FM First Edition-Fiscal Monitor

Revenue Mobilization Allocation and Fiscal Commission
HEADQUARTER
Plot 210, Tafawa Balawa Way, Central Area Garki Abuja. Email: info@rmafc.gov.ng
Telephone: 09 234 8914, 234 8922
In order to effectively perform its functions, the Commission has operational zonal offices that take charge of field
operations and enhance co-ordination and contacts with States and Local Governments. Some of the zonal offices
were approved and established by the present board members. The operational Zonal Offices are listed below:
S/N
ZONAL /
STATE
OFFICE
STATES
COVERED
ADDRESS
Kano
Katsina
Kano
Jigawa
Kastina
7thFloor, Room 744 Fed. Sec.,

Kano
10, Nagogo Road, Kastina.
Gusau
Zamfara
Sokoto
Kebbi
HEAD OF
OPERATION
PERSONNEL
OFFICER
Taminu A. Aliyu
08033292325
Kabiru Ibrahim
08063734043
Ahmed I. Bichi
08033492127
Ibrahim Hanafi
08036003855
Old Legacy House Zaria Road,

Gusau.
Bilya M. Saharada
08064991221
Audu Idi
08033115655
Hussani S. Ibrahim
08036030611
Ghali Gambo
Kibiya
08034865082
Basher A. Gummi
08034249632
Sokoto
1st Floor, Fed. Sec., Kano Road,

Sokoto.
Ibrahim Ali
08033143289
Zaiyanu Zailani
08033249632
Kebbi
Emir Haruna Rasheed Road, Old

PDP Office, Birni Kebbi
Bala M.Malami
07039206692
Kaduna
Kaduna
Niger
Maiduguri
Borno
Damaturu
Yobe
No.5 Yakubu Gowon Way, Off

Ahmadu Bello Way, By Former
Fed. Pay Office, Kaduna.
3rd Floor, Room 3041, Fed. Sec.,
Kano Road, Maiduguri
Fed. Sec. Complex, 3rd Floor, Rm
L301-L304 Damaturu
Abdulkadir S.
Sankara
07036104414
Abdul Baba Muhd
08036467879
Ibrahim M. Fika
08034334423
Namadina
Ahmed
08036205290
Tukur Bako
KoKo
08035464108
Ayuba M.
Damter
08033975598
Isiaku Mikailu
08039356205
Ali Ahmad
08067246800
Yola
Gombe
1st Floor, Room 179, Fed.

Secretariat, Yola
No.114, Shongo Estate, Gombe
Gombe State
Attahiru I. Gabdo
08032861401
Bukur A.Gajibo
08065345747
Victor Garba
08035925944
Umar Ahmed
08054445990
Zainab Sulaiman B.
08037610641
10
Taraba
Adamawa
Gombe
11
Bauchi
Bauchi
Salihu Ibrahim
08065683722
Jos
13
Makurdi
Plateau
Nasarawa
Benue
Kogi
Aminun
K.Umar
08035695270
Sunday Damler
08055119821
Ayima V. Adu
08072561191
Hauwa Muhd
08056037623
12
14
Ilorin
Kwara
Ibadan
Oyo
Abdulrahman
Subair
08032509326
Omajola Anthony
08067034747
Adebayo
Fadumila
08037149057
Abakun Z
Blessing
08068643800
Danladi Idris
Mohammed
08035868755
-
Abiodun Abayomi
08035047337
15
Nuru Jibril Housing Estate

Gombe Road, Bauchi, Bauchi
State
8thFloor, Fed. Govt. Sec., Jos,
Plateau State.
Old Otukpo Road, Benue State
Civil Service Commission,
Makurdi, Benue State
Former ADC Building, Jaba Road,
Ilorin,
Kwara State.
House No.2, Road 203, Adjacent
Ise-Oluwa Nur. & Prim. Sch.
Agodi GRA Ibadan, Oyo State.
16
Lagos
Lagos
Ogun
5th Floor, (Glass House), Fed.

Ministry of Works
Building, Tafawa Balewa
Square, Lagos State
Udu S. Babatunde
08034741247
Fagbemi A. A.
(Mrs)
08026860224
Lami Zarto(Mrs)
08023040773
Akinrolabu
Folawiyo Mrs
08023464815
17
Akure
Ondo
Olaoye A. Ayodeji
08036177320
Ajayi Michael
081856377066
Ekiti
Ekiti
Daramola S.
Gbaya
09033559156
Ebenezer I.
Jaiye
07031 838383
18
Balogun Clement
08036867938
19
Osun
Osun
Opp.ADP Alagbaka Obafemi

Awolowo Avenue, Akure, Ondo
State.
Ekiti State Housing Estate, Afad
Road, Block F, Units 7 & 8, AdoEkiti,Ekiti State.
Moshodun Building, Alekuwodo
Area, Oshogbo, Osun State
Mrs. Akintola
Bukola O.
20
Calabar
Cross River
21
22
Port
Harcourt
Enugu
23
Benin
Rivers
Bayelsa
Enugu
Ebonyi
Anambra
Edo
Delta
Comfort
Olagbamino
08033118585
Victor Ugwu
Monday
08035560534
Mrs. Abu Ngozi E.
07031645609
Igweshi Eric
08037456402
24
Umuahia
Abia
25
Owerri
Imo
26
Uyo
Akwa Ibom
45,Murtala Muhammed Highway

Calabar,
Cross River State
No. 6, Aggrey Road, Port Harcourt,
Rivers State.
3rd Floor, Room 346C, Fed.
Secretariat, Enugu, Enugu State.
Fed. Secretariat, Block D,3rdFloor,
Benin-Auchi Road, Edo State
No.50 Enugu/Warri Road,
Umuahia, Abia State
Right Way, Road 2, Block 6,Orlu
Road Secretariat, Owerri, Imo
State.
1,Fulga Street, Off Ikot Ekpene
Road, Uyo, Akwa Ibom State
OFFICER
John Anda
08033139502
Andy Yatso Yorom
0708191967 3
Akin O. Sodeinde
08023528886
Oyeniyi Kamaru
Niyi
08037070536
Eteng O. Eyong
08035710010
Sunday Faaol
08033103728
Okafor Elizabeth
(Mrs)
08033256523
Felix Edo
08037172111
Ifeka V.Emeka
08037243310
Brund A. kazibi
08033319107
Damni Walanye
08025843407
Albert
Okpalaofe
07031576440
Kentebe B.K.
08066113354
Ezenagu
Ijeoma C.
08035605687
Nwakete Paul
N.
08034047386
Oba Amba
08038880506
Mrs. Linda
Anyau
08034502086
Koffi Ime
Akpan
080234061121
Bello A. Nok
08062615900
Ezekiel Jiya M.
08054074546
Saidu Mai Gasma

08065426907
Mahmud Gidado
08153768366
Isiaku Audu
08034262607
Suleiman Labaran
Almu
0806121 8135
Muhd O. Gunduma
08091262926
Umar B. Ahmed
08054445990
Patrick Peter Etong

08062626470
Okete Ijeoma
08073099408
Adiriica Ijeoma
(Mrs)
08035706596
Oigiangbe
Gbanashi
08032284541
Emerue Cecelia
08037581998
Mrs. Priscilia Puru
08066934570
Otongamah Okon
08084728949
Vol. 1, No. 1, January 2013
Aminu I. Indabawa
08061299302
Bashir M. Saulawa
08065675058
Salmanu Gidado J.
08036781933
Haruna Umar
08033355053
Geraldine Oboto
08036133357
A quarterly publication of the Revenue Mobilization Allocation and Fiscal Commission
ACCOUNTS
OFFICER
Abdurahaman
Usman
08133413549
Abdulahi Rumu
Mohammed
08036583758
Nuhu Muazu
08037020070
FISCAL MONITOR
Zakari Dio
Mohammed
08035976257
Mary Garba
08055785534
Bello Yahaya
07037231827
Ojo Oluwole
08035959397
Amogbon Marcus
08181124103
Maduike Cyprian
08037404817
Mr. Don Umenne
08056253019
Kpoobari Tamana
08135334 166
The imperatives of Economic Diversification

Transforming Tourism for
Economic Diversification
Diversification: Solid Minerals

Development
Diversification: Farming
Our Future
Fiscal Efficiency For Enhanced

Internally Generated Revenue
From theEditor
Editorial Board
Publisher
Engr. Elias Mbam, FNSE
Editor at Large
K.T. Kasali
Editor
Ibrahim Mohammed
Production Editor
Bashir Bichi
Managing Editor
Mercy Ozele
Associate Editor
Hauwa D. Mohammed
Correspondents
North West: Kabir Ibrahim
North Central: Sunday Damla
North East: Ibrahim M. Fika
South East: Okafor E. Nnenna
South South: Nwakete N. Paul
South West: Ebenezer Jaiye
Photographer
Gabriel David
Staff Writer
Abubakar Jimoh/Gabriel David
Research Team
Sanya Adejokun
Hussein S. Kagara
Umar S. Kulo
ENLARGING
THE NATIONAL
Editor-in-Chief
Amb. Zubairu Dada
he coming of the Fiscal

Monitor heralds the birth of
t h e R M A FC ' s I n - H o u s e
Magazine that is tailored
towards providing useful
insights into the operations,
programmes and activities of the Commission. It is my strong belief
that the birth of this special publication will go a long way in fostering
harmonious relationship, understanding and mutual goodwill
between the Commission and its diverse publics comprising
Revenue Generating Agencies and the Executive, the Legislature and
the Judiciary at the three tiers of Government amongst others.
CAKE:
The Imperatives of Economic Diversification
By Ibrahim Mohammed
Abubakar Jimoh
Gabriel David
The Commission under the leadership of its chairman, Engr. Elias

Mbam, FNSE strives to build a positive corporate culture that will
restore public confidence in fiscal governance and organizational
leadership through effective engagement with critical stakeholders at
the three tiers of Government.
n fulfilment of his promise to

enlarge the National Cake when
he assumed office in December
2010 as Chairman of Revenue
Mobilisation Allocation and
Fiscal Commission, Engr. Elias Mbam
has been in the forefront of galvanizing
efforts to sensitize critical stakeholders to
appreciate the imperatives of economic
d i v e r s i f i c at i o n fo r s u st a i n a b l e
development.
It is instructive to note that with the consolidation of democratic

governance and the rise of internet activism in the country, it has
become imperative for Governments at all levels to make bold and
courageous efforts to guarantee the free flow of information between
government and the governed to ensure participatory governance
and sustainable development.
In this maiden edition, highlights of the Commission's mandate,
programmes and activities have been amply provided in form of
interviews, features and news analysis to cater for the needs of its
targeted audience cutting across a broad spectrum of the society.
Circulation
Isiaka Mohammed
Prince Hezekiah
You are welcome on board.
Editorial Consultants
Image Merchants Promotion
Ibrahim Mohammed
Editor
Contents
ENLARGING THE NATIONAL CAKE: The Imperatives of Economic Diversification
Diversification: Farming Our Future
Fiscal Efficiency For Enhanced Internally Generated Revenue
Reviving The Manufacturing Sector
Diversification: Solid Minerals Development
Transforming Tourism for Economic Diversification
Mbam's RMAFC: Forging Acceptable Fiscal Federalism
ICTs: Technology you must be involved
Towards Equitable Revenue Sharing Formula: The Journey so Far
RMAFC As Fiscal Arbiter
Bailing States from Looming Bankruptcy
Boosting The Revenue Base
Developing Natural Resources Through Regional Cooperation
Use TFT to Fund Free Education, RMAFC Urges Governments
Mbam Honoured As RMAFC Pillar of Sports
Stress Management
Boost Your Brain Power!
RMAFC, a permanent fixture in our national life
Access To Information is A Fundamental Right
Mbam Will Fulfil his Promises
Fiscal Monitor / Vol. 1, No. 1, January - March 2013 / Page 3
4
7
8
9
11
13
16
18
19
24
28
30
31
32
32
33
34
35
37
39
It would be recalled that in his maiden

address at a Management Retreat in Uyo,
Akwa Ibom State, the Chairman harped
on the urgent need for Nigeria to move
away from a monolithic economy,
heavily dependent on oil revenues to a
diversified economy that can guarantee
the country's future. He added that
dependence on oil revenue is not
sustainable in the long-run as price
fluctuations in the international oil
market and the exhaustible nature of
hydro carbon resources can easily alter
the fortune of an oil-producing nation.
To this end, the Commission, in
conjunction with the three tiers of
government and the private sector have
been promoting advocacy and mass
mobilisation campaigns to sensitise the
general public on the need for economic
diversification. It is pertinent to note that
the Commission is getting involved in
this project because of its mandate under
paragraph 32(C) part 1 of the Third
Schedule of the 1999 Constitution of the
Federal Republic of Nigeria to advise
Federal and State Governments on fiscal
efficiency and methods by which their
revenues can be increased.
Good news is that the efforts are already
beginning to bear fruits as some states
like Bauchi, Bayelsa, Nasarawa and Taraba
have forwarded a blue print to the
Commission for the development of

agriculture, tourism and solid minerals
in their domain. The South-South and
South -West states are also beginning to
key in into the vision by promoting
regional economic corporation in areas
where they have comparative advantage.
The RMAFC boss has also harped on the
need for Federal, States and Local
Governments to take advantage of the
Natural Resources Fund and other
funding windows to develop agriculture
and solid minerals especially the value
c h a i n to c re ate e m p l oy m e n t
opportunities, wealth and improve the
socio-economic conditions of the
populace.
It would be recalled that prior to the
discovery of oil in the fifties, Nigeria's
economy relied heavily on revenue from
non-oil sectors notably agriculture and
the solid minerals.
Going down memory lane for instance,
the Minister of Agriculture and Rural
Development, Dr. Adewumi Adesina
recently recalled with nostalgia, the
glorious period when Nigeria accounted
for 60 percent of the global supply of
palm oil, 30 percent of groundnut oil
and 15 percent of global supply of cocoa.
He however, expressed regret that the
country has now become a consumer
nation with a total food import bill rising
to N98 trillion naira or $628 billion
between 2007 and 2010.
It is significant to note that all the
developmental strides recorded by the
defunct Regional Governments were
achieved through the quantum funds
that accrued from massive exploitation
of natural resources. Dr. Adesina also
ac k n ow l e d g e d t h e i m m e n s e
contributions made by agriculture to
infrastructure and human capital

development like construction of roads,
railways, sea ports and airports and
u n i v e r s i t i e s t h r o u g h e f fe c t i v e
implementation of regional and national
development plans.
These important legacies include the
Cocoa House, Ibadan; Ahmadu Bello
University, Zaria; University of Nigeria,
Nsukka; Obafemi Awolowo University;
Ile Ife; University of Ibadan; Hotel
Presidential Enugu and Port-Harcourt;
Michael Okpara Square; New Nigerian
Newspapers, Kaduna etc.
It is regrettable that Agriculture, which
used to be the country's economic
mainstay, has been allowed to
degenerate. Decrying the current
abysmal status of the sector, Adesina
lamented that in 2010 alone, Nigeria
spent N635 billion on importation of
wheat, N356 billion on rice, which
translated to an average of N1 billion per
day, N217 billion on sugar and despite
abundant marine resources, rivers, lakes
and creeks across the country, the
country spends a whopping sum of N97
billion annually on fish imports.
However, all hope is not lost as there is a
silver lining in the horizon heralding the
rapid transformation of the moribund
sector to restore it to its past glory.
Governor of the Central Bank (CBN)
Malam Sanusi Lamido Sanusi, disclosed
that the apex bank has entered into
partnership with the Federal Ministry of
Agriculture and Rural Development to
grow agriculture from its current
subsistence level to a full blown
commercial enterprise through the
establishment of Nigeria Investment and
Risk Sharing Agricultural Lending
(NIRSAL) initiative to strengthen the
agricultural value chain.
conjunction with the Federal

