In an interactive session with the House of Representatives Committee on Finance, Mohammed Bello, Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), unveiled the agency’s remarkable recovery of unremitted revenue amounting to over N500 billion for the federal government from various government-owned institutions. The committee, chaired by James Faleke, the lawmaker representing Ikeja Federal Constituency, Lagos State, received these revelations during the recent discussion.
Mr. Bello provided a detailed breakdown of the recoveries made by the RMAFC, outlining the progress achieved over the years. The RMAFC chair disclosed that, with the assistance of forensic experts engaged by the commission, a sum of N14 billion was successfully recovered between 2008 and 2012.
During the subsequent period of 2012 to 2015, the commission recovered an impressive sum of N60.981 billion. The recoveries continued in the years that followed, with over N312 billion reclaimed between 2016 and 2019. In a significant development, the payment for these recoveries was eventually made in the 2022 fiscal year.
In September 2023, RMAFC secured the recovery of N98 billion from the Nigerian National Petroleum Company Limited, and the entire sum was remitted to the national treasury. Moreover, the commission reclaimed N79.102 billion from Federal and eight State Ministries, Departments, and Agencies in 2023.
The RMAFC chairman further emphasized the commission’s ongoing expansion of its operations to 17 states across the Federation, demonstrating the commitment to recovering more revenue for the Federation Account.
Mr. Bello highlighted that before 2011, revenues derived from royalties and solid minerals were deposited into the Consolidated Revenue Fund. Following the commission’s diligent efforts, the solid mineral component of the Federation Account was established in November 2011, leading to the approval of a 13 percent derivative fund for states and local government areas, distributed according to a specific formula.
Additionally, the commission secured approval for a 10 percent monthly payment from the Natural Resources Development Fund, with 1.68 percent being deducted and set aside. The previous administration approved the allocation of N30 billion for the growth of the sector from the Natural Resources Development Fund.
During the discussion, James Faleke raised concerns about the financial burden borne solely by the federal government regarding the salaries of RMAFC Commissioners. He argued that these salaries should be drawn from the Federation Account to alleviate the fiscal responsibility.
Faleke expressed displeasure about the management of public funds, alleging that many institutions indicted for financial recklessness end up using public funds to pay back the unremitted amounts. He demanded comprehensive reports from the RMAFC chairman, specifying the agencies from which the unremitted revenues were recovered and additional details regarding the various recoveries made by the commission.
“In 2008 and 2012, you recovered N14 billion, from where? Which agency paid? We need a comprehensive list. For you to get back to an agency and say you owe us $10 or N10 million, where will they get the money to pay back? When you accuse them, it means they have spent that money. So, for them to pay back, they also use government money to pay you back,” Faleke emphasized, underlining the importance of transparency and accountability.
The committee requested further clarity on these recoveries, including the N16.9 billion and N312 billion sums, among others, urging the RMAFC chairman to provide in-depth information regarding the recovered revenue.
This development signifies a