allocation and Fiscal Commission. You have brought us out. We are now being respected by almost all the revenue generating agencies in Nigeria. 

“Even before we knock now, they are knocking at our doors, having discussions with us and some of the issues that have been over the years are being addressed by some of these revenue generating agencies, whether it is the Nigerian Customs, NUPRC and other agencies.

“So I thank you profoundly and I think you have done a great service to Nigeria and this is just the beginning. I will now go to the document before you.”

Shehu hinted the lawmakers that the agency was carrying out an audit of the nation’s oil assets in the Niger Delta.

He said: “what you have done to us and to Nigeria, your name will go down in gold, sir. We are being respected by all revenue generating agencies. Anywhere we go now, everybody is like shivering trying to really identify with us.

“For the first time, like the verification that we are doing of oil wells all across the Niger Delta region has never been done. The equipment that we have, not even new precursors. No Governor now will say, when you come to my state, you have to beg me where even we are going to stay, provide vehicles and things like that. Now we can do that, sir. My people, sir, spent three to four months in the field.

“Some of them went to the creek water up to here, sir, to identify those oil assets that we have in Nigeria. And by the time we finish, sir, when Mr. President receives this report, this country will shake, sir. And I’m not making it up. I have provided you with an internal report, but I don’t want to let the cart out of the bag, sir. So this is remarkable, sir.”

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has expressed readiness to work with relevant stakeholders to develop a sustainable and transparent framework for the disbursement and utilisation of the 13 percent derivation fund allocated to oil-producing states.

Chairman of the Commission, Dr. Mohammed Bello Shehu, said the matter requires a delicate balance between constitutional provisions, judicial interpretations, and state-level management. “The issue involves a delicate balance between constitutional provisions, judicial interpretations, and state-level management,” Dr. Shehu stated.

According to a statement signed by Maryam Umar Yusuf, Head of Information and Public Relations at the RMAFC, Dr. Shehu made the remarks when he received a delegation from the Host Communities of Nigeria Producing Oil and Gas (HOSCON), led by its Chairman, Prince Michael Emuh, at the Commission’s headquarters in Abuja.

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Dr. Shehu said the Commission remains committed to ensuring that host communities in Nigeria’s oil and gas-producing areas receive fair and transparent benefits as provided by the Constitution. He commended HOSCON for adopting a peaceful and consultative approach toward addressing issues of resource allocation and environmental justice in oil-producing areas.

“Without the peace and cooperation of the host communities, the exploration and production of oil and gas in Nigeria would not be possible,” he said.

During the interactive session, the Secretary to the Commission, Engr. Joseph Okechukwu Nwaeze assured that RMAFC will continue to uphold fairness and transparency, adding that the advocacy efforts of host communities “will not be in vain.”

Federal Commissioner representing Rivers State, Hon. (Amb.) Desmond Akawor described HOSCON’s presentation as timely and insightful, calling for closer collaboration between host communities and key institutions to develop practical monitoring mechanisms for the 13 percent derivation fund.

Also speaking, Hon. Nkechi Otti, Federal Commissioner representing Abia State, urged host communities to protect projects funded through the derivation fund from vandalism, noting that such protection would ensure the sustainability of state-funded initiatives.

Federal Commissioner representing Gombe State, Hon. Mohammed Kabeer Usman, ueged HOSCON to pursue its advocacy through dialogue and legal processes. “Achieving results requires engaging the National Assembly, the Judiciary, and State Governments, not confrontation,” he advised.

Similarly, Hon. Ibrahim Sa’ad Bello, Federal Commissioner representing Plateau State, said there is a need for a clear constitutional framework to ensure that funds meant for host communities reach the grassroots.

In his contribution, Hon. Imoh Akpan Effiong, Federal Commissioner representing Akwa Ibom State, appreciated HOSCON for its constructive engagement and assured that the Commission would carefully review the group’s submissions and take necessary steps toward developing a lasting framework for host community inclusion.

The Technical Assistant to the Chairman, Prof. Aliyu Idris, commended HOSCON for engaging through institutional channels and advised the group to submit a memorandum to the National Assembly proposing a constitutional management framework for the 13 percent derivation. He explained that embedding such a framework in the Constitution would make compliance mandatory for all state governments.