Capital Territory Administration
create a formidable agro-industrial
complex to provide food supplies
to the surging population in the
FCT.
The CBN Governor had at a forum

on reviving agriculture stressed that,
with value addition, post-harvest
losses can be reduced to the barest
minimum, farmers can earn more
income from their endeavour and
food security can be better
enhanced as it removes the effect of
seasonality in the food supply chain
and promote export.
He adds that it also promotes
industrialisation, the growth of
agro-allied and agro-based industries and
reduces the perception of risk
particularly from the financiers as it gives
them the freedom to choose which
aspects of the chain they would want to
finance and develop appropriate risk
sharing and mitigation mechanism in
partnership with government.
Lending his weight behind the new
initiative also, the Director General,
International Institute of Tropical
Agriculture (IITA), Dr. Peter Hartmann is
optimistic that the Federal Government's
focus on agriculture will bring about
good governance, infrastructure and
human development.
Everyone can find their place in job
creation- the youths, financiers, farmers,
traders, food processors, educators,
advertisers, transporters and all
consumers many of whom spend a large
amount of their income on food.
An effective way of engaging the private
sector in agricultural development is
through public-private partnerships. The
three tiers of government can create the
right policy environment to allow
agribusiness and agro-allied industries to
develop and flourish. If the public sector
provides support for rural infrastructure
for example, or for technical advisory
and other extension services, this makes
the sector a less risky investment choice
for the private sector and therefore a
m u c h m o re att ract i ve b u s i n e s s
opportunity.
It is a well-known fact that agriculture
and rural development hold the key to
rapid national economic growth. Gross
Domestic Product (GDP) growth
generated by agriculture has been shown
to be at least twice as effective in reducing
poverty as growth in other sectors.
For example, agriculture spanning crop
production, fishing, livestock, forestry
and pasture
has driven economic
growth through the centuries, from 18th
century England, to 19th century Japan,
to 20th century India, to Brazil, China
and Vietnam today.
Cyril Nwanze, the Director General of
International Fund for Agricultural
Development (IFAD) stressed that
promoting rural agribusinesses can drive
economic growth; provide a career
opportunity for Nigeria's youth and
create a pathway out of poverty for the
14.5 million Nigerian farmers. Without
business opportunities in rural areas,
young people will be driven to the cities
in search of work.
States and Local Governments also have a
greater role to play in view of their
closeness to the grassroots by creating an
environment conducive to a full blown
commercial agriculture.
For instance, contiguous states in the
South-West with comparative advantage
in cocoa production could carve out an
area and build export processing
corridor provided with electricity, access
roads, potable water, security, tax
incentives and the railways linking
warehouses to the ports.
The North-West, famous for the
groundnut pyramid and cotton
production could do same with Kano
being a commercial and industrial hub
serving as the corridor. The North-East
p a r t i c u l a r l y t h e Yo b e / B o r n o /
Adamawa/Taraba axis, which share
c o m m o n b o u n d a r y w i t h C h ad ,
Cameroun and Niger Republics could
also play a catalytic role in reviving the
economy in the sub-region using the
Southern Chad Basin famous for rice and
livestock production and fisheries from
the water resources of the Lake Chad.
The North-Central popularly dubbed
the Food Basket of the nation could in
The South-East and South-South,

which control the eastern and
southern corridors, can exploit
their comparative advantage in
plantain/banana production,
cassava, cashew nut, oil palm
production and rice to create a
m as s i ve ag r i c u l t u ra l ex p o rt
corridor like Malaysia to produce and
process cash and food crops for both
export and local consumption.
It is heartening to note that already
Nigeria has abundant irrigation
infrastructure consisting of hundreds of
thousands of irrigable land equipped
with water canals under the control and
management of twelve River Basin
D eve l o p m e n t A u t h o r i t i e s w i t h
catchment areas spread across the length
and breadth of the country.
What remains is for the relevant
Ministries, Departments and Agencies at
the three tiers of Government, the
Agricultural Research Institutes, agroallied industries, banks, financial and
insurance institutions as well as farmers'
c o o p e rat i ve s to fo rg e c l o s e r
collaboration with a view to maximizing
Nigeria's agricultural potential to the
fullest.
The revival of the moribund railways and
the inland water ways will further
facilitate mass movement of people and
goods especially farm produce from the
rural areas to the markets.
The Solid Minerals Sector it might also
be recalled, had immensely contributed
to the national purse with Enugu and Jos
attracting hundreds of thousands of
artisanal miners and allied businesses,
providing job opportunities, income and
creating wealth.
In order to harness the abundant natural
resources and develop the manpower for
its rapid exploitation, successive
ad m i n i st rat i o n s i n t h e c o u n t r y
established several steel rolling mills,
iron ore and aluminium smelter
companies in parts of the country. These
now moribund industries include the
Osogbo Steel Rolling Mills, Katsina, Jos
rolling mills, Aluminium Smelter
Company, Ikot Ikpene etc.
However, with the discovery of oil in

commercial quantity and unfortunate
abandonment of the hitherto viable and
steady non-oil sector, the Nigerian
economy soon became afflicted by the
notorious Dutch Disease, which made
oil resource a curse rather than a blessing
for the nation.
Recent concerted efforts have the
potential of reversing the trend and
relegate the oil and gas industry to less
prominence in the nearest future to the
mining sector. The Federal Government
recently unveiled plans to diversify the
nation's economic base from complete
reliance on oil and gas to the solid
mineral sector.
Accountant-General of the Federation

recently revealed that total revenue
remittances from solid minerals
currently stands at N1.7bn. Already
RMAFC has sent an advisory note to the
Office of the Accountant General of the
Federation to effect the disbursement of
13 percent Derivation where Kogi state is
to be the biggest beneficiary having
contributed over 200 million Naira into
the Federation Account.
The tourism sector has also been
identified by industry experts as a viable
alternative to oil as a source of revenue.
Nigeria is a fascinating topography,
magnificently blessed by nature with a
Speaking on the new trend, Minister

of Mines and Steel Development.
Arc. Mohammed Musa Sada says by
its nature, the mining industry has
the capacity for both backward and
forward value chains that can
sustain wealth creation,
employment generation, poverty
reduction, rural development and
production of feedstock for local
industries. He stated that Nigeria
now has about 38 different foreign
companies that are holding about
421 exploration licences.
Confirming the total transformation of
the solid minerals sector by the Federal
Government, President Goodluck
Jonathan affirmed that,We increased
the number of investors in the mining
sector due to the transparent manner in
which titles are now issued on a first
come first served and use it or lose it
bases." A total of 2,476 active mineral
titles were issued compared to 666 titles
issued out in the previous year, thereby
reducing, significantly, illegal mining
activities. About 350,000 additional
jobs were created, arising from the
activities of newly registered operators.
We have initiated a programme to
support private steel production outfits.
This has resulted in an increase in
production figures for steel and other
metals to cover 1 million tons.
Perhaps because of the resounding
success recorded by the Commission's
continued advocacy and stakeholder
sensitisation on economic
diversification, state governments,
particularly those from the non-oil
producing areas are beginning to key in
into the initiative. Office of the
total landmass of 923,000 square

kilometres stretching from the Atlantic
Coast and the rain forest in the South
through the Savannah to the semi-arid
region in the North. The diverse
ecosystem, manifesting in varying
climactic zones, network of rivers, lakes,
beautiful beaches, awesome caves, warm
and cold springs and waterfalls all add to
the beauty, glamour and the ecological
v e r d a n c y of N i g e r i a ' s n at u r a l
environment.
With over 350 ethnic groups, Nigeria is
the most plural and most culturally
diverse nation in Africa. The richness of
her history, culture and diversity of her
people readily make the country a
potential tourist destination of choice in
Africa. The nation currently earns
approximately N80 billion annually
through tourism.
According to Director General of Nigeria
Tourism Development Corporation
(NTDC) Otunba Olusegun Runsewe
Nigeria has all it takes to become a
leading tourism destination in the world
by virtue of its natural endowment and
the institutional framework already on
ground with improved infrastructure,

necessary incentives and strong synergy
between the public and private sector,
Nigeria would attain the enviable status
as a preferred tourist destination in
Africa.
The Director General extensively
highlighted other areas of tourism
potentials like ecotourism. These include
wildlife zones that have been designated
and protected as national parks, game
reserves and sanctuaries.
The NTDC boss also commended
RMAFC's recognition of tourism as a
viable alternative in the quest towards
diversification and its capacity to
stimulate economic growth, create
wealth and generate employment.
Suggesting the way forward, he
enthused, we have the necessary
natural resources and the requisite
institutional framework to reposition
tourism in Nigeria as a viable
compliment to our oil resources.
The tourism Csar who believes that
tourism is private-sector driven,
added that the primary role of
government in tourism is to provide
the enabling environment for the
sector to develop. Runsewe said the
Federal Ministry of Tourism Culture
and National Orientation, Nigeria
Tourism Development Corporation,
National Institute for Hospitality and
Tourism, state ministries of tourism, state
tourism boards amongst others have all
been promoting tourism development
in the country.
In order to reduce over-dependence on
oil revenue and restore Nigeria to its past
glory, Ambassador Zubairu Dada,
Chairman Public Affairs and
Communication Committee of RMAFC
said, it is imperative for all hands to be
on deck so that every part of the
federation can enjoy the full benefits of
its God-given resources. The
Commission is not resting on its oars in
seeing to the realisation of the objective
of diversification programme as it has
always reiterated.
With the revival of the agricultural, solid
minerals and tourism sectors, it is
expected that the teeming unemployed
youths comprising college graduates and
school leavers and drop outs will find a
place of preoccupation as financiers,
artisans, food processors, educators,
advertisers, farmers, traders, transporters,
miners, tour operators etc.
Diversification: Farming Our Future

By Gabriel David
t independence in 1960,
available records shows Nigeria
was on the same level of
economic development with
the Asian Tigers (South Korea,
Taiwan, Malaysia etc.). The
main driver of the Nigerian economy
then was agriculture, which accounted
for over 70 percent of its national
income.
In relative terms, the country was said to
be doing well then, the poverty index
was nowhere close to Nigeria's present
predicament. In fact, there was global
expectation that the country would soon
emerge as the first African superpower.
According to Dr. Casimir Anyanwu, who
heads the Economic Diversification
Committee of the Revenue Mobilization
Allocation and Fiscal Commission, in a
paper titled The Imperatives of Creating
New Revenue Sources for Nigeria
delivered at a retreat in Uyo, Akwa Ibom
State recently, the Asian tigers, who were
on equal footing with Nigeria three
decades ago have either graduated to
advanced economies or have certainly
left the Third World status where Nigeria
continue to find itself.
Anyanwu identified oil as the bane of the
country's economy and that this natural
resource, which could have been an
advantage or blessing, has become
Nigeria's albatross. He noted that other
oil producing nations have not only
turned the black gold into an end in itself
but have also employed the resources
from it to develop other sectors in a way
that would guarantee their economic
stability as well as providing secured
future for posterity.
financial obligations owing to the delay

in the disbursement of the monthly
allocation from the Federation Account.
Again, with the projection that at current
rate, Nigeria's population will double in
less than twenty years and that oil will be
completely depleted in another 30years,
the country has no other choice than to
diversify its economic base to prepare
well ahead for the challenges that lie
ahead.
This growing concern informed the
decision of RMAFC to intensify efforts
a i m e d at p ro m ot i n g e c o n o m i c
diversification to move the nation's
revenue base away from oil.
Available records indicate that 82 million
hectares out of Nigeria's total land area of
about 91 million hectares is arable.
However, only about 20 million hectares
of land is currently cultivated. While 18
million hectares of this land is classified
as permanent pasture, much of it has the
potential to support crops. About 20
million ha is covered by forests and
woodlands. Most of this marginal land
also has agricultural potentials.
To harness these great agricultural
p ote n t i a l s i n t h e c o u n t r y, t h e
Administration of late President Umaru
Yar Adua included Food Security and
Agriculture in its Seven-Point Agenda
showing its desire to build a vibrant
agriculture-based economy with the
launching of its National Food Security
Programme in September 2008, to tackle
food crisis and to ensure sustainable
access to quality food in Nigeria.
In pursuit of this objective, the Federal
Government budgeted N200 billion as
take-off grant. Toeing the line of his
predecessor, President Goodluck
Jonathan on resumption of office
constituted a National Economic
Management Team (NEMT). The team
had since unveiled an Agricultural
Transformation Action Plan (ATAP)
aimed at revolutionising the agricultural
sector in the next four years.
He emphasised that although Nigeria is

rated as one of the most endowed
nations in the world (in terms of both
human and natural resources) capable of
sustaining and driving the highest level of
socio-economic activities and industrial
development, it remains today as one of
the most striking reminder of a monoproduct economy solely dependent on
hydrocarbon which evidently is
exhaustible and non-renewable. He
added that this model does not only
encourage laziness but is responsible for
Nigeria's low productivity. He described
the one product economy as a sure way
to guarantee the economic death of the
nation.
The action plan according to the Minister

of Agriculture and Rural Development,
Akinwumi Adesina is to treat agriculture
not as a development programme as has
been the case in the past but purely as
business with emphasis on public
private partnership, investment and
accountability.
Nigeria appears to have experienced a

devastating effect of a mono economy
early last year with most State
Governments unable to discharge their
He declared that through the ATAP,

Government aims to diversify the
agricultural sector in the areas where the
country has comparative advantages.
Adesina listed such advantageous areas as

rice, cassava, sorghum, cocoa and cotton
production while promising to focus
attention on these areas to ensure food
security for the nation. He equally noted
that the agricultural transformation
programme would enable Nigeria to be
food-secured by increasing production
of key food staples by 20 million metric
tons.
The Minister also disclosed that rice and
cassava production would rise to 2
million and 17 million metric tons
respectively and sorghum by 1 million
tonnes. He added that when fully
operational, the sector would create over
3.3 million jobs, over N300 billion
($2billion) in additional income in the
hands of Nigerian farmers, over
N350billion ($2.2billion) injected into
the economy from rice self-sufficiency
and over N60billion ($380million)
injected into the economy from
substituting 20% of bread flour with
cassava.
Fiscal Efficiency For

