In a landmark decision, Nigeria’s National Economic Council (NEC) on Thursday endorsed a proposal by the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) to seek legislative amendments to its governing Act, paving the way for alternative funding mechanisms. This includes approval for 0.05% of non-oil federation revenue to support the commission’s operations.
The decision was reached during NEC’s 147th meeting, chaired by Vice President Kashim Shettima at the Aso Rock Villa, Abuja. Anambra State Governor, Professor Charles Soludo, briefing journalists after the session, outlined the council’s deliberations on a draft bill to repeal and replace RMAFC’s existing Act, as well as its plea for enhanced funding.
“The council approved forwarding the draft bill to the National Assembly for consideration and passage into law,” Soludo said. “Additionally, the recommendation for improved funding was approved, with the commission to be funded by 0.05% of non-oil federation revenue, subject to further legislative scrutiny.”
Soludo noted that RMAFC had originally sought 0.75%, but NEC settled on a lower figure. He underscored the commission’s critical role in ensuring equitable revenue distribution across the federation, citing chronic underfunding as a key constraint.
The council also explored transformative initiatives beyond revenue reforms. Lagos State Governor, Babajide Sanwo-Olu, unveiled plans for the “Renewed Hope Creative Village” project, which reimagines historic sites as vibrant cultural and entrepreneurial hubs.
“This initiative blends heritage preservation with innovation,” Sanwo-Olu said. “It will generate jobs, enhance government revenue, and serve as an educational resource for our youth.” He added that the programme’s success depends on collaboration between federal and state governments, with adequate budgetary support required to avoid over-reliance on sub-national entities.
Vice President Shettima, reflecting on the year’s economic reforms, expressed optimism over recent progress. Citing a 3.46% GDP growth in the third quarter of 2024, Shettima described it as a harbinger of greater achievements to come.
“This growth reflects the collective efforts and sacrifices made by all stakeholders,” Shettima said. “The seeds of reform sown in 2024 are beginning to bear fruit, and as we approach the new year, we must consolidate these gains to ensure a prosperous future.”
NEC’s final meeting of the year was a confluence of critical economic assessments and forward-looking decisions, underscoring the administration’s resolve to navigate the complexities of Nigeria’s fiscal and developmental challenges.
