Nigerian govt cracks down on revenue leakages, orders sanctions for defaulting agencies

The Nigerian government is tightening its grip on revenue accountability, and this time, it’s taking no prisoners. The Secretary to the Government of the Federation (SGF), Senator George Akume, has directed the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) to sanction all revenue-generating agencies that fail to comply with collection and remittance laws.

Akume made this declaration in Abuja on Tuesday during the inaugural plenary session following the swearing-in of newly appointed RMAFC commissioners. His message was clear: the era of laxity and leakages is over.

“Government expects key deliverables from this commission,” Akume said. “All revenue-generating agencies must comply with collection and remittance laws. Leakages must be blocked, and defaulters must be sanctioned.”

This directive comes amid Nigeria’s ongoing efforts to reduce its over-reliance on crude oil revenue. Akume stressed the need for the RMAFC to enhance non-oil revenue mobilisation by focusing on solid minerals, taxation, and other sectors with untapped potential.

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For a country grappling with economic challenges, the call for a revised revenue allocation formula is long overdue. Akume reminded the commission that the current formula hasn’t been updated in over two decades; a situation he described as untenable for national development and economic stability.

“The commission must fast-track the review of the revenue allocation formula,” he urged. “A new, equitable formula is critical for national growth and stability.”

He also called for closer collaboration with key stakeholders, including the National Assembly, to harmonise revenue administration efforts and align them with the administration’s economic transformation agenda.

In his address, the RMAFC Chairman, Dr. Mohammed Shehu, pledged the commission’s commitment to fair and transparent revenue allocation among the three tiers of government.

“We are actively developing frameworks that enhance revenue generation, fiscal sustainability, and equitable distribution,” Shehu said.

The newly inaugurated commissioners echoed this commitment. Mr. Ismail Agaka, representing Kwara State, assured the SGF and the commission’s leadership of their dedication to fulfilling the RMAFC’s mandate.

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