In his remarks, HOSCON National Chairman, Prince Michael Emuh, described the engagement as “a new dawn for the long-neglected communities that lay the golden egg.” He lamented that despite contributing significantly to the nation’s wealth, host communities continue to face marginalisation.

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) is working on a new revenue sharing formula designed to empower state and local governments to meet their constitutional obligations effectively while maintaining national cohesion and macroeconomic stability.

This disclosure was made by the chairman of the RMAFC, Dr. Mohammed Bello Shehu, during a panel discussion titled “Recalibrating Nigeria’s Revenue Allocation Formula,” held on Tuesday in Abuja.

Dr. Shehu confirmed the commission’s determination to produce a new, equitable, and data-driven formula that reflects Nigeria’s current economic and constitutional realities.

He noted that the existing formula, approved in 1992, no longer reflects Nigeria’s fiscal responsibilities, demographic shifts, or governance realities.

“Our goal is to design a formula that empowers subnational governments to meet their constitutional obligations effectively while maintaining national cohesion and macroeconomic stability,” Dr. Shehu stated.

He urged participants to adopt a patriotic perspective in their deliberations, stressing the significance of their work on the nation’s future.

“As we deliberate today, let us approach this dialogue not as representatives of different interests but as custodians of shared destiny. The choices we make here will shape the capacity of governments to deliver education to our children, healthcare to our citizens, and infrastructure to our communities,” he said.

Dr. Shehu gave assurances that the review would ensure fairness, balance, and national cohesion, and he urged all participants to set aside personal interests.

He also stated that recent amendments to the RMAFC Act have provided the Commission with the power to engage directly with private sector entities, including oil companies, to verify and recover revenues due to the Federation. He added that beyond allocation, revenue mobilisation and accountability remain central to achieving sustainable development.

Read Also: RMAFC begins verification of disputed oil, gas fields in Niger Delta

The Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, praised the Commission’s efforts and agreed that recalibrating the formula is key to national stability.

According to Senator Bagudu, “Our Constitution envisages cooperation among all tiers of government in advancing the welfare and security of the people. Equity must begin with revenue mobilisation, not merely allocation.”

Similarly, Senator Yahaya Abdullahi, Chairman of the Senate Committee on National Planning and Economic Affairs, stressed the need for consensus to ensure the reform’s success.

“No matter how brilliant the ideas or technical solutions are, without political consensus and a shared national vision, progress will remain elusive,” Senator Abdullahi said, urging stakeholders to build transparency and trust.

Hajiya Hadiza Bala Usman, Special Adviser to the President on Policy Coordination, called for a courageous and conclusive review that aligns fiscal reforms with Nigeria’s development.

The Executive Governor of Kwara State and Chairman of the Nigeria Governors’ Forum, Abdulrahman Abdulrazaq, who was represented by Dr. Abdulateef Shittu, commended the RMAFC for creating a neutral platform for dialogue and pledged the Forum’s support for a just and workable formula.

Alhaji Kabir Mashi, Chairman of the Revenue Allocation Formula Committee, gave assurance that the Commission will integrate all recommendations into a fair, balanced, and sustainable revenue formula for Nigeria.

The federal government has launched an independent data platform for the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) to ensure the timely and accurate rendition of solid minerals revenue data across states. 

The initiative is aimed at eliminating discrepancies in the figures submitted by government agencies and operators in the solid minerals sector.

The new platform, according to the Commission, will serve as a reliable, discrepancy-free data source that can be used for verification, comparison, and attribution of revenues generated from the solid minerals sector into the Federation Account.

Speaking in Abuja on Tuesday at a one-day sensitization exercise on the implementation of a new solid minerals data rendition template for effective revenue monitoring, the Chairman of RMAFC, Dr. Mohammed Bello Shehu, represented by Hon. Ibrahim Shettima, the Federal Commissioner representing Niger State in the Commission, said the new system was designed to close existing information gaps and strengthen transparency in revenue reporting.