Enhanced Internally
Generated Revenue
By Abubakar Jimoh
he on-going global financial

c r i s i s h a s wo r s e n e d
economic environments.
This has a significant
negative consequence on
the economic activities of sub-national
Governments as the economy witnesses
not only drastic fall in standard of living,
but also amplifying the poverty level
since most State Governments have been
financially incapacitated to discharge
their mandates.
The consequence is the agitations by
State Governments for the review of the
It is believed that the agricultural sector

would have been the livewire of national
economy but was neglected and has
resulted in national embarrassments
with rising unemployment among
graduates and the attendant youth
restiveness.
Nigeria therefore cannot afford to
continue suffering in the midst of plenty
with its abundant resources and fertile
land. It is regrettable, that the country is
still being classified among the poorest
nations of the world. It is therefore
interesting, seeing Government waking
up from its decades-long slumber to
address issues in the agriculture and
other non-oil sectors of the economy.
I t i s wo r r i s o m e t h at n o S t ate
Government, except probably those of
Lagos and Kano States can depend on
their IGR as they all heavily rely on the
monthly allocation from the Federation
Account for survival. Just as we always
emulate the developed economies in
almost every sphere of our national life, it
would have been logical for the State
Governments to study and adapt
revenue generation strategies of
such economies to raise their
revenue profile.
Meanwhile, in the United States,
States are known to receive little
percentage from the Federation
Account and thus depend majorly
on IGR in financing both annual
capital and recurrent expenditures.
Consequently citizens and
companies have taken regular
payment of tax as an obligation. Tax
evasion is regarded as serious
infraction that attracts sanction and
even terms of imprisonment no
matter the position of the
personality involved.
Other notable agricultural experts have

also expressed optimism on the
possibility of transforming the economy
to agriculture-based economy in the
nearest future.
Dr. Peter Hartmann, Director General,
International Institute of Tropical
Agriculture (IITA) said the Federal
Government's focus on agriculture will
ensure good governance, infrastructure
and human development. He also noted
that with the calibre of people currently
running the critical sectors of the
economy, agriculture appears to be
getting the attention it merits.
internally generated revenue. This in turn

has generated a lot of heated debates,
controversies and unexpected protests
from both individuals and local
industries.
current Revenue Allocation Formula in

favour of States and Local Governments
purposely to meet their financial
obligations. Chairman of the Revenue
Mobilisation Allocation and Fiscal
Commission (RMAFC), Engr. Elias
Mbam has however, moderated the
agitations by urging the States to look
inwards and strengthen their internally
generated revenue (IGR) mechanisms as
a way of augmenting the monthly
allocation from the Federation Account
and enlarging the national cake.
Heeding the advice, States have begun to
explore various strategies including
imposing multiple taxes on the masses
and private entities to augment the
It is very vital to note that effective

and sustainable fiscal administration can
only be realised through improved
billing and collection procedure,
exemption policies with particular
attention to the removal of subsidy that
currently benefit more affluent
households, progressively higher
charges for relative expenses, effective
revenue rising policies, equal resource
allocation to the peoples in the States
and Local Governments; restoration of
f i s c a l d i s c i p l i n e , h o n e st y a n d
accountability in collection of tax and
other duties; workable technical capacity
in revenue generation; sufficient legal
framework for tax regime and most
especially creating an enabling
environment for investment by the

private sector.
In Nigerian states, the user charges are
mostly exceeding the cost of providing
the service; the situation which has so far
resulted not only to deficit in the States'
annual financial estimations, but
backpedalling their growth and
development. The user charges must
equate or fall below the marginal cost of
providing public services such as
healthcare, education, housing, water
supply, road, rural electrification and
transportation.
Subsidy must be eliminated from most
social sector projects in the States if
durable fiscal efficiency is to be achieved
since subsidy would mark another era
for shortage and unnecessary diversion
of funds needed to transform the States
positively. It would be a welcome
development, if State Governments
avoid free charges on some states'
services. Imposing a regime of free or low
levy on services such as education and
healthcare will only lead to inadequate
and poor delivery of facilities.
It would be advantageous for each State
to identify its potentials and take
comparative advantage over them. For
instance, State Governments in riverine
areas can diversify to fish farming using
modern fishing techniques such as
vessels, fishing gear, sonar, sounding
equipment, satellites and remote sensing
t e c h n o l o g y. T h e s e h a v e b e e n
successfully used in Australia to increase
the efficiency of fishing. To achieve this,
individuals must be adequately educated
on the use of the new technology
through workshops and seminars.
Many State Governments have blamed
the low IGR in their States on the fact that
most of the headquarters of the

industries are located in commercial
centres like Lagos, Kano and PortHarcourt. This should be the propelling
reason for each state to put enabling
environment in place to attract
investment and boost commercial
activities like that of Lagos state.
customary and burial ground permit

fees, signboard and advertisement
permit fees, among other vital sources of
revenue generation. Some Area Councils
in the country have procured speedboats
and vehicles as internal means of
transportation which are good sources of
revenue.
Besides, in farming communities Local

Governments could establish cassava,
yam, cocoa yam, potato, banana farms
including plantain plantations. The
commercial cultivation of these crops
wo u l d n ot o n l y e n h a n c e fo o d
production but also turn out to be a
genuine source of revenue generation.
The principal idea behind IGR is to

collect the proper amount of tax
revenues in a manner that guarantees the
highest degree of public confidence in
State Governments' integrity, efficiency
and fairness.
Governments could also place more

emphasis on other sources of IGR such as
markets taxes, public conveniences,
shops and kiosks rates, death and birth
registration, naming of streets, levies,
wheelbarrow and cart fees, canoe fees,
sewage and refuse disposal fees,
To achieve this, they must first encourage

and achieve the highest possible degree
of voluntary compliance with the
provision of tax laws and regulations.
They must learn to explore and comply
with statutory provisions for tax and
Personal Income Tax Act (PITA), of 1993
among others.
There is an urgent need also to put in

place effective and credible tax
administration such as State Board of
Internal Revenue Service (SBIRS) for
timely and regular revenue collection;
and the Board must solicit individual and
corporate support toward tax collection.
This can also be achieved by exploring
realistic reinforcement scheme such as
the remittance of 10 percent for
compliance and timely payments
should be made available for both
individual and corporate organisations.
Giving adequate incentive scheme for
compliance and timely payment will not
only help the State Internal Revenue
Board to reduce the expenses which it
would have incurred in revenue
collection, but also will energise both
individuals and corporate entities
towards prompt and voluntarily
payment.
Diversification:
Solid Minerals Development
efore the discovery of oil in

Nigeria, agriculture and solid
minerals were the key areas
that the country relied upon
fo r r e v e n u e . O i l w a s
d i s c o v e r e d i n 19 5 6 a n d t h e
commencement of exploration was in
1958. It is disheartening to note that since
the day oil was exploited in commercial
quantity, the commodity has done more
harm than good because it led to the
neglect of other critical sectors of the
Nigerian economy which hitherto held
S/No
1
Mineral
Barites
Bentonite
Columbite
Reviving The Manufacturing Sector
Cassiterite
5Coal
By: Abubakar Jimoh
6
7
8
Dolomite
Marble
Gold
Gypsum
10
11
Iron Ore
Gemstone
12
Kaolin
13
Lead/Zinc
14
15
Tantalite
Limestone
16
17
Talc
Granite
18
Salt
Abubakar Jimoh
Abujimoh01@yahoo.com
igeria as a giant of
Africa continent
has for long been
regarded as a nation
blessed with abundant
human and material
resources. However,
underutilisation of these
potentials has intensified
widespread poverty and poor
standard of living with rising
rate of unemployment in the
country.
Basic indicators have placed

Nigeria within the 20 poorest Minister of Trade
countries of the world. The
issue of poverty can be easily
traced to underutilization of endowed resources especially in
manufacturing sector, which could have opened up
opportunities in job creation and economic development.
It has been argued that the fastest way by which a nation can
achieve sustainable growth and development is neither by the
level of its human and material resources, but through
technological innovation and industrial capacity.
For instance, despite its poor natural resources and the hurdles
it faced from 1920s chronic inflation, Germany has effectively
exploited the manufacturing sector and rose to become the
largest economy in Europe and the fourth largest in the world.
In the modern world, manufacturing is regarded as a basis
through which a nation's

economic efficiency is
d ete r m i n e d , m e a s u re d ,
compared, classified and
ranked. However, after the
discovery of commercial
crude oil in Nigeria in the late
1950s, the nation has shifted
from its developing industrial
production base and diverted
to reliance on crude oil
production and export. Not
only has this jeopardised its
economic activities, it also
a m p l i f i e d t h e l eve l of
unemployment.
Nevertheless, well-known developed economies have over the
years, adopted some initial tactical and favourable measures in
pursuit of their economic growth and development through
massive diversification of economic resources into
manufacturing to enhance their gross domestic product (GDP)
capacity.
These measures have paved way not only for creation of
massive employment opportunities but also enhanced
standard of living at individual levels which a developing
country like Nigeria can exploit to attain a balanced economic
growth and development.
Creating an enabling environment is the only way that Nigeria
can attract and sustain local and foreign investments for
industrial and commercial activities. Enabling environment
By Bashir I. Bichi
sway.
Organized mining began in the
Northern Region in 1903 when the
Mineral Survey of the Northern
Protectorates was created by the British
Colonial Government. A year later, the
Mineral Survey of the Southern
Protectorates was also founded.
Nigeria is richly endowed with diverse
mineral resources that if properly
harnessed could serve as a veritable
alternative revenue source. Among the
Location
Benue, Cross Rivers, Adamawa, Yobe, Nasarawa, Enugu,
Taraba States
Yobe, Abia, Anambra, Adamawa, Edo, Imo, Ebonyi, Akwa
Ibom, Cross Rivers, Benue, Borno States
Plateau, Kano, Kaduna, Bauchi, Kogi, Kwaara, Nasarawa
States
Plateau, Bauchi, Kano, Cross Rivers, Ekiti, Kaduna,
Nasarawa, Taraba States
Benue, Enugu, Nasarawa, Gombe, Edo, Anambra, Abia, and
Ondo States
Kogi, Oyo, Edo, Nasarawa, Kaduna States and FCT
Oyo, Edo, Nasarawa, Kogi, Katsina, Niger and FCT
Cross Rivers, Edo, Kaduna, Katsina, Kebbi, Niger,,
Osun,Zamfara States
Adamawa, Taraba, Benue, Gombe, Ogun, Imo and Borno
States
Kogi, Nasarawa,
Plateau, Bauchi, Yobe, Borno, Ogun, Ondo, Kwara, Kogi
and Imo States
Katsina, Plateau, Ogun, Bauchi, Ekiti, Ondo and Anambra
States
Nasarawa, Plateau, Taraba, Bauchi, Gombe, Ebonyi, Imo,
Kanoand Benue States
Nasarawa, Kaduna, Kwara, Kogi States
Enugu, Cross Rivers, O gun, Edo, Benue, Gombe, Sokoto,
Adamawa, Ebonyi, Imo and Yobe States etc
Niger, Osun, Kwara, Kogi, Kaduna States and FCT
Plateau, Ondo, Ogun, Bauchi, Borno, Adamawa, Kogi, Cross
Rivers, Oyo and Imo States
Nasarawa, Taraba, Enugu, Cross Rivers, Benue, and Ebonyi
States
various mineral resources that Nigeria is

blessed with include, gold, columbite,
tantalite, bitumen, iron ore, uranium and
others.
Occurrence and Reserve Estimate of
Some Major Mineral Resources of
Nigeria.
Reserve Estimates(MT)
2,000,000
1,200,000
N/A
300,000
500,000,000
16,540,000
80,292,000
N/A
2,000,000.00
478,000,000
3,600,000
20,000
N/A
1,355,980,000
40,000
3,000,000.00
N/A
Source: RMRDC Industrial studies on Base metal, Iron and steel, and Engineering services sector (5th update,2006).
Gold Mining
The Nigerian Mining Corporation
(NMC) was formed in the early 1980s to
explore gold. Lack of funds and the lure
of easier profits from oil production led
to its failure. There is no large scale gold
mining operation in Nigeria today,
though there is small-scale mining
carried out by artisanal miners. The
family of Aleye from Anka Local
Government Area of Zamfara State is one
of the leading gold families in the region.
Gold deposits are found in NorthWestern Nigeria, most prominently near

Maru, Anka, Malele, Tsohon Birnin
Gwari-Kwaga, Gurmana, Birnin Yauri,
Okolom-Dogondaji, and Iperindo in
Kwara State. Gold production began in
1913 and peaked in the 1930s. During the
Second World War, production declined.
Mines were abandoned by colonial
companies, and production never
recovered.
Coal
Coal was first discovered in Enugu in

1909, and the Ogbete Mine had opened
and begun regularly extracting coal by
1916. By 1920, coal production had
reached 180,122 long tons (183,012 t). By
the 1940s, Nigeria was a major producer
of coal. Coal deposits are also found in
parts of Benue, Ebonyi and Kogi States.
Nigeria's peak coal production was in the
late 1950s, and by 1960 production was at
565,681 long tons (574,758 t). The
Nigerian Coal Corporation (NCC) is a
parastatal that was formed in 1950 and
held a monopoly on the mining,

processing, and sales of coal, lignite, and
coke products until 1999.
The discovery of oil in 1956 hurt the
mineral extraction industries such as
coal, as Government and industry both
began to focus on this new resource. The
Nigerian Civil War in the late 1960s led
many expatriate mining experts to leave
the country. The war caused many mines
to be abandoned. After the war ended in
1970, coal production was never able to
recover. Attempts to mechanise the
industry in the 1970s and 1980s were
ultimately unsuccessful, and actually
hindered production due to problems
with implementation and maintenance.
While the domestic market for coal has
been negatively affected by the move to
diesel and gas-powered engines by
organisations that were previously major
coal consumers, the low-sulphur coal
mined in Nigeria is desired by
international customers like Italy and the
United Kingdom, who have imported
Nigerian coal. Recent financial problems
have caused a near shutdown of the
NCC's coal mining operations, and the
C o r p o rat i o n h as re s p o n d e d by
attempting to sell off some of its assets,
while it awaits the Government to
complete its privatisation activities.
It would be recalled that in April 2008,
the then Minister of Mines and Steel,
Sarafa Tunji Ishola announced that
Nigeria was considering coal as an
alternative power source as it attempts to
reform its power sector, and encouraged
Chinese investors to invest in the coal
industry. It is gratifying to note that the
Federal Government is currently trying
to p r i vat i s e t h e N i g e r i a n C o a l
Corporation and sell off its assets. The
Olusegun Obasanjo administration
began the process of selling off
government-owned corporations to
private investors in 1999.
Columbite and Tantalite
Columbite and Tantalite are ores used to
produce the elements niobium and
tantalum. Columbite and tantalite are
collectively known as coltan in Africa.
Tantalum is a valuable rare element used
in electronics manufacturing. In Nigeria,
pegmatite deposits of coltan are
frequently also the source of several
precious and semi-precious stones such
as beryl, aquamarine, and tourmaline.
These pegmatites are found in Nassarawa
State, as well as in several areas in
Southeast Nigeria. There is small-scale
mining of these minerals.
Bitumen
Bitumen was first discovered in 1900,
with focused exploration beginning in
1905. Bitumen deposits are found in
Lagos, Ogun, Ondo, and Edo States.
Conoco has performed a technical and
economic evaluation of these deposits,
and believes there are over thirteen
billion barrels of oil in these tar sands and
bitumen.
Iron Ore
Nigeria has several deposits of iron ore,
but the purest deposits are in and around
Itakpe in Kogi State. The National Iron
Ore Mining Company was founded in
1979 and given the mission to explore,
exploit, process, and supply iron ore
concentrate to the Ajaokuta Steel
Company (ASCL) in Ajaokuta and Delta
Steel Company (DCL) in Aladja.
Additional demand has come from
several steel rolling mills. The company
and its mining operations are based in
Kogi State. Export of excess iron ore
beyond what is required for domestic
needs is currently being explored.
Additionally, the Nigerian government
has invested in foreign iron ore
operations in Guinea.
Uranium
The Nigeria Uranium Mining Company
(NUMCO) was a parastatal that
controlled the exploration and mining of
uranium in Nigeria and was a
public/private partnership with Total
Compagnie Minire of France, which
owned 40 percent of the company. In
1989, Total pulled out of the partnership,
and in 1993 the Federal Government
reassigned NUMCO's responsibilities to
the Nigerian Geological Survey. The
NUMCO Corporation was dissolved in
1996, and the government is in the
process of liquidating its remaining
assets. Recently, several important
uranium deposits were discovered in
Cross River, Adamawa, Taraba, Plateau,
Bauchi, and Kano States by the British
Geological Survey.
Presently, mining of minerals accounts
for only 0.3% of GDP, due to the
influence of vast oil resources. The
d o m e st i c m i n i n g i n d u st r y i s
underdeveloped, leading to Nigeria
having to import minerals that it could
produce domestically, such as salt or iron
ore. Rights to ownership of mineral
resources is held by the Federal
Government, which grants titles to
organisations to explore, mine, and sell
mineral resources. Mining regulation is
handled by the Ministry of Solid Minerals
Development, which oversees the

