The National Economic Council (NEC) on Thursday approved the request by the Revenue Mobilisation, Allocation and Fiscal Commission to seek a National Assembly amendment to its existing Act and to provide an alternative funding source for the commission.
This also includes an approval of 0.05 per cent of non-oil federation revenue as an alternative funding source for the commission.
NEC took the decision on Thursday during its 147th meeting chaired by the Vice President at the Aso Rock Villa, Abuja.
The Governor of Anambra State, Prof. Charles Soludo, who briefed State House correspondents after the meeting, said the draft repeal and replace legislation followed an earlier presentation by RMAFC seeking the council’s approval of RMAFC’s proposed bill to the National Assembly to amend its subsisting Act.
Soludo said during the NEC meeting, a report was presented regarding an earlier submission by the Chairman of the Revenue Mobilisation and Fiscal Allocation Commission on 21 November.
The submission sought a revision or repeal of the existing Act of Parliament that established the commission, proposing its replacement with a new legislative framework.
Additionally, RMAFC requested a review of alternative funding mechanisms for the institution.
The report highlighted the critical responsibilities of RMAFC as a pivotal institution in the federation and underscored the inadequate funding that hinders its ability to effectively carry out its tasks. The council also noted the draft repeal and replace legislation that was also pending.
Citing the endorsement of the Ministry of Justice in a letter dated 27 August 2024, to transmit a draft Bill to the National Assembly and to repeal its Law, RMAFC sought the council’s approval to forward the draft bill to the National Assembly for consideration and passage into Law and that RMAFC be allowed to access 0.05 per cent non-oil federation revenue as an alternative funding source to effectively implement its mandates.
In response, NEC approved the recommendation for improved funding for RMAFC and approved that the commission be funded with 0.05 per cent non-oil federation revenue based on the proposed tax reforms, subjected to further scrutiny by the National Assembly.
Soludo explained, “After deliberating this, the council noted and approved as follows. First, the RMAFC should forward the draft bill to the National Assembly for consideration and passage into law.
“Second, the council approved the recommendation for improved funding for RMAFC and approved that the commission be funded with 0.05 per cent non-oil federation revenue based on the proposed tax reforms and subjected to further scrutiny by the National Assembly.
“I know the commission had requested 0.75 per cent, but in the wisdom of NEC, it was…0.05 per cent, of course, subject to review by the National Assembly”.
The council also received a proposal for the establishment and re-adoption of historic sites to creative villages (Renewed Hope Creative Village) by the Ministry of Arts, Culture, Tourism and Creative Economy’.
As part of this initiative, some of these historic sites will be re-adapted into a creative village and new ones will be established where necessary through a transformative process that blends cultural preservation with innovation.
Governor Babajide Sanwo-Olu of Lagos State, who announced the development to journalists, said this involves repurposing these old spaces to create vibrant hubs for artists, entrepreneurs, and communities, all while maintaining the historical integrity of the site.
“Not only will it create jobs, but it will also enhance the revenue of the various locations and revenue generation for the government. It will also provide an opportunity for education for our teeming youth. It [the proposal] was well taken. The ministry brought forward a few prayers, which include working with sub-nationals and identifying areas of interest. A lot of these things are located in various states.
“They also requested for funding support from the various sub-nationals…to be able to execute a memorandum of understanding with sub-nationals. They have some bit of a working relationship. Having looked at all of the presentations and their prayers, the council noted that there is a need for stronger synergy between the ministry and the sub-nationals and to ensure that we put all of our creative minds together.
“But the Council also deemed it fit that the Federal Government also needs to support the ministry more by giving them an adequate budget so they don’t go to all of the sub-nationals caps in hand. So, this was unanimously agreed”, Sanwo-Olu explained.
Earlier, Vice President Shettima said the economic seeds sown by the federal government by way of reforms and interventions in 2024 are already beginning to bear fruits.
The Vice President urged members of the Council to brace up for the new year, taking into cognisance the extent to which the programmes, projects, and policies executed this year have influenced the course of the nation’s economy.
He noted that it was not just the final meeting of the Council for the year but also a session to assess progress made so far in advancing the aspirations of the Nigerian people and whether the actions and decisions taken have justly prioritised the collective good over individual interests.
He said, “Difficult decisions have been taken to redirect the course of our national economy, and the results are beginning to show. The recent report of a 3.46 per cent GDP growth in the third quarter of 2024 is a reassuring sign of the harvests ahead.
“This growth reflects not just numbers, but the collective efforts and sacrifices made by all stakeholders in this room. Our agenda today includes a presentation on the current state of the economy by the World Bank.
“This is a timely discussion as we approach what promises to be our harvest season. The economic seeds we have sown throughout this year, through reforms and interventions, are beginning to bear fruit”.
