Nigeria to Refund Nearly N600 Billion from Natural Resources Fund, Says RMAFC

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has reported that the Federal Government illegally deducted almost N600 billion from the Natural Resources Development Fund. This announcement was made by RMAFC Chairman Dr. Mohammed Bello Shehu during a recent event in Abuja.

Shehu stated that efforts are in progress to recover this money for the benefit of states and local governments. He expressed confidence that the current administration is committed to returning these funds, which will help local governments and states access the resources they need.

He praised President Bola Ahmed Tinubu for allowing states to access the fund and noted that the President has agreed to share the money that has already accumulated in the fund among all states. Shehu highlighted Tinubu’s experience as a former governor, which has helped him understand the challenges of revenue distribution.

Shehu also mentioned that the RMAFC has finished reviewing the revenue allocation formula, which determines how government funds are distributed. This review took about two years and involved discussions with various stakeholders. The current formula, which has not changed significantly since the 1990s, is seen as outdated.

Under the existing system, the Federal Government receives over half of the funds, while states and local governments receive smaller portions. The RMAFC is now working with the Federal Ministry of Justice to draft a bill for a new allocation formula, which will soon be presented to the National Assembly.

In addition to these developments, Shehu discussed the RMAFC’s achievements in improving its operations and staff pay over the past three years. He noted that the commission has upgraded employee salaries and is working to better monitor revenue-generating agencies.