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Dr. Shehu said, “It is imperative that the perceived discrepancies in the figures submitted by State Governments and the Ministry of Solid Minerals Development as revenue from the solid minerals sector into the Federation Account be addressed through the use of a uniform solid minerals data rendition template.”

According to him, the template will clearly specify the “scale of measurement used to report quantity, actual location of production aside from the State, the company mining the mineral, and the rate being sold per unit of measurement.”

He stated that this approach would improve accuracy and efficiency in the process of monitoring revenues from the solid minerals sector. “This process is aimed at enhancing effective revenue monitoring,” he explained.

Dr. Shehu pointed out that RMAFC’s role is constitutionally mandated, noting that “the Revenue Mobilisation Allocation and Fiscal Commission is empowered by paragraph 32 (a) of Part I to the Third Schedule of the 1999 Constitution of the Federal Republic of Nigeria (as amended), to, among other things, monitor accruals to and disbursement of revenue from the Federation Account.”

He further stated that the Commission has a responsibility to identify areas of potential revenue growth, lapses, or discrepancies in remittances from all economic sectors. 

“It is therefore a responsibility of the Commission to look into areas of potentials, lapses or discrepancies in revenue remittances into the Federation Account from all economic sectors for the purpose of advising the three tiers of government on appropriate ways to enhance their revenue, as enshrined in paragraph 32 (c) of Part I to the Third Schedule of the 1999 Constitution,” he said.

Dr. Shehu added that revenue monitoring from critical sectors such as solid minerals is crucial to improving national income and ensuring equitable distribution among the three tiers of government.

He said the sensitization exercise was designed to foster collaboration and information sharing across the six geopolitical zones. 

“Over the course of this exercise, the six geopolitical zones of the country will be engaging in sharing best practices and opinions in terms of solid mineral data rendition and forging partnerships that will undoubtedly contribute to the overall progress and development of the solid minerals sector, and indeed Nigeria,” he stated.

He urged participants to take full advantage of the engagement, stressing the importance of collaboration among stakeholders. 

“I urge all participants to actively leverage the experts and perspectives in the discourse. Let this be an occasion for constructive dialogue, meaningful networking, and a shared commitment to transforming our nation for the benefit of all Nigerians,” Dr. Shehu said.

The new solid minerals data rendition initiative marks a significant step in the federal government’s broader drive for transparency, accountability, and improved revenue generation in the solid minerals sector, which has been identified as one of Nigeria’s key non-oil growth areas.

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has commenced the verification of disputed and newly drilled crude oil and gas fields and wells in the Niger Delta region.

In a statement, the Commission said the exercise began on Monday, September 22, in Asaba, Delta State, and is being conducted by a technical team comprising officers from the Office of the Surveyor General of the Federation, the Nigerian Upstream Petroleum Regulatory Commission, and the National Boundary Commission, under the leadership of RMAFC.

Speaking to journalists in Asaba, the Chairman of RMAFC, Dr. Muhammed Bello Shehu, said the Commission had inaugurated the Inter-Agency Technical Committee to ensure an accurate identification of the locations of crude oil and gas fields and wells in disputed areas, as well as newly drilled sites.

“We announce the inauguration of the Inter-Agency Technical Committee and our unwavering commitment to accurately identify the locations of crude oil and gas fields and wells within the disputed areas and the newly drilled crude oil and gas wells,” Shehu said.

He explained that the initiative followed petitions from the governors of Anambra, Delta, Imo, Edo, Ondo, and Rivers states, who demanded to know the rightful owners and territorial boundaries of specific crude oil and gas assets.

According to Shehu, the exercise is designed to ensure fairness in revenue allocation based on accurate data and to address long-standing disputes among states over oil and gas asset ownership.

“The goal of the exercise is to ensure a fair and transparent allocation of oil revenue grounded in accurate data while addressing long-standing disputes over the location and rightful ownership of these vital energy assets,” he said.

Read Also: RMAFC begins verification of disputed oil, gas fields in Niger Delta

The Chairman disclosed that the team would verify the Aneize oil field within OML 143, as well as the Eyine and Ameshi fields. The team would also examine identified locations and verify the coordinates of newly drilled oil and gas wells spanning from 2017 to date.

