The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has declined the request made by the Ministry of Police Affairs, for the funding of the Nigerian Police Trust Fund as requested through 0.5 percent of the total revenue accruing to the Federation Account, citing a constitutional breach in such request.
Muhammad Maigari Dingyadi, Minister of police affairs, in a letter directed to the Ministry of Finance Budget and National Planning made reference to the establishment Act 2019 of Police Trust Fund sources of funding to include; 0.5 percent of the total Revenue accruing to the federation account, 0.005 percent of the net profit of companies operating business in Nigeria.
Others include; Any takeoff grant , special intervention fund as may be provided by the federal, state and Local Government of the Federation, Such money as may be appropriated to meet the objectives of the Act by the National Assembly in the Budget, Aids, grant, and assistance from international bilateral and multinational Agencies, Non-governmental Organizations and private sectors, donations, endowment, bequests, and gifts, whether of money, land or any other property from any source and Money derived from investment made by the Trust Fund.
The minister further requested the Ministry of Finance to give directive for the deductions of the monthly share of the Police Trust Fund in the Federation Account into a dedicated account as from January 2020.
“The Federal Inland Revenue Service (FIRS) to deduct 0.005 percent of the Net Profit of the companies operating in Nigeria as stated in the Act effective from January 2020”.
Other request include; the Accountant General of the Federation to open a dedicated account for the Police Trust Fund in the Central Bank of Nigeria (CBN) and approval to nominate a representative of the Federal Ministry of Finance in the Board of Trustees as stated in the act establishing the Trust Fund.
The Chairman Revenue Mobilisation Allocation and Fiscal Commission, Elias Mbam in his response to the request said that the sources of the Trust Fund which shall consist of the amount consisting 0.5 percent of the total revenue accruing to the federation Account is inconsistent with the provision of S.162(3) of the 1999 constitution as amended.
“The S.4 (1) (a) of the Nigerian Police Trust Fund (Establishment) Act 2019 is inconsistent with the provision of the constitution cited above”.
“Any law that is inconsistent with the provisions of the constitution of the Federal Republic of Nigeria, that law shall be null and void to the extent of its inconsistency”.
Mbam, speaking further said that the Supreme Court had laid to rest the proper mode of distribution of funds stating that the only beneficiaries to the federation account are the Federal Government, State Governments and Local Government Councils in each state as provided in S. 162(3) of the constitution of the Federal Republic of Nigeria.
“The Supreme Court had laid to rest the proper mode of distribution of fund according to Federation Account in A –G of the federation Vs A- G of Abia State (NO . 2)(2002)6 NWLR, Pt. 764. 542, when it declared as unconstitutional , null and void the following; The funding of the judiciary as a first line charge on the Federation Account; Servicing of external debt as a first line charge on the Federation Account; Funding of joint Venture contracts and NNPC priority project as a first line charge on the Federation Account; Unilateral allocation of 1 percent of revenue in the Federation Account to the Federal Capital Territory”.
“The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) is saddled with the responsibility to monitor accruals of revenue into the Federation Account from revenue generating agencies and disbursement of all the accruals to the three tiers of government made up of Federal, state and local Governments while blocking leakages”.
RMAFC also gives advice to the Federal, State and Local Governments on fiscal efficiency and method by which their revenues can be increased.