management of all mineral resources.
Mining law is codified in the Federal
Minerals and Mining Act of 1999.
Historically, Nigeria's mining industry
was monopolised by state-owned public
corporations. This led to a decline in
productivity in almost all mineral
industries.
Nigeria therefore needs to diversify its
revenue base by looking into an
important sector like the solid minerals,
which remains a cash cow for many
countries in Africa such as Angola,
Congo Democratic Republic, Central
Africa Republic, Liberia, Sierra Leon,
South Africa to mention but a few. It
offers a viable alternative to petroleum
for foreign exchange earnings. Globally,
the mining industry has been a close
rival to the petroleum industry, although
Nigeria currently earns a paltry $89
million per annum from it. With the
restoration and consolidation of
democratic governance, bright prospects
for solid minerals development await the
nation.
Several factors will stimulate the mining
sector. First is the diversity of Nigeria's
metallic and non-metallic minerals.
Second, international investors like the
Chinese are prepared to bear exploration
costs and risks, given a favourable policy
framework. The New National Solid
M i n e r a l Po l i c y of t h e Fe d e r a l
Government, which replaced the old
mining laws and regulations, has offered
a competitive environment for solid
minerals development.
Third, there is available, on the
international technology market, lowcost mineral production processes
which, if properly sourced and
assembled, will minimise production
costs, thereby ameliorating the impact of
falling mineral commodity prices as has
been the case with precious metals and
gold. Deregulation of the mining sector
under the Nigerian Investment
Promotion Council Decree 1995 allows
for 100 per cent foreign ownership of
mining operations and other related
enterprises.
According to the Executive Director of
the Nigerian Export Promotion Councils
(NEPC) Mr. David Adelugba, a total of 34
minerals of commercial quantities have
been found in Nigeria which is more
than oil, the Ministry of Solid Minerals is
helping in their production, and the
NEPC job is to find the market.
Transforming
Tourism for
Economic
Diversification
By: Hauwa Dahiru Mohammed
rom time immemorial,

tourism has been seen not
only as an aspect of cultural
transmission, but also a
manifestation of naturally
endowed potentials both in concrete and
abstract terms, located within a
community or society through which it
entertains and enhances its members'
living conditions. By so doing, it
i n d i r e ct l y c r e ate s a n e n a b l i n g
environment that attracts local and
foreign investors through whom the
society concerned generates internal
reve n u e , c re ate s e m p l oy m e n t
o p p o r t u n i t y a n d p rov i d e t h e
environment for economic growth and
development. Following this process,
Egypt for instance became a centre of
tourist's attraction that captivates the
attention of the world over the centuries.
Nigeria is a multilingual nation
consisting of over 300 ethnic groups with
each blessed with specific history,
culture and tradition. Tourism is largely
embodied in culture; and culture is
conveyed in two formsmaterial and
immaterial.
The term material culture is used by
archaeologists to define a non-specific
way to refer to the artefacts or other
concrete things left by past cultures.
Immaterial aspects of culture include
cultural ideas, myths, stories, philosophy,
cultural attitudes and behaviours.
Many modern societies have learnt to
profitably transmit their cultural
dimensions in such a way that attracts
both local and foreign attention under
the term tourism. In recent times,
issues like educational excellence,

effective healthcare delivery system and
eco-tourism have become veritable
attractions for tourists.
However, despite the availability of high
level of material and immaterial cultural
materials which could have helped to
strengthen the tourism sector for
increased internally generated revenue
(IGR) and employment opportunity,
Nigeria has so far recorded little revenue
from tourism as a result of lack of
adequate awareness of the benefits of the
sector, absence of legal and regulatory
framework, low disposable income to
pursue tourism activities, insecurity,
non-professionalisation of the industry,
i n f r a st r u ct u r e d e f i c i e n c y, n o n implementation of the tourism policy,
lack of political will to pursue a tourism
development master plan, etc.
To achieve its economic objectives, the
Government of the largest economy in
the United Arab Emirates (UAE), Abu
Dhabi has embarked on major initiatives
to re-invest its oil revenues in such
sectors as tourism, construction,
electricity and water and manufacturing
industry. Following this track, in the last
five years, Abu Dhabi has recorded a fat
gross domestic product (GDP) nearly put
at $100 billion given its population
which is just 1.463 million people. With
a total per-capital GDP exceeding
$68,000, Abu Dhabi is rated among the
world's wealthiest city states such as
Luxembourg, Ireland and Singapore.
Just as tourism sector has made
tremendous contribution to the
development of Turkish economy with

$20 billion revenues in two years as
recorded by the World Bulletin (2009),
Australia recorded a considerable
revenue generation from tourism as its
collective expenditure on travel and
tourism amounted to an estimated
$2,422m in 2008 and, $2,893m in 2009,
trending up to a forecast $3,452m by
2014. This has helped to improve the
economy in spite of the constant
occurrence of attack it suffers from
natural disasters.
It would be a welcome development if
Nigeria can shun mono-economic
practice and diversify its oil revenue to
other sectors like tourism. This will help
largely in income diversification and
revenue generation.
Putting in place hospitable environment
that attracts both local and foreign
attention is always the major outlook for
the nations that have derived robust
revenue from tourism. Thus, Nigeria
must invest in the hospitality industry to
attract both local and foreign tourists to
its tourism sector.
It is regrettable that even with the
dwindling revenue from the oil industry,
government has paid little or no
attention to the development of tourism
infrastructure such as national parks,
game reserves, beaches, plateau, forestry
development, natural sports, hotel
accommodation, hostels, guest houses,
camps, catering services, museums,
cultural shows, drama & dances, souvenir
carvings, weavings, sculptures and
various art works, parks, conferences,
fairs, exhibitions, festivities among
others, which would have helped in
economic diversification. This lukewarm
attitude has led to huge loss of revenue
that would have accrued from the
tourism sector.
Ltd in Spain. This is aimed at

strengthening the
performance of tourism sector
t h r o u g h p u b l i c - p r i v at e
partnerships using both local
and international sustainable
development training,
workshops, conferences,
project formulation, fundraising, knowledge
development and
management tools.
Nigeria is a land of aquatic splendour.

Numerous beaches such as, Lagos Bar
Beach, Eleko Beach, Takwa Beach, and
waterfalls like Gurara Falls, Farin Ruwa
Falls and Owu Falls are well-known
places for tourist attraction in Nigeria, but
have so far contributed little or nothing
to the governments' IGR as a result of
inadequate maintenance, lack of
government attention and lack of
modernisation. Indeed, the country is
rich in history, culture and tradition as
manifested in festivals such as Arugungu
Fishing Festival in Kebbi State, OsunOsogbo Festival in Osun State, the Fulani
Sharo/Shadi Festival, Eyo Festival in
Lagos, Sango Festival, Benin Festival, Igbo
Celebration of Onitsha Ivories, the
famous New Yam Festival in the SouthEast among others, but these have over
the decades yielded little or no revenue
to treasury due lack of attention,
orientation, transformation and
modernisation on the part of both public
and private sectors of the economy.
For instance, the Ski Gala Festival in Japan
has attracted attention of many
international tourists and resuscitated
Japan's tourism sector. The institution of
this requires a strong commitment and
increased funding on the part of
government to build the tourism
infrastructure, public-private partnership
and thereby creating more employment
opportunity.
As a way of addressing these challenges,
improvement in the means of

transportation and communication
must be seriously considered in the
nation's road map towards the revival of
tourism business. The upsurge in road
traffic accidents across the country,
which impedes tourism development, is
fast assuming a worrisome dimension
with hundreds of lives lost annually.
For instance, in the 2010 estimated
statistics related by the Federal Road
Safety Corps (FRSC) Nigeria recorded
7,737 road accidents, which resulted in
the death of about 1,056 persons. In the
last three decades, Nigeria has recorded
series of mishaps in the aviation sector
with several casualties. The litany of air
mishaps in the country especially in the
recent past, is still fresh in our memory.
This phenomenon scares foreign tourists
away and poses negative consequence
on tourism development.
Efforts should be made towards forging
an effective institutionalisation of a
public-private partnership. That is, the
Federal Government must immediately
conduct assessment survey to ascertain
the different steps and facilities needed
to attract tourists in potential areas. This is
necessary as the government cannot do
it all alone.
To ensure a sustainable growth and
development in its tourism sector for
instance, the Spanish government has
over the years been in partnership with
private sector players such as Amadeus
The Federal Ministry for

Culture and Tourism in
collaboration with the Nigeria
To u r i s m D e v e l o p m e n t
Commission (NTDC),
National Theatre of Nigeria
(NTN), Nigeria Institute for
Hospitality and Tourism
( N I H O T O U R ) , N at i o n a l
I n st i t u te fo r C u l t u ra l
Orientation (NICO), National
Commission for Museums
and Monuments (NCMM) and
the Centre for Blacks and African Arts and
Culture (CBAAC) should develop an
effective national tourism orientation
program to promote culture and tourism
as a foreign exchange earner, income
distributor, major employer of labour, a
catalyst for rural development, poverty
reduction and fostering peace and unity
i n t h e c o u n t r y. T h i s c a n b e
c o m p l e m e n te d by t h e s p e c i a l
intervention of relevant departments
and agencies.
Certainly, professionalism is desirable to
advance Nigerian tourism industry,
especially with regards to accurate
information, safety, complex and
expensive training requirements which
c o u l d b e n e f i t b ot h l o c a l a n d
international tourists. This has been
successfully exercised by the Chile and
Argentina Governments. For instance,
Chile professional-based tourism
industry has generated about US$10
billion, comprising 3.5 per cent of GDP
and employing about 200,000 people in
the 2010 fiscal year.
The three tiers of Government in Nigeria
have a role to play towards the profitable
transformation, implementation and
actualisation of the nation's tourism
objectives. When each level of
Government observes its tourism
mandate dutifully, alliance with the
private sector will be a simple task. The
Federal Government needs to work hand
in hand with the Presidential Council on
Tourism and Federal Ministry of
Tourism; the state governments can join

forces with tourism departments and
agencies in the states; while local
governments can partner with their local
tourism committees towards the
transformation of the national tourism
sector.
Government can exploit international
ideas most especially those instituted by
United Nations World Tourism
Organisation (UNWTO) and the local
media in the creation of effective
awareness on tourism and its benefits at
all levels.
Tourism objectives can also be
incorporated into national education
curricula as it has been
s u c c e s s f u l l y
implemented in Ireland
by its National Tourism
Development Authority
in 1991. The program was
specifically designed for
students within the
second-level education
s y st e m , a s a n
introduction to tourism
at home and abroad. This
has helped to enrich
learning experience for
students and a support
network for participating
schools.
Constant awareness on
tourism has helped to
generate revenue
a m o u n t i n g t o $ 1. 3
trillion in the 2007 fiscal
year in California, United
States. Travel and tourism
has a major, significant
and increasingly positive
impact on the national
economy.
public, media, stakeholders and opinion

leaders.
The programme included a sensitisation
campaign through seminars, business
fora, media campaigns and televised
documentary productions with the
primary aim to educate the local
communities as this would help to
generate a cohesive programme of
awareness and a better appreciation of
the industry as a whole. Inadequate or
non-implementation of regulatory
legislation has so far jeopardised
Nigeria's tourism sector.
It is high time Nigeria upgraded to a
profitable and international standards, its
There is the need for the full

implementation of the National Tourism
Policy (NTP) of 2005, the Nigerian
Tourism Development Corporation
(NTDC) law of 1992 and the Nigeria
Tourism Development Master Plan of
2006 to address the growing challenges
in the tourism industry.
existing centres for tourist attractions

such as Yankari National Game Reserve,
Kainji Lake National Park, Old Oyo
National Park, Jos Wildlife Park, Hadeija/
Nguru Wetland Birds Sanctuary, Okomu
Wildlife Park, Edo State, Lekki
Conservative Centre, Lagos Bar Beach,
Eleko Beach, Takwa Beach, Gurara Walls,
Farin Ruwa Falls, Owu Falls and the
various amusement parks.
For instance, the implementation of the

N a t i o n a l To u r i s m A w a r e n e s s
Programmes launched by the Trinidad
and Tobago Tourism Development
Company (TDC) in 2006 has helped to
raise awareness and understanding on
the importance of tourism to the local
economy among members of the
Human beings are at the centre of

concerns for sustainable development.
They are entitled to a healthy, secured
and productive life in harmony with
nature. The issue of the upsurge of
insecurity in the country needs to be
critically addressed if Nigeria is to uplift
its tourism sector. Nigeria has faced

several security challenges such as Boko
Haram, violent crimes, civil unrest,
kidnapping for ransom, socio-religious
crises, and political crises and terrorism
to mention but a few.
This has endangered the nation's internal
peace and harmony, political stability,
and consequently tourism in Nigeria. A
report from the World Tourism
conference held at Manila, Philippines in
October 1980, considered security as a
key role in tourism development. Nigeria
must adopt positive measures to curb
insecurity influence in the country.
The establishment of a comprehensive
and well-coordinated agenda for tourism

at national, states and grassroots levels
must be embarked upon. Government
can strategise and develop a viable
advocacy programme to popularise its
tourism agenda throughout the six geopolitical zones and across the 36 states.
This can be achieved by seeking
partnership with the private sector in the
p rov i s i o n of c r u c i a l to u r i s m
development capital intensive projects
such as electricity, security, road and
healthcare facility in the rural
community. This will help the local
communities to develop and safeguard
projects that will contribute positively to
the lives and conditions of the people.
refers to effective national policies, laws, physical infrastructure

(road, electricity, water, healthcare, etc.) and other
infrastructure (access to education, banks etc.) that need to be
put in place for people to be able to use information and
communication technologies (ICTs) for economic,
commercial and social advantages.
For instance, the United Arab Emirate (UAE) has been able to
put in place enabling environment to pull both local and
foreign investors through which it has recorded a remarkable
development in its economic activities. Following this trend,
Dubai became the largest economy in UAE after Abu Dabi.
Even with vast human and material resources that could help
to drive manufacturing, Nigeria still lags behind other
countries because of underutilisation of these resources.
Canada for instance is noted for wood production and
accounts for 10 percent of global forestry product. The country
has recorded more than 75 percent (23.5 million hectare)
landscape for forest production. Consequently, it has put in
place effective forest protection laws backing forest harvest.
Through forest production, Canada has been able to save about
three million jobs in the last five years. This example can be
contrasted with the Nigerian situation where Jebba Paper Mill,
which would have paved way for employment opportunities
in Nigeria, was allowed to collapse.
Again, regular power supply has marked the basis for
amplifying the level of intensive capital production among the
G8 economies of West Germany, France, Italy, Japan, United
Kingdom, United States, Russia and Canada. Ghana has
followed same trend and is currently attracting most of foreign
manufacturers such as Dunlop Nigeria Limited which has
vacated Nigeria because of irregular power supply. Irregular
power supply has plagued Nigeria's economic activities over
the years. Not only has it discouraged prospective local and
international investors, it is also driving away existing
manufacturing industries.
About 90 percent of textile industries previously operating in
the country have relocated to other countries in search of
regular power supply. This has caused the nation millions of
jobs. Electricity generation, which presently stands at 3,800
Mega Watts, cannot sustain the nation's energy needs.
Recently, the Nigeria Energy Commission (NEC) reported that
the manufacturing sector alone will consume about 2,000
Mega Watts of electricity to keep existing factories running at
installed capacity. Developed economies have taken advantage
of security of lives and property in pursuit of sustainable
growth and development.
Just as United Kingdom has put in place effective security
strategy by constantly reviewing its security strategy thus
drawing local and foreign capitals, Nigeria can follow same
trend and instil workable security tactics that will give
confidence to current and potential investors.
Not minding the abundance of research and development
(R&D) institutes, Nigeria has demonstrated a non-considerable
habit R&D. These institutions are poorly funded as is evident
in the annual budgetary allocations. The United States places
more emphasis on R & D by allocating 64.8 percent to R & D in
2010.
Lack of implementation of research discoveries is another

