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The National Economic Council, on Thursday, approved the Revenue Mobilisation, Allocation and Fiscal Commission’s request to seek a National Assembly amendment to its existing Act and to provide an alternative funding source for the Commission.
This includes approval for 0.05 per cent of non-oil federation revenue as an alternative funding source for the Commission.
The decision was reached during NEC’s 147th meeting, chaired by Vice President Kashim Shettima at the Aso Rock Villa, Abuja.
The Governor of Anambra State, Charles Soludo, briefed State House correspondents after the meeting, noting that the draft repeal and replacement legislation stemmed from an earlier RMAFC presentation seeking NEC’s approval for a proposed Bill to amend its existing Act.
Soludo revealed that RMAFC had, on November 21, submitted a request for revisions or repeal of the Act of Parliament that established the Commission, proposing a new legislative framework. Additionally, RMAFC sought alternative funding mechanisms for its operations.
The report presented during the NEC meeting highlighted RMAFC’s critical responsibilities as a key institution within the federation, noting that inadequate funding has hindered its ability to execute its mandates effectively.
With endorsement from the Ministry of Justice in a letter dated August 27, 2024, RMAFC sought NEC’s approval to forward the draft Bill to the National Assembly for consideration and passage into law. It also proposed access to 0.05 per cent of non-oil federation revenue as an alternative funding source.
Following deliberations, NEC approved RMAFC’s request for improved funding and granted permission for the draft Bill to be forwarded to the National Assembly.
Soludo explained, “After deliberating, the Council noted and approved as follows: first, that RMAFC should forward the draft Bill to the National Assembly for consideration and passage into law. Second, NEC approved the recommendation for improved funding for RMAFC and allowed the Commission to access 0.05 per cent of non-oil federation revenue, based on the proposed tax reforms and subject to further scrutiny by the National Assembly.”
The Council also received a proposal from the Ministry of Arts, Culture, Tourism and Creative Economy to establish and re-adapt historic sites into creative villages under the Renewed Hope Creative Village initiative.
Governor Babajide Sanwo-Olu of Lagos State, who briefed journalists on the development, said the initiative involves repurposing historic sites into vibrant hubs for artists, entrepreneurs, and communities, while preserving their historical integrity.
“Not only will it create jobs, but it will also enhance revenue generation for both the locations and the government. It will provide educational opportunities for our teeming youth,” Sanwo-Olu stated.
He added that the ministry sought funding support from sub-national governments to execute its plans. NEC acknowledged the need for stronger synergy between the ministry and sub-nationals while urging the Federal Government to provide the ministry with an adequate budget.
Earlier, Vice President Shettima noted that the Federal Government’s economic reforms and interventions in 2024 were already yielding results.
“Difficult decisions have been taken to redirect the course of our national economy, and the results are beginning to show. The recent report of 3.46 per cent GDP growth in the third quarter of 2024 is a reassuring sign of the harvests ahead,” Shettima said.
