By: U. K. Umar, PhD, mni
Director Allocation, RMAFC
Last week, public policy commentator Waziri Adio published a piece questioning the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC)’s new funding arrangement, describing its budgetary expansion as excessive and unnecessary.
While the commentary was elegantly framed, it missed the constitutional and historical essence of RMAFC’s mandate, as well as the realities of Nigeria’s current fiscal challenges.
This response seeks to clarify misconceptions and affirm that the new funding model is neither a jackpot nor a theatre of waste, but a strategic safeguard for Nigeria’s democracy and federalism.
The Constitutional Vision of RMAFC
From inception, Nigeria’s founding fathers understood that revenue is the lifeblood of the state and that its distribution must be handled with fairness and transparency to preserve national unity.
It is for this reason that the 1999 Constitution elevated RMAFC to the status of a permanent body, making it one of just 14 constitutional executive commissions.
Its core mandate is to monitor accruals and disbursements from the Federation Account, periodically review the revenue allocation formula, and ensure equity in the sharing of the nation’s commonwealth.
RMAFC was deliberately created as the referee of Nigeria’s federal compact—a neutral safeguard against fiscal domination and a bulwark for democracy. Weakening such an institution through chronic underfunding undermines the very guardrails of federalism.
The Cost of Decades of Underfunding
For decades, RMAFC was deprived of adequate resources, leaving it unable to fully perform its oversight role.
The result was disastrous: opacity in revenue-generating agencies, unchecked leakages, and a Federation Account in perpetual crisis.
This vacuum crippled economic diversification and fiscal stability, consequences of an incapacitated revenue referee.
Why the New Funding Is Essential
The reforms granting RMAFC 0.5% of non-oil revenues as a first-line charge are not luxuries but necessities. This arrangement ensures predictable and independent funding, allowing RMAFC to resist political interference and function effectively.
With modern tools like real-time dashboards, forensic audit systems, and global data analytics now crucial to revenue monitoring, the commission can no longer rely on paltry annual budgets of ₦2–3 billion.
The new funding provides the foundation for technological advancement, capacity building, and improved oversight across all tiers of government.
Beyond efficiency, the reforms strengthen federalism at a time when debates on restructuring and equitable revenue distribution dominate national discourse. A well-resourced RMAFC ensures fairness, fosters cohesion, and sustains democracy.
Correcting Misconceptions on Budget Growth
Critics highlight the jump from ₦5.6 billion to over ₦100 billion as wasteful. This interpretation is misleading. The increase reflects a deliberate shift towards aligning RMAFC’s capacity with Nigeria’s revenue realities.
Much of the expenditure will go into capital projects such as building data centres, equipping monitoring hubs, and deploying staff nationwide—investments designed to yield long-term dividends in accountability and transparency.
Additionally, RMAFC plans to establish a dedicated training institute to develop a world-class workforce equipped with the skills and tools to rival other leading revenue agencies. This complements the President’s vision for a reformed and efficient “Nigeria Revenue Service.”
Global Parallels and Historical Lessons
Worldwide, revenue oversight agencies thrive only when backed by financial autonomy. From the U.S. Internal Revenue Service (IRS) to the Canada Revenue Agency (CRA) and South Africa Revenue Service (SARS), independence and adequate funding have proven to be the turning point for fiscal accountability. Nigeria must learn from these models.
Conversely, underfunded oversight agencies in Nigeria—the Fiscal Responsibility Commission, Public Complaints Commission, and even the Auditor-General’s office—remain weak and ineffectual. The lesson is clear: watchdogs cannot bite without resources.
Conclusion: A Call for Perspective
Revenue allocation is inherently sensitive, but the greater risk lies in weakening the constitutional referee of Nigeria’s federalism. Empowering RMAFC is not about enriching an institution but about protecting citizens from corruption, fiscal imbalance, and elite capture.
Our founding fathers did not design RMAFC as an ornament but as a pillar of accountability. For too long, it was left to wither, to the nation’s detriment. Today, Nigeria has a chance to correct that error.
The new funding arrangement is a step towards safeguarding democracy, strengthening federalism, and consolidating our democratic dividends.
Rather than resist this reform, Nigerians should demand transparency in RMAFC’s utilisation of funds while supporting its renewed mandate. Anything less would betray the vision of our nationalists and risk returning the nation to the fiscal chaos of the past.