menace discouraging manufacturing as well as research and
development in Nigeria.
Nigeria needs a considerable review of its tax policies, which
must be done to magnetise investment and commercial
activities from both local and international directions, and as
well discourage unbridled importation of goods, especially
basic needs for which the country has production capacity.
Company Income Tax Act (CITA) of 1961 amended in 2007
mandates a deduction of 30 percent tax rate on a company's
annual income for the assessment year. Considering the
dampening level of infrastructural facilities in the country, this
percentage would become a burden on some industries, as
they might lack the capacity to dutifully observe their tax
obligation at regular periods.
An enabling environment and favourable industrial tax rates
are two of the most important factors that put Russia among
one of the eight largest industrial economies nations. The
country imposes between 20 percent and 24 percent on
manufacturing companies.
Tax can also be used as a weapon to discourage the ongoing
massive level of importation. For instance, the Central Bank of
Nigeria (CBN) reported that Nigeria spent N155bn on rice
importation in 2010. This awful phenomenon has called for a
question as to why should Nigeria be a major importer of rice
despite being blessed with suitable land and good climate to
produce the commodity locally? Consistent massive
importation has altered the nation's foreign reserve from $46
billion to $33 billion in 2009 and 2010 respectively.
There is a need for the review and full implementation of the
Nigerian Industrial Policy of 1977, which aims to encourage
and advance the interest of Nigerians and enhance their full
participation in the control and management of business
activities in the country. Abuses and shortcomings in the
implementation of this policy have prevented the full
realisation of its noble objectives. It has been reported that
foreigners still connive with Nigerians to fake business
ownership in the country. Consequently, citizens have little
control on industrial enterprises.
Nigeria can learn from the French government which has put
in place favourable industrial policy that has over the years,
helped to protect its citizens' participation in national
enterprises to attain international competitive advantage. The
country has leveraged this to attain the fifth position among
the world largest and wealthiest economies, and second
largest economy in Europe.
Another way Nigeria can stimulate manufacturing which has
considerable employment opportunity is to encourage
recycling the industry. Available data shows that the average
household produces about one tonne of rubbish every year.
United Kingdom has seen waste management as an
opportunity for recycling activities and employment creation.
Waste materials have for long posed environmental challenges
to Nigeria but the country can take advantage of its
environmental shortcomings to develop a workable recycling
system. This will resolve the twin challenge of environmental
pollution and unemployment.
Mbam's RMAFC: Forging Acceptable Fiscal Federalism
he story of how the northern and southern

protectorates were amalgamated by Lord Fredrick
Lugard in 1914 has been taught in primary schools
for ages. When Bernard Bourdillon became the
Governor-general in 1939, he initiated and laid the
foundation of federalism in Nigeria by creating three
provinces. He handed over the constitution to his successor
Arthur Richards and it became the Richards Constitution of
1946. Nigeria's peculiar brand of federalism has continued to
evolve since the Richards Constitution formally recognised
the Northern, Eastern and Western regions.
As the country's federalism enlarged, so also are
issues regarding fiscal federalism. The latter has in fact
remained dominant and most contentious because of its
multi-dimensional perspectives.
Fiscal federalism refers to the allocation of tax-raising
powers and expenditure responsibilities between levels of
governments (Akindele S.T and Olaopa, 2002). It also concerns
the division of public sector functions and finances among
different tiers of government (Ozo-Eson, 2005:1).
Colonialism and military incursions in the country's
political life combined with cultural plurality has made the
issue of revenue allocation and its attendant interactions in
terms of fiscal relations to be characterised by hostile
competition, unending struggle and survival of the fittest
syndrome.
To resolve the age-long rivalry and bickering resulting
from distribution of resources, various attempts have been
made by successive governments but almost 100 years since
amalgamation in 1914, the country is yet to successfully
resolve the matter.
Aside commissions and committees, there have been
various decrees emplaced since 1946 to resolve the issue of
fiscal centralism and give Nigerians a true fiscal federalism.
The very issue of derivation, which is now a sing-song within
the polity was actually first recommended by the Phillipson
Commission set up by the colonial administration in 1946. In
addition, it advised a principle of even development as criteria
for distribution of revenue.
In 1951, the Hicks-Phillipson Commission
introduced need, derivation, independent revenue or fiscal
autonomy and national interests as the criteria for revenue
sharing. And in something akin to a ding-dong, the Chicks
Commission of 1953 brought back derivation. Again in 1957,
the Raisman Commission recommended that need, balanced
development and minimum responsibility are the issues that
should be considered in allocating resources. In percentage
terms, Raisman gave 40 percent accruable revenue to the
north, 31 percent to the east, 24 percent to the west and 5
percent Southern Cameroon.
With the creation of Mid West Region, the Binns
Commission of 1964 rejected the principles of need and
derivation and replaced it with the recognition of regional
financial comparability and percentage division. It allocated
42 percent to the north, 30 percent to the east, 20 percent to
the west and 8 percent to the mid-west.
As the civil war raged in 1969, the Dina Commission
set up by the Yakubu Gowon regime recommended national
minimum standards, balanced development in the allocation
of the states joint account and basic need for the existing 12
states structure.
By 1977, Nigeria was already enjoying the oil boom
for about four years and late professor of Economics, Ojetunji
Aboyade was appointed to head a technical committee on
revenue allocation. The committee recommended that
By Sanya Adejokun
allocation be made on the basis of national minimum standard
for national integration (22 percent), equality of access to
development opportunities (25 percent), absorptive capacity
(20 percent), fiscal efficiency (15 percent) and independent
revenue effort (18 percent). Other criteria are: 57 percent to
Federal Government, 30 percent to state governments, 10% to
local governments and remaining 3 percent to a special fund
With the advent of democracy, President Shehu Shagari set up
the Okigbo Committee in 1980 which recommended
percentages on principles: Population (4 percent), equality (4
percent), social development (15 percent) and internal
revenue effort (5 percent). Percentages for governments:
federal (53 percent), states (30 percent), local governments (10
percent), Special Fund (7 percent).
Military president Ibrahim Babangida again
commissioned Gen. Theophilus Danjuma and some others in
1988 to still review revenue allocation formula. The
commission consequently recommended 50 percent to the
federal government, 30 percent to states and 15 percent to
local governments. The remaining five percent was reserved as
special funds but disbursed at the discretion of federal
authorities.
And for the first time ever, Gen. Babangida, set up the
National Revenue Mobilisation Allocation and Fiscal
Commission as the first permanent fiscal body in Nigeria
through Decree 49 of 1989.
The recognition by the 1999 Constitution of Revenue
Mobilisation Allocation and Fiscal Commission (RMAFC) was
a response by the Federal Government to provide for an allembracing and permanent revenue body in Nigeria.
The law provides for the appointment of 37
members of the commission drawn from each of the states
and FCT to be led by a Chairman. Each member is appointed
for a term of five years in the first instance but renewable at the
discretion of the President of the Federal Republic. Members
are referred to as federal commissioners and work through the
committee system.
Aside the current Chairman, who is an accomplished
engineer and former Minister of State for Finance and
Chairman of Federation Accounts Allocation Committee
(FAAC), in the rank of other members are engineers, former
ministers, former senators, former university vice chancellors,
retired generals, former ambassadors, former bank executives,
former accountant generals who are people of unquestionable
character and proven integrity,
Duties and responsibilities of RMAFC includes
monitoring accruals into and disbursement of revenue from
the federation account; periodic review of revenue allocation
formula and principles in operation to ensure conformity with
changing realities; advising the three tiers of government on
fiscal efficiency and methods by which their revenue is to be
increased; determining remuneration packages for political
office holders and; discharging such other functions as may be
conferred on it by the constitution or National Assembly.
In performing its oversight functions of monitoring
accruals into the Federation Account, RMAFC has had brushes
with some agencies like the Central Bank of Nigeria (CBN) and
Nigerian National Petroleum Corporation (NNPC) in the past.
Statutorily, the Commission is empowered to scrutinise
account books of revenue generating agencies of government.
In this capacity also, representatives of the Commission are
members of boards of such agencies. The body has also played
mediatory roles in controversies and misunderstandings
among states concerning allocations.
In line with its mandate to review revenue allocations,

the commission submitted a draft formula in 2001, proposing
allocation of 41.3 to the federal government, 31 percent to
states, 16 percent to local governments and 11.7 percent to
special funds. However, this particular proposal was nipped in
the bud following a Supreme Court pronouncement on
resource control in April 2002.
The judgement was an opportunity for President
Olusegun Obasanjo to further perpetuate fiscal centralism.
Thus in 2004, he introduced the current formula used in
distributing resources to the beneficiaries through an
administrative order.
Over the years, there have been criticisms of the
criteria used for allocating resources. For instance, there are
allegations that they were not based on a rational
consideration but done on the basis of other primordial
considerations. It is argued that this formula only crippled the
revenue generation capacity of each state, as states rely wholly
on the monthly allocation.
Since the current Chairman of RMAFC Engr. Elias
Mbam came into office in 2011 however, there have been
concerted efforts to fashion out an acceptable formula. This is
why it has taken more time than envisaged to produce a
promised revenue allocation formula. Nonetheless, the
Commission have concluded action on the review of the
literature.
According to Mbam, We have also visited similar
federations including India, Brazil, Malaysia, Spain and few
others, with the aim of understudying what they are doing in
their fiscal management and sharing with them their
experiences and then adopting areas that will be beneficial to
our own system. That we have done and the reports have been
compiled. We have also carried out some studies in some fiscal

matters that relate to the review of the revenue formula. In
addition to this, the Commission has toured the 774 local
government areas, the 36 states and the FCT with the aim of
verifying the data that will assist in determining the horizontal
sharing of the revenue accruing to states and local
governments. Right now the data is being processed and
analyzed and in the near future, it will be ready. We are making
steady progress and I wish to plead with Nigerians to please
bear with us, give us some time and we will come out with a
result that will be fair to all.
Also, Mbam had forged a collaboration among
revenue generating agencies to ensure that more revenue
hitherto did not exist is mobilised. This has led to solid
minerals sector, which never contributed to the Federation
Account now generating more than N1 billion ready for
sharing to all the tiers of government including 13 percent
derivation to solid minerals producing states.
By the time the present commission settled down, it
was discovered that most states were in dire financial straits and
finding it difficult to pay even salaries; manufacturing was
almost dead, tourism was contributing less to the economy,
etc. And so, in line with its mandate to ensure fiscal efficiency a
standing committee on diversification was constituted to look
at ways that the nation's economic could be broadened.
RMAFC then organised regional workshops on revenue and
resource diversification for states, local governments and the
private sector.
The commission has also submitted memoranda to
the National Assembly on constitution amendment among
other achievements.
Table 1: Brief Historical Outline of Revenue Allocation Formulas in Nigeria

Date
Federal
State
Local
Govt%
Govt.%
Govt.%
Aboyade Commission
1977
57.00
30.00
10.00
Okigbo Commission
1980
53.00
30.00
10.00
Revenue Allocation Act
1981
55.00
30.50
10.00
Pre-Supreme Court - Legal
Pre-April 2002
48.50
24.00
20.00
Decrees/Law
Pre-Supreme Court August 2001
41.23
31.00
16.00
RFMAC Proposal
Supreme Court Ruling
April 2002
Post-Supreme Court May 2002
56.00
24.00
20.00
Executive Order # 1
Post-Supreme Court July 2002
54.68
24.72
20.60
Executive Order # 2
Post-Supreme Court January 2003
46.63
33.00
20.37
RMFAC Proposal
Latest RMFAC Proposal
Submitted to
47.19
31.10
15.21
President
September 20,
2004
Presidential Proposal
Submitted to
47.19
31.10
15.21
NASS January 25,
2005
ITEM
Special Funds%
Total%
3.00
7.00
4.50
7.50
100.00
100.00
100.00
100.00
11.70
100.00
Current allocation ruled unconstitutional

0.00
100.00
0.00
100.00
0.00
100.00
National Priority Services Funds*:Eco logy 1.50Mineral Devt. - 1.75Agric Devt. - 1.75Reserve
Fund - 1.50-----------------Total - 6.50{joint
Fed/State/ LG management}
Ditto+ Horizontal formulas**+ State Derivati on
Funds Boards to manage 13% derivation***
100.00
*General Ecological Fund (1.50 per cent); Solid Minerals Development Fund (1.75 per cent); National Agricultural Development
per cent) and National Reserve Fund (1.50 per cent). TABLE 2: New Horizontal Formulas for Distributing Revenue
S/N
ITEM
To States(Col. 1)
To LGs(Col. 2)
Could have Been
Should have been
for LGs(Col. 3)
for LGs(Col. 4)
1
Equality
45.23
0.00
0.00
0.00
2
Population
25.60
30.83
46.74
25.00
3
Population Density
1.45
6.45
2.64
5.00
4
Internal Revenue Generation Effort
8.31
13.31
15.17
20.00
5
Land Mass
5.35
10.35
9.77
5.00
6
Terrain
5.35
10.35
9.77
5.00
7
Rural Roads &Inland Waterways
1.21
6.21
2.21
10.00
8
Potable Water
1.50
6.50
2.74
10.00
9
Education
3.00
8.00
5.48
10.00
10
Health
3.00
8.00
5.48
10.00
Total
100.00
100.00
100.00
100.00
% From FG
31.10
15.21
15.21
15.21
100.00
Fund (1.75
Note: [(Col. 2) = (Col. 1) + 5] except for Equality ( = 0) and Population [ = (Col. 1) +5.23 ]Note: Except for Equality:(Col.
3) = (Co l. 1) * [ 1 +
45.23/(100 -45.23) ] = 100 * (Col. 1)/54.77 since 45.23% should have been re
-distributed in proportion to original ratios (minus
equality)***Table 3: Sharing of 13% Derivation Fund (to be managed by States Derivation Fund Boards)
Item
13% Derivation:
Basis of Sharing
percentage shared
Among entities
To States
60.00
Relative to Quantum of Production
To Local Governments
30.00
50% quantum; 20% equality20% population; 10% self -help projects
To Community
10.00
To be specified according to relevant Assembly (House or National)
Total
100.00
Source: Nigerian Village Square
ICTs: Technology you must

be involved
By Mercy Ozele
s the world is changing day by

day, like wise technology is
improving globally. As the
inventors are cracking their
brains to introduce new
system of technology so also the people
are growing with them.
No wonder, technology like the new

Information and Communication
Technology(ICTs) has become the order
of the day globally, everything has
become computerised. Unlike in the
years gone by, when one wants to hear
from ones' parents or extended family
members or friends who live in another
town, state or country, one must write a
letter beginning with something like
Dear daddy, mummy, brother, sister
or friend, with love and happiness I
am writing this letter to you, how are
you and.. and so on and so forth and
then the person would need to get
envelop and stamp and post the letter
which takes weeks and months to get to
its destination depending on the
distance and effectiveness of the courier
service.
But now the story has changed, with a
simple touch of a button one easily gets
connected via GSM or the internet to
whomsoever one wants to reach
regardless of time and distance. What
about you readers, are you still using the
analogue systemplease can you help
me type this letter? I want to open an
e-mail / check my mail, please can
you help me? Have you ever helped
someone to open e-mail, ask him or her
if he or she could still remember his or
her ID name or pass word, chances are
that that person can hardly remember
either. So what are you doing with your
time? Are you still part of the analogue
world?
The internet is a computer- based global
information system composed of many
interconnected computer networks with
each linking thousands of computers
enabling them to share information. It
has developed to give many benefits to
mankind, access to information being
one of the most important. The internet
has brought new opportunities to
government for participatory democracy,
transparency and good governance.
Governments use it for various processes

such as dissemination of information
and internal communication.
It has many uses which include
managing relations with others,
conversation and social exchange(social
networking), social attachment and
avo i d a n c e , s o c i a l l e a r n i n g a n d
identification with role models, control,
s h a r i n g a c t i v i t y, v i c a r i o u s
companionship, filling time and framing
daily activity.
Combining the audio-visual functions of
television, the audio effect of radio, and
the textual details of print, the Internet
offers users multiple opportunities for

interaction, across space, in chosen time
and at a great speed. In basic terms, the
Internet allows users to send and receive
e-mails, and e-mail attachments.
They are also able to chat with others
(known or unknown), and to participate
in discussions in newsgroups, listserves,
and usenets, amongst peoples in
different geographies. Besides, they are
able to source and/or circulate personal
or group information; to engage in audio
or video teleconferencing; to transact
business; to fall in and out of
relationships; and to process, share, store
and retrieve images, signs and symbols.
Gratifications sought or obtained in

internet uses according to scholars of
internet studies include, information
and education, guidance and advice,
diversion and relaxation, social contact,
value reinforcement, cultural satisfaction,
emotional release, identity formation
and confirmation, lifestyle expression,
security, sexual arousal and filling time.
It is noteworthy that the internet has
become part and parcel of humanity as

its application permeates every strata of
human society so much that one cannot
imagine a world without it. Life without
the internet would be tortuous,
disconnected and disoriented to people
who are familiar with it
Ladies and gentlemen, why not take
advantage of the endless opportunities
offered by the new media to qualify as a
digital citizen with a permanent abode
in the information super highway. The
social media platform like, Yahoo, Face
Book, and Twitter connect you with
t h o u s a n d s of u s e rs c o m p r i s i n g
colleagues, relations, friends and
associates with whom you share
common interests.
Legislative Round Table
On June 7, 2011, RMAFC Organised an Interactive Session with Members

of the National Assembly at the international Conference Centre, Abuja.
Here Fiscal Monitor brings you excerpts from the Presentation of
RMAFC Chairman, Engr. Elias Mbam
Paragraph 31 Part I of the Third Schedule to the 1999

