The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has made a strong case for the amendment of the Nigerian Constitution to give full effect to the Supreme Court’s ruling on financial autonomy for local governments.

The Commission is seeking a direct transfer of funds from the Federation Account to local government councils, bypassing the State Joint Local Government Account currently mandated by the Constitution.

This position was made public in a communiqué issued at the end of a high-level three-day retreat of the Commission held in Uyo, Akwa Ibom State.

The document was presented by Hon. Ismail Muhammed Agaka, Federal Commissioner representing Kwara State and Chairman of the Public Affairs and Communications Committee of the Commission.

The Commission argued that Section 162(6) of the Constitution—which requires each state to maintain a State Joint Local Government Account into which all allocations to local councils from both the Federation Account and the state are paid—has become inconsistent with the spirit of the Supreme Court ruling delivered on July 11, 2024.

That landmark decision established the financial autonomy of local government councils across the country, effectively rendering the current structure of joint accounts obsolete.

According to the communiqué, this constitutional provision now poses a barrier to the direct disbursement of funds to local governments and needs to be restructured to align with the judicial directive. The Commission recommended that Section 162(6) be amended to facilitate the direct crediting of local government allocations from the Federation Account without state-level interference.

In addition to this, the Commission also proposed that the remuneration of local government chairmen and councillors be enshrined in the 1999 Constitution (as amended), placing them among the listed beneficiaries of constitutionally backed remuneration packages. Currently, their pay structure lacks such constitutional recognition, which the Commission sees as a gap in the nation’s revenue framework.

Another key proposal from the retreat is the amendment of Section 162(2) of the Constitution to establish a clear timeline for the President to submit RMAFC’s revenue allocation proposals to the National Assembly.

The Commission noted that such a timeline would foster predictability and transparency in fiscal planning.

Furthermore, the RMAFC called for a comprehensive review of the existing revenue allocation formula, which has remained unchanged for 16 years despite the dynamic fiscal needs of the three tiers of government. The Commission noted that the current formula no longer reflects present-day realities and should be reviewed to meet emerging economic demands.

Beyond constitutional reforms, the communiqué contained several structural and institutional recommendations aimed at strengthening Nigeria’s fiscal governance. Among them is the establishment of a National Revenue Dashboard—an integrated digital platform for real-time tracking of revenue inflows to improve transparency and accountability in public finance.

The Commission also proposed changes to the Petroleum Industry Act (PIA), advocating for an expansion of the NNPC Limited’s Board to include representatives of states, local governments, and the Central Bank of Nigeria. This, according to the Commission, would ensure broader stakeholder involvement in the governance of the country’s oil and gas sector.

Additionally, the RMAFC suggested the creation of a distinct Office of the Accountant-General of the Federation, separate from the Office of the Accountant-General of the Federal Government. This separation, the Commission believes, will promote clearer oversight functions, enhance credibility, and strengthen the fiduciary roles of government accountants at the federal level.

On its statutory responsibilities, the Commission reaffirmed its commitment to its constitutional duty of monitoring revenue accruals and ensuring the timely and accurate remittance of all revenue due to the Federation Account by the various revenue-generating agencies.

It also stated that, based on the Constitution, the advice of RMAFC on the remuneration of political, public, and judicial office holders is binding on both federal and state governments—a legal provision the Commission pledged to enforce more robustly.

Speaking at the conclusion of the retreat, Hon. Agaka noted that the deliberations marked a turning point in the Commission’s efforts to recalibrate its operational focus in line with Nigeria’s evolving fiscal landscape.

“The retreat marked a significant milestone in repositioning the Commission to respond more effectively to Nigeria’s evolving fiscal realities,” he stated.

Also addressing the participants, Chairman of the Commission, Dr. Muhammed Bello Shehu, said the retreat was organised to equip newly inaugurated members with a clearer understanding of their roles and strengthen the institution’s responsiveness to the nation’s economic challenges.

According to Dr. Shehu, the retreat supports the broader objective of aligning the Commission’s activities with President Bola Ahmed Tinubu’s Renewed Hope Agenda by ensuring equitable distribution of national resources and enhancing fiscal transparency across all levels of government.

The retreat, themed “Understanding the Role of RMAFC and Other Stakeholders/Agencies in Nation Building,” brought together commissioners and senior management staff of the Commission to deliberate on policy reforms, institutional efficiency, and strategies for long-term fiscal sustainability.