COMMUNIQUE OF A ONE-WEEK RETREAT OF THE

REVENUE MOBILISATION ALLOCATION AND FISCAL COMMISSION,

HELD AT TAHIR GUEST PALACE,

KANO

 

PREAMBLE:

The one-week Retreat was essentially organised by the Commission to enlighten the recently inaugurated members on the functions of the Commission.  Statutorily, each State is represented by a Member including the FCT. Amongst the 37 Members, 9 Members including the Chairman were returned while 20 were newly appointed and 9 were continuing.

 

INTRODUCTION:

The Retreat commenced on Monday 30th May 2005 and was declared open by His Excellency, the Executive Governor of Kano State, Mallam Ibrahim Shekarau at Ni’imah Guest Palace, Kano.

 

DELIBERATION:

During the Retreat, several papers were presented on topical issues of the nation’s fiscal federalism. These papers include amongst others; revenue allocation formula, remuneration package, debt management, diversification of the economy, monitoring the accruals into and disbursement from the federation account including the 13% derivation fund.

 

In all, the Commission strongly believed that even though it has brought about transparency, equity and fairness on the nation’s fiscal structure over the last five years, there is still a lot to be done in order to achieve absolute transparency in the operation of the nation’s fiscal matters for the purpose of enhancing wealth creation, generation and distribution.

In the course of the Retreat, members deliberated on the following:

 

  1. OIL AND GAS SECTOR

The Retreat observed that the oil sector, which has been the mainstay of the nation’s economy, has not been managed in a transparent manner, as there are leakages and loopholes in its operations, which made the nation lose substantial revenue. Of particular concern, the retreat noted that despite the huge investment in Gas by the government, the contribution of gas to the Federation Account has remained almost zero. In this regard, the Commission during the retreat strongly resolved not to compromise its constitutional mandate of monitoring accruals into the Federation Account from Oil and Gas Sector.

 

  1. REMUNERATION PACKAGE

The Retreat noted with dismay the absence of full compliance with the “Certain Political and Public Officers’ Act 2002” which provided for the remuneration package for public and political office holders. It was observed that there are still government officials occupying government houses, using government vehicles and other benefits monetized. The Commission therefore urged all organs of government to abide by the law of the land

 

  1. REVENUE ALLOCATION FORMULA

On Revenue Allocation Formula for the nation, the Retreat called upon the National Assembly to urgently consider the Bill before it, so as to reflect changing realities. This is because the existing Revenue Allocation Formula has been long overdue for review.

 

d. STATE JOINT LOCAL GOVERNMENT ACCOUNT 

In order to comply with the law “Monitoring of Revenue Allocation to Local Government Act 2005” recently signed into law by the President, the Commission has deployed its members to all States of the Federation other than their as provided in the Monitoring Act. As from the Month of June 2005, the Commission would proactively participate in the State Joint Local Government Account Allocation Committee. The Commission, in this regard, resolved to ensure strict observance of transparency and equitable distribution of funds from the State Joint Local Government Account.

 

  1. DEBT MANAGEMENT

The Retreat was alarmed by the rate at which the nation’s external debt keeps on increasing despite all efforts in debt repayments over the years. It noted that the problem with the nation’s external debt centres around inconsistencies in debt policies and the continued receipt of more loans in the name of assistance. The Commission was of the view that the continuing accumulation of debt has an adverse macro-economic impasse that is presently strangulating the economy. In this connection, it urged the Federal and State Governments to use some part of their share from the excess crude account to settle some of their external debt obligation.

 

  1. DIVERSIFICATION

During the Retreat it was observed that Nigeria represent a striking example of a nation without progressive and radical zeal to diversify its economy and break the monopoly of oil despite all the resources in Solid Minerals, Agriculture, Science and technology among others. The retreat was of the view that the nation’s economic prosperity can only be guaranteed through diversification of the economy. It therefore advised the federal, State and Local Governments to show proactive interest in diversifying the economy.

 

  1. EXCESS CRUDE

The Retreat viewed seriously the need for cautious sharing of the funds in the excess crude account and thus suggested that the Federal and States should use part of the money to offset debts, diversify the economy and provide employment opportunities to our teeming un-employed youths.

 

  1. ANNUAL BUDGET

The Retreat noted the significant role the Commission has been playing in federal budget preparation through advices. It therefore pledged to extend this impressive impact on Federal Government’s budget to State and Local Governments with the hope of achieving 100% implementation.

 

CONCLUSION

In general, the Retreat has been educative, informative, engaging and rewarding success. This would not have been possible without the support and co-operation of the President, Commander in-chief of the Federal Republic of Nigeria, Chief Olusegun Obasanjo and particularly, His Excellency, Mallam Ibrahim Shekarau, the Executive Governor of Kano State. The Commission is indeed grateful.

 

And for the press, the Commission has appreciated your objective and balance reporting of the retreat and thank you very much for that wonderful exhibition of journalism ethics.

 

God bless.