Constitution of the Federal Republic of Nigeria (as amended),
states that the Revenue Mobilisation Allocation and Fiscal
Commission shall comprise the following Members
Chairman and one Member from each state of the Federation
and the Federal Capital Territory, Abuja who in the opinion of
Mr. President are persons of unquestionable integrity with
requisite qualification and experience.
By virtue of Section 155(1) (c) of the 1999 Constitution,
Members of the Commission are appointed by the President
for a period of five (5) years and may be re-appointed for a 2nd
term and no more.
Functions
The functions of the Commission as provided under the
provisions of RMAFC Act Cap R7 LFN 2004 are also
encapsulated under Paragraph 32(a-e) of Part I of the Third
Schedule to the 1999 Constitution (as amended). The said
Paragraph 32 provides thus: The Commission shall have power
to: monitor the accruals to and disbursement of revenue from
the Federation Account; review from time to time the Revenue
Allocation Formulae in operation to ensure conformity with
changing realities; Provided that any formula which has been
accepted by an Act of the National Assembly shall remain in
force for a period of not less than five years from the date of
commencement of the Act.
It also has the responsibility to advise the Federal and State
Governments on fiscal efficiency and methods by which their
revenue can be increased; determine the remuneration
appropriate for political office holders, including the
President, Vice-President, Governors, Deputy Governors,
Ministers, Commissioners, Special Advisers, Legislators, and
the holders of offices mentioned in Sections 84 and 124 of this
Constitution; and discharge such other functions as are
conferred on the Commission by this Constitution or any Act
of the National Assembly.
he history of the establishment of bodies to deal

with formal revenue allocation and other fiscal
issues in Nigeria dates back to 1946 following the
adoption of the Richards Constitution. That
Constitution laid the foundation for fiscal federalism
in Nigeria by granting autonomy to the Regions and
demarcating responsibilities between the Regions and the
Federal Government. From then on, Nigeria witnessed various
political changes and constitutional reforms.
Correspondingly and in response to these changes, a number
of fiscal Commissions were constituted to design appropriate
revenue sharing formulae and independent revenue sources
for each level of government to undertake its constitutional
responsibilities as well as reflect changing realities. It is worthy
to note that in addition to these Commissions, the various
military regimes which occasioned our political history also
promulgated several decrees to modify revenue formulae and
sharing arrangements in operation.
The summary of such Commissions set up in Nigeria are as
follows: Phillipson Commission- (1946); HicksPhillipson
Commission-(1951); Chicks Commission- (1953); Raisman
Commission- (1958); Binns Commission- (1964); Dina
Interim Committee- (1968); Aboyade Technical Committee-
(1977) and; Okigbo Commission- (1980).

Each of these Commissions or Committees came into being
under different political and economic circumstances. Thus,
they were ad hoc in nature and disbanded on completion of
their assignments. However, with the increased complexity of
intergovernmental fiscal relations, particularly as a result of the
creation of more States and Local Governments in the country,
the need for a permanent body to handle fiscal matters on a
continuous basis arose. Consequently, by Decree No. 49 of
1989 (now Act of the National Assembly) the Federal Military
Government of Gen. Ibrahim Badamasi Babangida established
the then National Revenue Mobilisation Allocation and Fiscal
Commission under the Chairmanship of Gen. T.Y. Danjuma
(rtd). The law establishing the Commission was later amended
by Decree No. 98 of 1993 (now Act). Since then, the
Commission has been in existence.
Subsequently, the Commission was re-named Revenue
Mobilisation Allocation and Fiscal Commission (RMAFC) and
listed among the fourteen (14) Federal Executive Bodies
contained in Section 153(1) of the 1999 Constitution of the
Federal Republic of Nigeria (as amended).
Membership
Let me further explain these functions of the Commission and

the activities involved as follows:
Monitoring of Accruals to and Disbursements from the
Federation Account:
Section 162(1) provides that: The Federation shall maintain
a Special Account to be called the Federation Account into
which ALL REVENUES collected by the Government of
the Federation shall be paid except proceeds from the
personal income tax of the personnel of the Armed Forces
of the Federation, Nigeria Police Force, Ministry or
Department charged with the Responsibility for Foreign
Affairs and the residents of the Federal Capital Territory,
Abuja.
To monitor the accruals into the Account as required of the
Commission, it conducts periodic field visits and regularly
carry out checks and analyses of records of the collection and
remittance of revenue payable into the Account by the
Revenue Collecting Agencies mainly the NNPC, FIRS, NCS and
DPR. In the monitoring of disbursement of funds from the
Account including the 13% Derivation Fund, the Commission
obtains data from relevant Agencies such as Department of
Petroleum Resources (DPR), Surveyor-General of the
Federation (SGF) and National Boundary Commission (NBC),
etc. Such data is used to compute indices upon which

amounts in the Federation Account are shared to all tiers of
Government. Furthermore, the Commission as a Member of
the Federation Account Allocation Committee (FAAC) takes
part in its technical revenue reconciliation and Plenary
Sessions of FAAC. The Commission also conducts post
disbursement monitoring activities through the Post-Mortem
Committee which was established through the efforts of the
Commission to carefully examine the records of
disbursements made by the FAAC.
Review of Revenue Allocation Formula
Section 162(2) of the 1999 Constitution of the Federal
Republic of Nigeria provides that: The President, upon the
receipt of advice from the Revenue Mobilisation
Allocation and Fiscal Commission, shall table before the
National Assembly proposals for revenue allocation from
the Federation Account and in determining the formula,
the National Assembly shall take into account the
allocation principles especially those of population,
equality of States, internal revenue generation, land mass,
terrain as well as population density.
Provided that the principle of derivation shall be constantly
reflected in an approved formula as being not less than
thirteen percent (13%) of the revenue accruing to the
Federation Account directly from any natural resources.
By virtue of this provision, the Commission is expected to
submit a proposal on the revenue formula as an advice to the
President who shall table same before the National Assembly
for determination. It may be necessary to state that the
fundamental review of Revenue Allocation Formulae was
undertaken in 1992. The current Revenue Allocation Formulae
was introduced through a Circular from the Federal Ministry
of Finance in 2004 as an Administrative/Executive Fiat.
The Commission considers this Modification Order as an
interim and palliative measure pending the approval of a new
revenue formula by the National Assembly. Between 2002 and
2004 and in the succeeding years, the Commission made
several efforts to get a new Revenue Formulae approved by the
National Assembly without success.
Advise Federal and State Governments on Fiscal
Efficiency
Through this role, the Commission is able to provide input
into major economic and fiscal policies of Government. For
instance, the Commission usually makes and recommends its
independent revenue projections, macro-economic
framework and benchmarks to the Budget Office of the
Federation (BOF) during budget preparation and the National
Assembly during budget consideration.
Furthermore, the Commission obtains and examines annual
budgets of the Federal and State Governments in order to
identify patterns in proposed recurrent and capital
expenditures. This provides the basis for advice on the sources
and application of funds in subsequent budgets. In addition,
the Commission conducts revenue sensitization and
counselling programmes for all the tiers of Government to
enable them optimize their internal revenue generation.
Also, the Commission itself has been worried about the
undiversified and mono-product nature of the Nigerian

economy in spite of the abundant natural resources that
abound in every part of the country. The Commission
presently has established a Standing Committee on
Diversification of Nigerian Economy in order to continuously
address our over-dependence on hydro carbons.
Remuneration Package for Political, Public and Judicial
Office Holders
The Commission has the constitutional function of
determining the remuneration appropriate for Political, Public
and Judicial Office Holders by virtue of sections 70, 84, 111 and
124 as well as Paragraph 32(d) of Part I of the Third Schedule of
the 1999 Constitution of the Federal Republic of Nigeria
which specifically provided that the Commission is to
determine the remuneration appropriate for political office
holders including the President, Vice-President, Governors,
Ministers, Commissioners, Special Advisers, legislators and the
holders of offices mentioned in sections 84 and 124 of this
Constitution.
In this regard, it is pertinent to state as follows:
That by Section 70 of the 1999 Constitution, a member of the
Senate or of the House of Representatives shall receive such
salary and other allowances as the Revenue Mobilization
Allocation and Fiscal Commission may determine.
That by the provision of Section 84 (1) of the 1999
Constitution, there shall be paid to the holders of the offices
mentioned in section 84(1) (the President and certain other
officers at the Federal level), such remuneration, salaries and
allowances as may be prescribed by the National Assembly,

but not exceeding the amount as shall have been determined
by the Revenue Mobilisation Allocation and Fiscal
Commission.
That by Section 111 of the Constitution, a member of the
House of Assembly shall receive such salary and other
allowances as Revenue Mobilisation Allocation and Fiscal
Commission may determine, and That Section 124 (1) (4)
provides that, there shall be paid to the holders of the offices
mentioned in section 124 (4), (Governor and certain other
officers at the State level) such remuneration and salaries as
may be prescribed by a House of Assembly, but not exceeding
the amount as shall have been determined by the Revenue
Mobilization Allocation and Fiscal Commission.
Based on the constitutional provisions mentioned above, the
remuneration, salaries and allowances for Executive and
Judiciary at the federal level as well as the Executive of the F.C.T
Area Councils have to be passed into law by the National
Assembly to become effective.
However, for the Legislature at the Federal, State and Local
Government levels, the remuneration, salaries and allowances
determined by the Commission are final and shall not require
passage into law. Members may wish to note that the
remuneration, salaries and allowances for the Executive at the
State and Local Government levels are passed into law by the
State Assemblies. The details of the current remuneration
packages for each Political, Public and Judicial Office Holder at
the Federal level are contained in the certain.
Political, Public and Judicial Office Holders (Salaries and Allowances, etc) (Amendment) Act, 2008.
Office
President
Vice-President
Senate President
Deputy Senate President
Senator
Speaker
Deputy Speaker
Member
Annual Basic
Salary
(N)
3,514,705.00
3,051,572.50
2,484,240.50
2,309,166.75
2,026,400.00
2,477,110.00
2,287,034.25
1,985,212.50
Note:
i. Total Annual Emolument excludes non-regular allowances
such as Severance Gratuity, Accommodation, Furniture, Leave,
Car Loan which are paid enbloc once in the year or four years
as may be applicable.
Ii. Some allowances of certain category of Public Officers such
as President, Vice-President, Senate President, Deputy Senate
President, Speaker and Deputy Speaker of the House of Reps.
are being provided in kind.
MEMBERSHIP OF STATUTORY BODIES
Apart from the functions already discussed, the RMAFC
(Amendment) Decree No. 98 of 1993 (now Act), made the
Commission a statutory Member of the following
bodies/agencies: Federation Account Allocation Committee
(FAAC); Local Government Joint Account Allocation
Total Annual
Emolument
(N)
14,058,820.00
12,126,290.00
8,694,848.75
8,082,083.63
12,766,320.00
4,954,200.00
4,574,068.50
9,529,020.00
Monthly Total
Emolument
(N)
1,171,568.33
1,010,524.17
724,570.73
673,506.97
1,06,860.00
412,851.67
381,172.38
794,085.00
Committees of all States of the Federation and the FCT; Joint

Tax Board; Ecological Fund Committee; Niger Delta
Development Commission; and National Council on
Statistics.
The same law equally empowers the Commission to demand
and obtain regular and relevant information, data or returns
from any Government: Federal, States and Local Governments
and their agencies and more particularly the Nigerian National
Petroleum Corporation (NNPC), Federal Board of Inland
Revenue (now Federal Inland Revenue Service), Central Bank
of Nigeria (CBN) and the Federal Ministry of Finance.
There is no doubt that the constitutional responsibilities of the
Commission are not only sensitive and challenging but critical
to the practice of fiscal federalism in Nigeria. Therefore, in
discharging its duties and relating with the Agencies
responsible for the collection of federal revenues, beneficiaries

of the Federation Account, the custodian and operator of the
Account and other stakeholders, the Commission ensures that
the principles of rule of law, equity, transparency and fairness
are strictly adhered to.
CHALLENGES
In the process of carrying out its functions, the Commission
encounters various challenges, which are mainly legal.
Commission to ensure transparency in the operations of the

Federation Account and fiscal federalism in Nigeria, may I use
this opportunity to suggest as follows:
The Zonal representatives of Local Governments should be
admitted into the membership of FAAC to ensure that all
stakeholders to the Account are carried along; the statutory
allocations of Local Governments from the Federation
Account should be credited directly to the respective accounts
Lack of enforcement powers

as the laws establishing the
Commission do not contain
clauses to enable it enforce
compliance of Agencies of
Government with fiscal rules
and directives related to
various aspects of the
re s p o n s i b i l i t i e s of t h e
Commission.
There are conflicts between
RMAFC Act and the laws
establishing agencies where
the Commission has
st at u to r y m e m b e r s h i p .
Whereas the RMAFC Act
empowers it as statutory
member of certain Agencies,
the laws of such Agencies do
not expressly grant
membership to the
Commission.
The Chairman Engr. Elias N. Mbam third right introducing members of the commission to senator Uche Chukwumerije
There also conflicts between

