Nigeria’s House of Representatives has initiated a number of bills which seek to compel key federal ministries, departments and agencies (MDAs) to remit all revenues generated into the Federation Account, BusinessDay authoritatively gathered.
The bills seek to amend various sections of the Acts of Parliament which established some of the identified regulatory agencies including the Standard Organisation of Nigeria (SON); National Agency for Food and Drug Administration and Control (NAFDAC); National Environmental Standards and Regulations Enforcement Agency (Establishment), 2007; and Nigerian Investment Promotion Commission Act, 2004, and permitted them to spend up to 80% of their operating surplus.
The proposed amendments seek to strengthen section 162 of the 1999 Constitution (as amended) which provides that all revenues generated shall be into the ‘special account’ called ‘the Federation Account’ except the proceeds from the personal income tax of the personnel of the Armed Forces of the Federation, the Nigeria Police Force, the Ministry or department of government charged with responsibility for Foreign Affairs and the residents of the Federal Capital Territory, Abuja.
The legislative move is coming at a time of substantial drop in government revenues, as authorities battle to fund expanded annual budgets.
The bills, when assented to by the Presidency, are expected to block leakages and complement the Federal Government’s plan to raise over N847 billion from federal public institutions in the 2018 financial year.
Ben Akabueze, Director-General of the Budget Office of the Federation, had during an interactive session held recently with the House of Representatives Committee on Aid, Loans and Debt Management, urged the National Assembly to promulgate laws that will enhance revenue generation through taxes and compel all the N40 trillion worth of State Owned Public Enterprises to remit N847 billion (representing 2% of their value) to government coffer, through intensified oversight by the Legislature.
“What we have is revenue generation challenge not debt problem. Our focus should be on how to drive revenue. We looked at things like the state owned enterprises, for the National Assembly to bring its oversight power for these agencies to generate funds,” Akabueze urged.
Section 162(2) of the Constitution empowers the President, upon the receipt of advice from the Revenue Mobilisation Allocation and Fiscal Commission, to table before the National Assembly, proposals for revenue allocation from the Federation Account, and that, “in determining the formula, the National Assembly shall take into account, the allocation principles, especially those of population, equality of states, internal revenue generation, land mass, terrain, as well as population density; Provided that the principle of derivation shall be constantly reflected in any approved formula as being not less than thirteen percent of the revenue accruing to the Federation Account directly from any natural resources.
Subsection 3 further states that “any amount standing to the credit of the Federation Account, shall be distributed among the Federal and State Governments and the Local Government Councils in each State, on such terms and in such manner as may be prescribed by the National Assembly.”
Another bill seen by BusinessDay, seeks to “amend the Companies and Allied Matters Act C20 Laws of the Federation of Nigeria, 2004 to provide for the payment of all monies received by the Commission into the Federation Account in accordance with Section 162 of the Constitution of the Federal Republic of Nigeria 1999 (as amended).”
The amendment bill sponsored by Gyang Istifanus Dung, seeks to alter the Companies and Allied Matters Act, Cap 59, LFN 1990 by inserting new section 12, and amend sections 321(2), 322(4), 324 and 327(2) respectively.
The newly proposed section 12 to the CAMA provides that the “Funds of the Commission shall consist of: such funds as budgetary allocations, trust funds, subventions, grants-in-aid and loans as may, from time to time, be made by the Federal Government.
“Such sums or property which may, from time to time by way of loans or grants and gifts, accrue to the Commission form any other Government, non-governmental bodies or individuals; and
“Other monies received by the Commission which may in any way, become payable to or vested in the Commission by way of revenues, fees, levies, taxes, penalties, gifts, grants-in-aid, testamentary disposition and all other assets that may from time to time accrue to the Commission.
