Lack of funding stalls RMAFC review of salaries of public servants, others

The Revenue Mobilisation, Allocation and Fiscal Commission plans to review the current revenue allocation formula with N830m, while a review of the remuneration packages for political, public and judicial holders will cost N470m but the Federal Government, however, refused to approve the proposal.

This was made known in a written presentation by the RMAFC to the House of Representatives on its 2020 and 2021 budgets.

The Chairman of RMAFC, Mr Elias Mbam, had on November 4, 2020, appeared before the House Committee on Finance for 2020 budget performance appraisal and defence of 2021 budget proposal, where he decried the high cost of governance in Nigeria.

The RMAFC is proposing for 2021 a budget of N2,223,176,808, consisting personnel cost of N1,654,784,707; overhead cost of N344,762,287; and capital expenditure of N223,629,814.

The capital projects, as approved, include annual nationwide revenue-sharing data verification exercise that would cost N30m; ‘institutionising’ economic diversification at federal and state levels, N40,000,814; and monitoring reconciliation and recovery of revenue exercise, N153,629,000.

The proposed capital projects, according to Mbam’s presentation, also include a review of revenue allocation formulae at N830m; review of remuneration package for political, public and judicial holders, N470m; and advocacy and sensitisation programme, N235m.

In the presentation the RMAFC said “The commission has started the process of reviewing the existing revenue allocation formulae.

Preliminary works, including literature review, engagement with the major stakeholders and collection of relevant data, have commenced but the process has however been slowed down due to paucity of funds.

“The review of remuneration package for political, public and judicial office holders has also commenced with literature review and collation of relevant data but the exercise is being delayed due to lack of funds.”

On the cost of governance, Mbam said, “The cost of governance in Nigeria is very high and has continued to be on the increase. This is clearly unsustainable as no country can develop with such a high level of recurrent expenditure.

“Some of the reasons responsible for this include duplication of agencies of government with virtually similar functions and responsibilities, corruption, unlimited number of political appointments, wasteful spending; ghost workers’ syndrome, etc.”