Provisions of Section 162(2)
of the Constitution of the Federal Republic of Nigeria and laws
establishing certain Agencies of Government.
Whereas Section 162(2) declares that 'ALL REVENUES' with

few exceptions should be paid into the Federation Account,
the laws of these Agencies grant them the authority to collect,
retain and use revenues, remit only the operating surplus to
Government coffers. In most cases, these Agencies do not
remit anything at all to Government.
The law establishing the Federation Account Allocation
Committee (FAAC) excludes the membership of Local
Governments. Thus the Local Governments as a tier of
Government and direct beneficiary of the Federation Account
often express lack of confidence in the operation of the
Account.
Funding
The annual budgetary allocations to the Commission are
grossly inadequate for its capital requirements as well as
nationwide field operations involving monitoring of all
revenue collecting agencies, data collection, sensitization,
counselling and consultative exercises. This does not allow for
effective and efficient performance of the function of the
Commission.
WAY FORWARD
Having highlighted the functions and the importance of the
of each Local Government to avoid diversions and illegal

deductions by any other tier or Agencies of Government;
The Accountant-General of the Federation should be
separated from the Accountant-General of the Federal
Government in order to detach the Office from any of the
stakeholders/beneficiary of the Account.
In addition, the Commission should be given adequate
budgeting provision and other sources made available to
guarantee its independence and smooth operations as the
impartial arbiter in Nigeria's fiscal federalism.
The laws of the Agencies which authorize them to collect,
retain, use revenues and remit only operating surplus to
Government coffers should be reviewed to remove the areas of
conflict with Section 162(2) of the 1999 Constitution of the
Federal Republic of Nigeria which directs that ALL
REVENUES be paid into the Federation Account; the
enabling law of the Commission needs to be comprehensively
reviewed to include powers of enforcement. This will provide
the Commission with the authority to enforce compliance.
CONCLUSION
May I conclude this briefing by expressing my sincere
gratitude for being with you today. The Commission assures
you of its co-operation and collaboration to address the issues
that affect fiscal practices in Nigeria. Once again, we wish you a
very successful tenure in the National Assembly.
Bailing States from Looming
Bankruptcy
In response to an invitation, Engr. Elias Mbam presented a memorandum to the Senate joint committees on National
Planning, Economic Affairs and Poverty Alleviation, Finance, States and Local Governments and Appropriation.
Governments over their lack of financial capacity to pay the

new workers' wage and at the same time provide minimum
services to the citizenry.
HAT IS BANKRUPTCY
The New Webmaster's Dictionary of English
Language defines bankruptcy as the state of
b e i n g act u a l l y o r l e g a l l y b a n k r u pt ,
insolvency/complete failure. The 6thEdition of
the Black's Law Dictionary defined bankruptcy as the State or
condition of a person (Individual, Partnership, Corporation,
Municipality) who is unable to pay its debts which are, or
become, due.
This is a critical sign that the finances of most States and Local
Governments were unhealthy. Today, most States have not
been able to implement the new minimum wage. From
media reports, most State Governments have very huge
monthly wage bills, to the extent that it is being alleged that
they now use the funds of Local Governments to run their
States.
From the foregoing definitions, it is clear that bankruptcy has

both legal and accounting implications.
From the legal angle, bankruptcy is a state of insolvency
declared or certified by the court indicating that an individual
or corporate entity including government can no longer meet
up its obligations or pay its debts. On the other hand,
bankruptcy from the accounting side implies a financial
condition where a person or business is insolvent and lacks
the means to pay debts as and when due. It is also a condition
where assets cannot sustain the level of debts.
This challenge has made State Executives to call for the review
of the Revenue Allocation Formula in favour of the States.
Equally, they have also called for the removal of fuel subsidy
which they also believe would enhance the revenue accruing
into the Federation Account and invariably the statutory
allocations to their respective States and Local Governments.
Secondly, there are huge deductions from the allocations of
most of the States of the Federation for the settling of their
external and domestic debts and bonds which are indications
that most of the State Governments have collateralized their
share of the monthly Federation Account receipts to service
such debts.
In the circumstance, looming bankruptcy is examined in this

memorandum within the context of the increasing inability of
the States to meet up their obligations such as payments of
workers emoluments, contractors' fees, fund capital and social
projects as well as other basic services and cost of general
administration and governance.
The persistent nature of these deductions is worrisome as it

portends danger for the fiscal capacity of some of the States.
INDICATORS OF FINANCIAL DISTRESS IN STATES

There have been various signs of distress in the finances of the
States over the past few years as follows:
Before and after the passage of the National Minimum Wage
Act in 2011, there were series of outcries by the States and Local
Table I below shows deductions from the statutory allocations

of the State Governments from the Federation Account to
amortize Foreign Loans and other debts for the period 20092011.
Table I. Summary of Deductions from Statutory Allocation Due to States

Total Foreign & Othe r
Loans Deductions Jan
2009 - Dec 2011
Gross Stat. Alloc. Jan

2009 - Dec 2011
Total Effects
of
Deductions
on Stat. Alloc
SN
State
ABIA
5,132,627,151.22
65,601,411,691.51
7.82
ADAMAWA
6,612,142,223.20
71,447,676,208.92
9.25
AKWA IBOM
2,450,683,637.43
58,943,527,771.45
4.16
ANAMBRA
1,949,427,855.67
76,008,184,610.21
2.56
BAUCHI
9,856,598,262.96
83,269,055,175.03
11.84
BAYELSA
47,608,580,436.11
58,756,863,268.89
81.03
BENUE
8,982,702,037.62
78,921,328,355.42
11.38
BORNO
1,273,275,887. 78
90,310,545,138.25
1.41
CROSS RIVER
10,116,357,641.17
63,916,591,727.77
15.83
10
DELTA
14,859,658,105.28
55,624,245,350.56
26.71
11
EBONYI
10,716,762,978.42
60,997,764,966.51
17.57
12
EDO
8,833,495,727.42
63,807,632,551.70
13.84
13
EKITI
2,016,84 0,185.80
62,889,609,623.88
3.21
14
ENUGU
1,983,154,964.93
70,851,283,561.48
2.80
15
GOMBE
3,890,296,329.57
65,701,466,254.83
5.92
16
IMO
15,982,313,156.72
64,766,054,092.45
24.68
17
JIGAWA
3,926,936,575.30
81,187,684,415.89
4.84
18
KADUNA
7,965,276,23 0.73
92,781,899,673.14
8.58
19
KANO
5,180,801,146.86
116,762,137,644.44
4.44
20
KASTINA
4,012,347,481.50
90,307,821,023.35
4.44
21
KEBBI
6,823,446,327.73
70,809,577,545.33
9.64
22
KOGI
5,081,561,784.22
72,865,396,704.92
6.97
23
KWARA
1,458,386,446.34
69,381,060,501.18
2.10
24
LAGOS
21,606,955,583.42
96,186,606,359.61
22.46
25
NASSARAWA
6,637,830,903.90
63,735,044,066.85
10.41
26
NIGER
12,386,544,384.04
82,550,688,461.73
15.00
27
OGUN
1,305,121,597.36
74,175,944,856.18
1.76
28
ONDO
3,302,627,789.9 2
66,849,296,349.61
4.94
29
OSUN
1,698,168,002.43
71,225,225,014.16
2.38
30
OYO
7,833,482,898.86
83,764,161,239.04
9.35
31
PLATEAU
6,599,444,066.36
69,825,967,037.62
9.45
32
RIVERS
7,083,388,495.93
60,876,626,964.82
11.64
33
SOKOTO
1,915,435,735.15
83,846,771,811.38
2.28
34
TARABA
2,305,529,457.43
72,969,073,356.58
3.16
35
YOBE
1,707,895,166.69
73,915,670,649.60
2.31
36
ZAMFARA
5,795,968,344.59
71,962,476,375.61
8.05
TOTAL
266,892,065,000.06
2,657,792,370,399.90
Source: FAAC Files 2009 -2011

NOTE: The above table is only in respect to foreign debts and other loans directly tied to the Federation Account so it
does not include other exposures to Commercial banks and the Capital market which are substantial.
Records from the Debt Management Office (DMO) show that
as at December 2011 the total external debt stock of all the
States (Multilateral) stood at $2.165billion while that of the
Federal Government stood at $3.501bn and a domestic stock
of N5.622trillion for the Federal Government alone (See
Annexure I). The Commission considers this debt profile as
high.
The Commission has observed with concern the huge
domestic debt profile of the States as most of them are highly
indebted to various local banks in short term borrowing and
are substantially exposed to the Capital Market. Most of these
loans are tied to Irrevocable Standing Payment Orders (ISPOs)
issued to the Accountant-General of the Federation to deduct
directly from their monthly statutory allocations. The
implication is that these debt overhangs weigh heavily on the
monthly allocations due to the States thereby preventing them
from meeting their minimum basic obligations to the citizens.
Deficit budgeting has become a serious challenge for most
States. Even though deficit budgeting is tolerable within an
acceptable limit, its endless application has endangered and
forced the State Governments to resort to excessive borrowing
in order to meet their basic expenditure demands even where
they have no capacity to pay back.
The regular sharing of the Excess Crude Account is an
indication of the desperate financial position of the State
Governments to get funds in order to meet costs of
governance. For instance, the sum of $1.5bn was shared in
three equal installments from the Excess Crude Account in
2011 alone out of which the States received the sum of
$400.800million. (See Annexure II as evidence of the 3rd
tranche of the final payment amounting to $500million).
for the States and the nation in general.

Accordingly, the Commission is recommending that:
The National/State Assemblies should consider appropriate
Legislations limiting the total exposure of States to external
and domestic borrowing to not more than 20% of their
monthly allocations from the Federation Account. In addition,
such borrowing should be for economic projects.
Furthermore, there should be strict compliance to the relevant
provisions of the Borrowing by Public Bodies, Act (CAP.B10,
LFN, 2004) (See Annexure III);
Governments at all levels should diversify their economic base
in order to enhance internally generated revenue. The nation is
endowed with many sources of wealth such as agriculture,
tourism, solid minerals etc. That should form the basis for the
diversification and expansion of the revenue base of the States
and the nation;
There should be a review and clear definition of the exclusive
and concurrent lists with respect to the responsibilities of the
Federal, States and Local Governments for appropriate
Revenue Allocation for the discharge of these responsibilities;
The cost of Governance should be reduced drastically by
cutting down recurrent expenditure particularly, the number
of Aides, Ministries, Departments, Agencies, wastages etc.
There should therefore be more emphasis on capital projects;
Governments at all levels should imbibe budget discipline and
endeavour to have balanced budget at all times;
Grants, Stabilisation Fund and allocation from the Excess
Crude Account to States should be targeted at economic
projects that have direct impact on the people; and
The relevant Government Institutions should be strengthened
to effectively monitor and ensure full compliance with the
extant Laws in the use of public funds.
RECOMMENDATIONS
There is no doubt that if the trends highlighted above are
allowed to continue unabated, it would portend great danger
Towards Equitable Revenue Sharing Formula:

The Journey so Far
art 1, paragraph 32 (b), Third

Schedule of the amended 1999
Constitution empowers the
Revenue Mobilisation
A l l o c at i o n a n d F i s c a l
Commission (RMAFC) to review from
time to time, the Revenue Allocation
Formulae and principles in operation to
ensure conformity with changing
realities, provided that any formula
which had been accepted by an Act of the
National Assembly shall remain in force
for a period of not less than five years
from the date of commencement of the
Act.
Some of the verified indices include

hospital beds, school enrolment,
landmass, population density and
ecological factors.
The next step according to the
commission's chairman who is also
Chairman, Revenue Allocation Formula
Committee will entail town hall
meetings with critical stakeholders at the
Zonal levels. He added that the purpose
of these advocacy visits is to collect
enough data from a wider spectrum of
the society which will further enrich the
decision making processes that will
eventually berth a new formula.
In pursuance of the above mandate

therefore, the Commission has kick
started the process for the review of the
current Revenue Allocation Formula to
conform to current realities.
The country's current sharing formula
gives Federal Government 52.68 percent,
states 26.72 percent and local
government councils 20.60 percent but
perpetual clamour for resource control
and full blown fiscal federalism by the oil
producing states on one hand and the
retention of the status quo via a
comprehensive review of the Revenue
Allocation Formula by the non-oil
producing states on the other and the
attendant over-politicization of the issue
seems to be over-heating the polity and
causing unnecessary disaffection and
disharmony.
It is gratifying to note that RMAFC, which
is at the centre of it all as impartial arbiter
continues to play its stabilising role in
devising strategies and techniques for the
review of the revenue allocation formula
which should be carried out every five
years to reflect current realities
Thus, long before the flurry of demands
for the review of the formula by diverse
stakeholders especially states and local
governments, the Commission had
quietly set in motion processes for the
review of the formula.
For instance, extensive study of relevant
literature from independence to date has
been comprehensively carried by the
Commission. This includes study on
factors and proxies for the horizontal
revenue allocation formula in Nigeria;

Report on study on Assignment of
Weights to the Constitutional Functions
in the Second Schedule of the 1999
Constitution (Parts I and II)-Exclusive
and Concurrent Lists; Report of the adhoc Committee on the Review of
Existing Literature on Revenue
Allocation and Study, analysis and trend
of the Federal, States and Local
Governments Council Budget and
Expenditure profile from 2007-2010.
In its quest to bequeath a workable
revenue sharing formula to the nation,
the Commission recently sent members
of the Post Mortem Sub-Committee of
the Federation Account and Allocation
Committee on a study tour of Austria,
Brazil, Canada, Ethiopia, India, Russia
and Qatar to understudy how these
countries manage their oil and gas
resources for the benefit of their people.
Drawing from the experience of these
countries will help the commission to
adopt global best practices in fashioning
an acceptable allocation formula for the
country.
Similarly, members and staff of the
Commission had just completed indices
verification exercise, which is an
important component of the horizontal
revenue sharing formula amongst states
and amongst local government councils.
Mbam had at various fora assured

Nigerians of the Commission's
commitment to continue to play its role
as a stabilizing force promoting unity and
cohesion and ensuring fairness equity
and justice in the management of the
nation's commonwealth amongst the
different constituents of the Federation.
To journalists, Mbam charged them to
play their roles well as agents of change
and public enlightenment to join the
Commission in its advocacy and mass
mobilisation efforts to encourage
Nigerians to support the processes that
will lead to the emergence of a just and
equitable revenue formula acceptable to
all parties.
Statutorily, the commission will transmit
the revenue allocation proposal to the
President for onward transmission to the
National Assembly.
According to Section 162(2) of the 1999
Constitution the President, upon the receipt of
advice from the Revenue Mobilization
Allocation and Fiscal Commission, shall table
before the National Assembly proposals for
revenue allocation from the Federation
Account, and in determining the formula, the
National assembly shall take into account, the
allocation principles especially those of
population, equality of states, internal revenue
generation, land mass, terrain as well as
population density; provided that the principle
of derivation shall be constantly reflected in any
approved formula as being not less than thirteen
per cent of the revenue accruing to the
Federation Account directly from any natural
resources.
Boosting The Revenue Base
evenue Mobilisation
A l l o c at i o n a n d F i s c a l
Commission (RMAFC) has
continued to express
concerns over incidences of
revenue leakages through nonremittance, illegal oil bunkering, and
high incidences of smuggling as well as
unauthorised deductions.
The commission got insight into the

anomalies while performing its oversight
duties through various committees.
Chairman, Engr. Elias Mbam has been
harping on the need to plug the
loopholes at meetings with heads of
revenue generating agencies of
government.
While receiving the Customs Board led
by the Comptroller General, Alhaji
Abdullahi Dikko Inde in his office, Mbam
drew their attention to unhealthy
practices where by the Service deduct
from source, heavy amount of money as
cost of collection.
In his response, Alhaji Inde hinted the
Commission that amendment of the
Customs Act to accommodate this
Constitutional imperative was already
before the National Assembly.
Engr. Mbam also within the same period
received Board of Directors of the
N i g e r i a n N at i o n a l Pet ro l e u m
Corporation (NNPC) led by the
immediate past Group Managing
Jokes
Director Engr. Austen Oniwon where

fruitful discussion between members of
the Commission and the board were
held.
The GMD, NNPC told members of the
Commission that the NNPC faced a lot of
challenges in its operations in terms of
security, inadequate funding and
unfavorable investment climate as well as
legal and regulatory framework. He
therefore sought the support of the
Commission and understanding of
Nigerians.
It would be recalled that members of the
Commission had in October last year
embarked on oversight visit of oil
installations in the Niger Delta where
they inspected oil and gas production
facilities at Bonny, Brass and Ugep.
During the visit, all the five oil majors
namely, Total, Chevron, Agip, Shell and
Addax expressed dissatisfaction at the
security challenges, which greatly
hamper their operations especially onshore where vandals siphon crude oil
from oil platforms, pipelines and
hijacked ships which they refine using
local refineries or sell off to oil bunkerers
on the high Seas.
The issue of oil bunkering and
vandalisation of oil pipelines and
platforms by vandals and economic
saboteurs in the oil producing
communities has always been a

recurring decimal and a source of worry
to stakeholders comprising contiguous
communities, oil industry operators,
security agencies, government and the
international community. In the past,
restiveness in the Niger Delta Area had
also sparked tension in the international
oil market which depends to a large
extent on oil supplies from the volatile
region.
Having seen first-hand, the true picture of
the state of affairs in the oil industry, the
commissioners expressed disgust at the
quantum loss of revenue arising from
illegal oil bunkering and vandals and
therefore called on security agencies to
redouble their efforts in securing oil
production areas and the maritime
zones to ensure un-hindered production
both on-shore and off-shore so that
Nigeria could derive the full benefits of
its God-given resources.
Nigeria also records huge loss of revenue
through gas flaring in the Niger Delta.
Agip is the first oil company to establish a
gas-turbine power generating plant.
When members visited the plant at Agip
near Ughelli, Mbam, leader of the
delegation urged the five major oil
companies and the organised private
sector to utilise the abundant natural gas
for power generation with a view to
sustaining domestic power generation
and arresting the incidence of gas flaring.
A Nigerian man living in Sweden decided to marry a Swedish lady in order to be

legally certified via resident status, but the lady was not aware of the motive. She
thought that he really loved her.
Anyway, seeing that Nigerian men had a bad reputation in that particular part of
Sweden, our chap decided to lie to the lady. He told her he was from Uganda.
Upon marriage, the lady came home one day and informed our man that she had
just met another Swedish lady who had married a Ugandan man and they must
all have dinner together.

