The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has unveiled a significant surge in revenue inflow to the Federation Account, totaling N7.3 trillion between July and December 2023.
This revelation, signifying a notable increase from the preceding half-year, underscores a positive trend in revenue generation.
In a press statement released by Mr. Mohammed Bello Shehu, Chairman of RMAFC, the commission highlighted the meticulous disbursement process. From the total gross revenue inflows, N1.69 trillion was allocated to the Exchange Gain Differential Account, leaving a balance of N5.475 billion for distribution among the three tiers of government.
However, statutory deductions, amounting to N3.26 trillion, were approved by the Office of the Accountant-General of the Federation (OAGF). This resulted in a net balance of N2.2 trillion available for distribution during the specified period.
Furthermore, Shehu elucidated that out of the statutory deductions, N2.251 trillion was allocated to the Non-Oil Excess Account, with a remaining net statutory deduction of N1.016 trillion, augmented for distribution among the three tiers of government from reserve accounts.
Additionally, the RMAFC disclosed remarkable remittances by Revenue Generating Agencies (RGAs) during this period. Notably, the Nigerian National Petroleum Company Limited remitted N874.64 billion, witnessing a substantial increase from zero-remittance in the preceding half-year.
Other notable contributions included N1.56 trillion from the Nigerian Upstream Petroleum Regulatory Commission and N3.65 trillion from the Federal Inland Revenue Service.
The surge in government earnings, attributed to the removal of fuel subsidy and the unification of the foreign exchange market, presents a favourable outlook for revenue mobilisation. However, citizens continue to grapple with the adverse economic effects of these policies.
In a bid to enhance revenue generation and remittances, Shehu advocated for a performance-based approach to the cost of collection received by RGAs. Emphasising the need for alignment with revenue performance, he proposed tying the cost of collection to the revenue generated against set targets, as outlined in the Appropriation Act.
The proposal aims to incentivize RGAs to adopt proactive strategies for revenue generation, ultimately bolstering the nation’s fiscal health. Shehu reiterated the commission’s commitment to fostering robust revenue mobilisation mechanisms for sustainable economic growth and development.
