The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Nigeria’s agency responsible for revenue distribution, has stated that there is currently no verified evidence to substantiate claims of state governments diverting funds meant for local administrations. The announcement follows persistent public skepticism over the transparency of fiscal allocations to Nigeria’s smallest governance units.
Bimbo Kolade, Chair of the RMAFC’s Committee on Inland Revenue Services, addressed these concerns in an interview on Monday, emphasizing that allegations of diversion remain unproven. “These stories circulate widely, but no concrete evidence has been formally presented to our commission,” he told the News Agency of Nigeria (NAN) in Ibadan. Despite this, Kolade recognized mounting demands for improved oversight of how local governments utilize their allocations, particularly as funds continue to pass through state-level authorities before reaching grassroots bodies. Civil society groups have long criticized this indirect disbursement model, arguing it enables financial mismanagement.
Under Nigeria’s constitutional framework, the RMAFC’s oversight role is restricted after distributing revenue from the centralized Federation Account. A Supreme Court ruling further limited the commission’s post-disbursement monitoring powers, shifting enforcement responsibility to other agencies. Kolade clarified that while RMAFC cannot compel compliance, it provides guidance to local governments on boosting internally generated revenue (IGR) through sectors like agriculture and mining. For instance, he cited Oyo State, where 26 of 33 local councils could leverage agrarian resources to reduce reliance on federal allocations.
Notably, a 2023 Supreme Court judgment mandated direct transfers of local government funds from the Federation Account, bypassing states. However, implementation remains stalled due to pushback from state governors and administrative hurdles, including requirements for local councils to open Central Bank of Nigeria accounts. Kolade stressed the urgency of establishing transparent mechanisms to ensure allocations directly benefit communities, while urging local leaders to capitalize on region-specific economic opportunities.
Though constrained by legal boundaries, the RMAFC reaffirmed its commitment to advocating fiscal accountability across all levels of government, even as debates over resource management in Africa’s most populous nation persist.
