PROGRESS REPORTS

Since its inception, the Commission has done a lot of work both in the area of Revenue Mobilization and allocation. For example, the Armed Forces Ruling Council (AFRC) approved the first Revenue Allocation Formula prepared by the Commission with minor changes and it become operational with effect from January 1990. The revenue allocation formula currently in use is slightly different from the one that came into effect in 1990 due to reviews undertaken by the Commission in the past.

The Commission was involved in the writing of the white paper on the report of the Committee on Modified Value Added Tax (MVAT) as a form of taxation and this led to the introduction of VAT, a tax that has considerably increased the revenue of all tiers of Government.

It participates actively at the Monthly Federation Accounts Allocation Committee (FAAC) meetings so as to ensure that allocation of funds from the Federation Account is done as per the approved Allocation Revenue Allocation Formula.

The Commission undertakes a nationwide verification of some of the indices used in revenue allocation, such as primary/secondary schools enrolment; hospital beds and internally generated revenue of states and local governments. It submits its reports to government.

The Commission has also been involved with designing appropriate strategies and policies in the area of revenue mobilization and fiscal policy. At present it monitors some federal revenue generating agencies like Nigerian National Petroleum Corporation, Federal Inland Revenue Service and Nigerian Customs Service.

Through its various market surveys, the Commission advises local government councils on ways to improve their revenue drive from different segments of the market.

The Commission, since its inauguration on 20^th September 1999, has worked out and submitted the report on the remuneration packages for political office holders at the three tiers and arms of government. The packages for the public officers at the Executive, Legislative and the Judiciary levels were submitted to relevant authorities in August/September, 2000.

The Commission also conducted a verification exercise on some disputed Oil Wells in the Niger/Delta Region a report of which has been submitted to government.

It has in addition, introduced a novel and transparent revenue sharing indices known as Direct Percentage of the Federation Account (DPOFA) which allows each beneficiary to know the amount due to it from Federation Account once the quantum of disbursement is known.

The Commission, as part of it major constitutional responsibilities, also fashioned out and submitted a proposal on a new revenue sharing formula for the nation in August 2001 which many described as a “revolutionary approach” to our nation’s fiscal policy. But due to the Supreme Court’s verdict on Resources Control of April 2002, the formula at NASS was withdrawn and reviewed to reflect the judgment.In addition it:

*Recommended the implementation of State Local government joint account for transparency and accountability of fund disbursement.

*Undertook an exercise to determine the seaward boundary that fall between the perimeters of littoral states.

*Undertook verification exercise on external debt repayments with states in conjunction with Debt Management Office to determine the actual indebtedness to multilateral institutions.

*Recommended temporary measures on the application of revenue allocation after the Supreme Court’s verdict on the Resources Control which had nullified the first line charges, special funds and the funding of JVC.

*Organized educative seminars and workshops on revenue generation, allocation and fiscal efficiency.

*Regularly met and liaised with the stakeholders and local governments as well as the executive, legislative and judicial arms on constitutional and fiscal matters.