He stated that the verification exercise was backed by constitutional provisions. “The 1999 Constitution, as amended, empowers the RMAFC, amongst other functions, to monitor accruals into and disbursement of revenue from the federation account. We are tasked with the plotting of coordinates of newly drilled, identified crude oil, gas fields, and wells across recognised oil-rich regions,” he said.

“This initiative is essential to ensure that every oil and gas-producing state receives its rightful share of the resources to reduce tension and safeguard the integrity of the federation account.”

Shehu further revealed that the exercise would extend to Rivers, Akwa Ibom, Bayelsa, Ondo, Edo, and Anambra states, in response to their complaints. He said the work would rely on geospatial data from the Nigerian Upstream Petroleum Regulatory Commission, which would be validated and plotted, with Surveyor-Generals of the affected states observing the process.

“This decision reflects our commitment to support the Commission in obtaining precise location data for these assets, ensuring that the 13 per cent derivation fund is equitably disbursed to the rightful boundary states among the oil-producing areas,” Shehu said.

He noted that the exercise was a step towards resolving long-standing disputes and promoting a more stable environment for exploration and development in the Niger Delta.

“By promoting transparency and fairness, we are laying the groundwork for a more stable and conducive environment for continued exploration and development across the region,” he added.

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has given an assurance that steps are being taken to ensure that every oil and gas-producing state receives its rightful share of resources, to reduce tensions and safeguard the integrity of the Federation Account.

The Chairman of the Commission, Dr Mohammed Shehu, stated this on Monday in Asaba, the Delta State capital, when he led his team and members of the Inter-Agency Technical Committee on the verification of disputed and newly drilled crude oil and gas fields and wells in the Niger Delta region.

Dr Shehu, who announced the inauguration of the Inter-Agency Technical Committee in collaboration with sister agencies, reaffirmed his unwavering commitment to accurately identifying the locations of crude oil and gas wells.

He said the membership of the technical committee comprises the Revenue Mobilization Allocation and Fiscal Commission, Representatives of the Nigerian Upstream Petroleum Regulatory Commission, Representatives of the Office of the Surveyor General of the Federation, and the Representatives of the Office of the National Boundary Commission.

Dr Shehu hinted that the initiative was driven by formal concerns expressed by the governors of some states, including Anambra—Imo, Anambra—Delta, regarding the rightful ownership and territory boundaries of specific crude oil and gas assets.

While highlighting the oil and gas assets to include the Aneize oil field within OML 143, as well as the Eyine and Ameshi fields, Shehu said the Inter-Agency Technical Committee would address the matters by thoroughly examining the identified locations and verifying the coordinates of newly drilled oil and gas wells within the area, spanning from 2017 to date.

The RMAFC Chairman said the Inter-Agency Technical Committee would extend its activities to Rivers, Akwa Ibom, Bayelsa, Ondo, Edo, and Rivers states, where it would rigorously assess and respond to the various complaints and petitions submitted by the states.

He revealed that the exercise would rely on geospatial data provided by the Nigerian Upstream Petroleum Regulatory Commission, which he said would be carefully validated and plotted, while the surveyor-generals of the affected states will observe the process.

Dr Shehu noted the Inter-Agency Technical Committee was tasked with plotting the coordinates of newly identified crude oil and gas fields and wells across recognized oil-rich regions.

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He stated, “This decision reflects our unwavering commitment to supporting the commission in obtaining precise location data for these assets, ensuring that the 13 % derivation fund is equitably disbursed to the rightful beneficiary states among the oil-producing areas”

”The decision to map and verify the coordinates of crude oil and gas wells represents a strategic and proactive measure aimed at resolving long-standing disputes among the affected states. This initiative is essential to ensure that every oil and gas-producing state receives its rightful share of resources, thereby reducing tensions and safeguarding the integrity of the Federation Account.

”By promoting transparency and fairness, we are laying the groundwork for a more stable and conducive environment for continued exploration and development across the region.”

Dr Shehu said Paragraph 32 (a) Part 1 of the Third Schedule to the 1999 Constitution of the Federal Republic of Nigeria (as amended) empowers the Commission, among other functions, to monitor accruals into and disbursements of revenue from the Federation Account.