A Review of the Nigerian Energy Industry

Non-oil producing states to get 13% derivation – RMAFC

Chairman RMAFC, Mr Elias Mbam07 November 2014, Abuja — A new revenue formula that will include non-oil producing states in the 13 per cent derivation principle is soon into effect, the Revenue Mobilization Allocation And Fiscal Commission (RMAFC), has said.

Speaking when the House Committee on Finance visited the Commission as part of its oversight function, the Chairman of the Commission, Engr Elias Mbam, said the new principle will replace the current one that has been in existence for 10 years.

He said that the RMAFC is the only government agency empowered to review and submit proposals on revenue allocation formula to the President who shall table same to the National Assembly for consideration.

Accordingly, he said, the Commission has completed its work on the new revenue allocation proposal that will be submitted to the President for onward transmission to the National Assembly for authentication and legalisation.

Mbam maintained that the current derivation and other principles for revenue sharing between the federal and other levels of government needs changing to accommodate new realities in the land.

According to him, the Commission hopes the proposal will be accommodated in the on-going efforts by the National Assembly to amend in the 1999 constitutions.

It would be recalled that the NASS recently transmitted the amended version of the 1999 constitution to President Goodluck Jonathan for assent.

He said the RMAFC has collaborated with the Federal Ministry of Mines and Development to ensure that the solid mineral sector contributes revenue to the Federation Account and thus further enrich the overall purse for the benefit of all.

He explained further that the Commission has prepared a template for the sharing of the 13% derivation for solid minerals producing states, noting that when the template is approved, contributing states will henceforth enjoy the 13 per cent derivation on the revenue accruing from their states.

Speaking further on the salary of public officers, Mbam informed the committee that the RMAFC relied Paragraph 32 (d) of Part 1 of the 1999 Constitution (As amended) to determine the remunerations of certain political office holders including President, Vice-President, Governors, Ministers, Commissioner and Special Advisers, Legislators and other office holders.

Responding on the issues raised, Rep. Abdulrahaman Terab, who led the team on the oversight functions, said the Commission needs to be empowered to effectively discharge of its functions.

*David Odama – Daily Independent

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