Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has stated that there is currently no concrete evidence to support allegations that some state governments are diverting funds allocated to local governments.
Chairman of the Committee on Inland Revenue Services at RMAFC, Mr. Bimbo Kolade, disclosed this in an interview with NAN on Monday in Abuja.
He said: “These are mostly street stories.
“We hear of such claims, but there has never been concrete evidence presented to the commission that proves any specific case of diversion.”
Limited Oversight Powers
Kolade acknowledged that RMAFC’s constitutional mandate is limited to distributing revenue from the Federation Account, and its monitoring role is curtailed after funds are allocated.
He noted that a Supreme Court ruling has further limited the commission’s oversight powers post-disbursement.
“Our primary role is the distribution of revenue from the Federation Account,” Kolade said.
Despite these limitations, RMAFC provides advisory support to local governments on fiscal matters and strategies to improve their Internally Generated Revenue (IGR). Kolade stated, “We regularly advise local governments on how to diversify their economies and increase revenue, especially in sectors like agriculture and solid minerals.”
*Implementation of Supreme Court Judgment*
Kolade also discussed the Supreme Court’s 2023 judgment, which mandated that local governments should receive their allocations directly from the Federation Account.
However, implementation has been delayed due to resistance from the Nigerian Governors’ Forum and administrative bottlenecks.
“Although the Supreme Court made that ruling some time ago, local governments are still not receiving funds directly,” Kolade said.
Kolade emphasized the need for a clear and transparent mechanism to ensure that local government funds reach them and are used to improve lives at the grassroots.
He urged local governments to leverage their comparative advantages to boost their IGR, saying, “For instance, in Oyo State, out of the 33 Local Government Areas, about 26 are agrarian and can explore agricultural partnerships and solid mineral development to strengthen their economic base.”.
NAN
