The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) has revealed that a total sum of N7,314,129,314,386.08 ($17.9 billion) accrued into the Federation Account between July and December 2023, a significant increase from the N5,244,037,636,561.60 ($12.8 billion) realized in the first half of the year.
In a press statement, RMAFC Chairman Mohammed Bello Shehu attributed the increase to improved revenue generation and remittances by various government agencies, including the Nigerian National Petroleum Company Limited (NNPCL), which remitted N874,645,145,704.30 ($2.1 billion) in the second half of the year, compared to zero remittance in the first half.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) remitted N1,568,961,616,920.99 ($3.8 billion), while the Federal Inland Revenue Service (FIRS) remitted N3,653,693,895,023.45 ($8.9 billion). The Nigeria Customs Service (NCS) contributed N1,216,828,656,737.34 ($3 billion) to the Federation Account.
Shehu emphasized that the significant increase in revenue generation and remittances by these agencies highlights the progress made in boosting national income and supports the government’s efforts to improve the country’s fiscal position.
However, the RMAFC Chairman expressed concern about the practice of some Revenue Generating Agencies (RGAs), including the NNPCL, financing “FGN Priority Projects” by withholding funds from the Federation Account, stressing that all NNPCL Joint Venture Profit Tax (PPT) should be channeled through the FIRS and deposited into the Federation Account.
Shehu also advocated for a Performance-Based cost of collection system for RGAs, where the cost of collection received by these agencies would be tied to their actual revenue performance, in a bid to incentivize them to be more proactive in generating revenue for the Federation Account.
The RMAFC pledged its continued commitment to reviewing Federation Account activities and advocating for measures to curb revenue leakages, while expressing support for President Bola Ahmed Tinubu’s Renewed Hope Agenda and urging collaboration to achieve sustainable economic growth.