The naija man was somewhere perplexed, although not perceptibly, and wondered how he'd get out of this spot. He
postponed and postponed until he could do so no more.
Finally, the day came when they were to have the dinner. The other Swede came in with her Ugandan husband and
they all sat at table. Our naija chap was very quiet my own don spoil was all he could think
The two Swedish ladies, wanting their husbands to mingle, being from the same homeland, asked them to speak to
each other. Hey! It's not every day you meet people from home! They admonished.
Our Naija man being a man of great savvy decided that he would just speak Yoruba, and the guy would probably
assume he was from some part of Uganda where they spoke different language. So looking across the table he said:
Egbon Eko ni mi se? Nibo lo ti jawa? (I am a Lagosian, where do you come from)
The fellow looked up at our friend. His eyes lit up as he said: Ah bobo gan omo Eko ni mi se omo eko gang an (hey
buddy Am a Lagos child too, a real Lagos child.
Developing Natural Resources Through

Regional Cooperation
rior to the discovery of oil in the 1950s, revenues

from agriculture and solid minerals were the
economic mainstays of Nigeria. Several cities
became beehive of commercial and socio-economic
activities as a result of massive exploitation of these
resources which provided secure and profitable means of
livelihood to Nigerians and foreigners alike.
Thus, Kano became famous for its groundnut pyramid, Jos for
tin and columbite, Enugu for coal, Ilesha for gold, Maiduguri
for livestock and hide and skin etc.
Going down memory lane for instance, it could be recalled
with nostalgia, the glorious period when Nigeria accounted for
60 percent of the global supply of palm oil, 30 percent of
groundnut oil and 15 percent of global supply of cocoa.
Regrettably however, Nigeria has become a gross consumer
nation with a total food import bill between 2007 and 2010
amounting to N98 trillion or $628 billion US dollars.
It is regrettable that agriculture, which used to be the country's
economic mainstay has been allowed to degenerate. Decrying
the current abysmal status of the sector, Minister of Agriculture,
Dr. Akinwunmi Adesina laments that in 2010 alone, Nigeria
spent N635 billion on importation of wheat, N356 billion rice,
translating to an average of N1 billion daily on rice alone, N217
billion naira on sugar and with all the marine resources
available in the country comprising of rivers, lakes and creeks
in the country, Nigeria spends a whopping N97 billion on fish
imports.
The solid minerals sector also immensely contributed to the
national purse with Enugu and Jos attracting hundreds of
thousands of miners and allied businesses, providing job
opportunities, income generation and wealth creation.
By its very nature, the mining industry has the capacity for both
backward and forward value chains that can sustain wealth
creation, employment generation, poverty reduction, rural
development and production of feedstock for local industries.
The oil and gas industry may in the nearest future lose its pride
of place as the key driver of the nation's economy to the
mining sector as the Federal Government recently unveiled
plans to diversify the economic base from near absolute
reliance on oil and gas to focus on the solid mineral sector,
which presently boasts of about 38 different foreign
companies that are holding about 421 exploration licences.
It is significant to note that all the developmental strides
recorded by the defunct regional governments were made
possible because of the quantum funds derived from massive
exploitation of natural resources. Nearly all the infrastructural
development recorded in the period preceding the discovery
of oil in commercial quantities including even the
infrastructure for oil exploration were all financed from
revenue derived from agriculture and the mining industry.
The neglect of this important goldmine has led to total
News
Ibrahim Mohammed
dependence on monthly allocation from oil revenue by all the

three tiers of government in the country.
Clamour for the review of the current Revenue Allocation
Formula to reflect current realities is a function of the
ineptitude and lethargy of governments at all levels who,
bugged by the Dutch disease have refused to look inwards for
alternative revenue sources lying fallow in their backyard.
It is in light of the above that the critical intervention by the
Revenue Mobilisation Allocation and Fiscal Commission in
the revenue allocation fiasco becomes imperative. It is
gratifying to note that recent media reports indicates that the
RMAFC as an umpire has through its Chairman, Elias Mbam
called for a cease-fire; advising stakeholders to sheathe their
swords and allow the Commission to do its work as provided
for in the Constitution.
According to Mbam, the continued over politicisation of the
issue which is purely a constitutional matter was capable of
overheating the polity, hence the need for caution. It is
gratifying to note that the Revenue Mobilisation Allocation and
Fiscal Commission which is at the centre of it all as umpire and
impartial arbiter continues to play its stabilizing role in
devising strategies and techniques for the review of the
revenue allocation formula, which the constitution stipulates
that it should carry out every five years to reflect prevailing
realities.
Worried by the continued neglect of the non-oil sector and
constant agitation over revenue sharing, the Commission has
also lately been actively engaged in advocacy and mass
mobilisation campaign in the states to sensitise governments
at all levels including the private sector to embrace economic
diversification to boost their revenue base and reduce the over
dependence on oil resources.
Use TFT to Fund Free Education, RMAFC Urges Governments
he Revenue Mobilisation Allocation and Fiscal

Commission (RMAFC) has advocated the
introduction of a Telecommunication Federation
Tax (TFT) to provide free education for Nigerians.
RMAFC Chairman, Engr. Elias Mbam made the call at an

interactive session with Chairman and management of the
Federal Inland Revenue Service (FIRS) in Abuja.
Mbam, who led other commissioners on an oversight visit to

FIRS explained that spectrum utilisation by GSM users for
phone calls and internet data transfer is a national wealth,
which could provide additional funding windows for the
provision of basic infrastructure and services by governments
at all levels.
He observed that in addition to other internet data transfers,
GSM subscribers number over 50 million in the country.
The RMAFC Boss said if N20 is charged per subscriber per day,
over N1 billion will be realised therefore giving over N365
billion enough to provide access to free education in all public
schools.
While explaining that the initiative will provide all Nigerians
the opportunity to go to school, Mbam added the proposed
tax is targeted at high income earners and business executives
who spend quite a fortune on business calls and data transfer
while the common man pays little or nothing.
To actualise this, the Chairman canvassed an amendment of all
relevant laws to fast track the take-off of the proposal, which he
advised, should be administered through a board of trustees.
Industry experts have warned that hydrocarbon resources are

exhaustible and non-renewable. It has thus become necessary
for Nigeria to embrace diversification as a means of funding
public expenditure in form of provision of infrastructure and
basic services.
Given the lean resources of states and local governments and

the looming bankruptcy, the rapid development of natural
resources like agriculture, tourism and solid minerals require
massive infusion of funds, which could only be leveraged
through a tripartite partnership between the three tiers of
government on one part and the private sector and host
communities on the other.
Mbam received the award from Mr.

Victor Orji, President of the Federation of
Public Service Games (FEPSGA) at a brief
ceremony in his office. The ceremony
was attended by members, management
and staff of the Commission and national
executive members of the Sports club.
Natural resources are evenly distributed in Nigeria with

regional comparative advantage. It is therefore, expedient for
states and local governments to exploit their natural resources
with a view to reviving regional economies and boosting the
Federation Account with additional revenue. This will further
reduce over dependence on oil revenue and strengthen
Nigeria's fiscal federalism.
Presenting the award, Orji explained that

the Chairman was considered worthy
recipient of the award in recognition of
his keen interest and immense
contribution to sports development in
the Commission.
The RMAFC boss had earlier commended FRIS for

introducing reforms aimed at enhancing revenue collection
and tax administration in the country through the new
Personal Income Tax targeted at higher income earners and
the informal sector, which hitherto were not paying
appropriate taxes.
The Chairman also called for further collaboration between
FIRS and RMAFC in the area of capacity building, study tours to
tax-driven economies and enforcement activities to enable
members, management and staff of the commission to further
understand the peculiarities and global best practices in tax
collection and administration.
In her response, former FIRS Executive Chairman, Mrs. Ifueko
Omuigi observed that lack of synergy amongst revenue
generating agencies, ministries, departments and agencies at
all levels of government was militating against effective tax
collection and administration in the country.
To bridge the gap, she called for more collaboration amongst
stakeholders to raise the bar in tax collection and
administration so that adequate revenue could be realised for
governments at all levels to continue to address Nigeria's
diverse development challenges.
Omuigi stressed the need for greater collaboration between
the service and RMAFC in information sharing on the activities
of revenue generating agencies adding that her agency also
stands to benefit immensely from the Commission's wider
network amongst the three tiers of government.
Mbam Honoured As RMAFC Pillar of Sports
hairman, Revenue Mobilisation

Allocation and Fiscal
Commission (RMAFC), Engr.
Elias Mbam has received an
honours award as the Pillar of Sports and
Grand Patron of the RMAFC sports club.
In his acceptance speech, Mbam said the
award will serve as a morale booster for

him to continue to support sporting
activities not only in the Commission
but the country at large.
of sports but an active participant who

believes that sports help in the mental
and physical development of the human
person and advised everybody to
participate in sporting activity.
He explained that he was not only a lover
Stress
Health Corner
Management
tress can be defined as any

physical, chemical or
emotional factor which
causes bodily or mental
unrest, that maybe a factor in
triggering diseases.
Who Is Susceptible To Stress?

Stress comes in all forms and affects
people of all ages. Sometimes people do
not need stressful job to experience
workplace stress. The degree of stress in
By Mrs. Binta Mohammed,

RMAFC Staff Clinic
high level of stress.
Body Areas Affected By Stress

Brain and nerves; muscles and joints;
heart; stomach; pancreas; intestines, and
reproductive system are the major areas
Physical or chemical factors

that can cause stress include
trauma, infection, toxins,
illness and injury of any sort.
Emotional causes of stress
and tension are numerous
and diverse in individual.
Many people associate the
term stress with physical
stress but scientists and
physicians use this term to
denote any force that impairs
the stability and balance of
bodily functions.
Besides self-generated stress,
there are physical and timerelated aspects of stress such
as working long hours,
working different shifts, being
awakened often from sleep
and working to a point of physical
exhaustion on a regular basis. Stresses
can also occur simply from having a busy
schedule.
Your body responds to stress by secreting
the stress hormones (adrenaline and
artiesteroids). These hormones help the
body respond to situations of extreme
need. But when they are secreted in high
doses over long periods of time, they
wear down the body and emotions of an
individual. People under stress often
exhibit symptoms of emotional and
personality changes such as increased
anxiety, irritability and even depression.
There may be time when stress cannot
be eliminated completely but can be
reduced to the minimum level.
Health Corner
Boost Your Brain Power!
s your mind so cluttered that some

days you can't even remember
your own phone number?
Don't despair. Here are some tips

and techniques to sharpen your
memory, enhance your concentration
and help you think more clearly.
Your brain stores more information than

any computer ever could and would be
amazed at its capabilities. Occasionally
though, you may get a feeling that it
simply is not working properly. May be
you feel your memory is beginning to let
you down; or perhaps you feel less able
to cope with everyday stresses and
strains. Good circulation is critical for
clear thinking and all the other functions
this hard working organ performs.
Exercise is Vital
Physical and mental exercise are
important. Brains cells are like musclesuse them or lose them. No matter what
your passion is-working, swimming,
cycling or something gentler like yoga,
do it! Physical exercise pumps more
blood to the brain and reduce level of
stress hormones, which generate free
radicals that damage the brain cells.
our lives is highly dependent upon

individual factors such as our state of
physical health, the quality of our
interpersonal relationship, the level of
our commitments and the responsibility
we shoulder etc.
However, certain factors can enhance our
susceptibility to stress or act to reduce its
severity. People with strong social
support networks (family, friends,
religions, organisations or other social
groups) report less stress and overall
improved mental health than those who
do not. People who are poorly
nourished, who get inadequate sleep or
who are physically unwell also have
reduced capabilities to handle the
pressures of everyday life, may also report
affected by stress.
Stress Management Facts
While elimination of stress is unrealistic,
management of stress is attainable.
Techniques Involved In Stress
Management
Relaxation, time management skills,
counselling or group therapy, exercise
and maintaining a healthy life style,
audio tapes, watching films and, listening
to soothing music are some of the ways
that can be deployed to manage stress.
People with spiritual roots often find that
prayer or meditation is an excellent way
to reduce stress. Exercise can also reduce
stress by relaxing tense muscles.
Stimulate Your Memory

Use it! Learn new skills. If you work in
office, learn to dance. If you are in sales,
learn to play an instrument and if you are
a computer specialist, learn to paint. This
will help to stimulate your brain's neural
circuit to grow. Stimulate your brain
daily. Memorise addresses and phone
numbers, do crossword puzzles, play
card, question things. Read your Bible
when depressed. Listen to Quran
recitation according to those who know
it well. If you listen to the right kind of
recitation or you recite, it will activate
your brain structure in your temporal
lobes, which is where the memory is
housed.
Sleep
To have a good memory, the brain needs
to have enough sleep. While sleeping,
the brain disconnects from the senses
and proceeds to revising and storing
memory.
Memory Tricks
Think of a place where you pass several
times a day like doorway. Use it as your
mental storehouse. If for example you
wanted to remember to water a plant and
return a library book, imagine a library
book nailed to the wooden door at head
height, so you can see the title as you
pass. You allow a plant to grow at the top
of the frame; water drips from the root
onto your head each time you pass a
doorway; make point of remembering
this image so you don't physically have
to pass your storehouse to recall things;
return to it from time to time in your
imagination.
Steer Clear Of
Nicotine, caffeine and drugs (because
they decrease blood flow to the brain)
and refine surgary carbohydrates found
in sweets, cake and biscuits. This provides
an initial surge of energy followed by a
feeling of lethargy because concentrated
sugar causes a surge in blood level
followed by a slump as the body
struggles to balance things out.
Feed Your Brain
Eating a good balance diet is essential.
Keep brain arteries clear by eating low fat
diet with plenty of anti-oxidant rich
fruits and vegetables, plus whole grain
and cereal to provide a steady supply of
glucose. Oily fish is a rich dietary source
of essential fatty acids as well as an aid to
iron absorption, vitamin and oil. It
contains vitamin E. A United States
research shows a hefty daily dose may
delay the development of Alzheimer
disease.
Apricots, carrot and sweet potatoes are all
rich in brain boost. Beta carotene, Red
wine (don't overdo it though!) is believed
to reduce the risk of dementia.
Let The Sun Shine in
Colour therapists maintain the colour
yellow is excellent for stimulating the
mind. It may help correct forgetfulness
and helps give clarity and precision of
thought.
Water
Helps maintain the working of the
memory system especially in older
persons. Some researchers say that lack of
water in the body has an intimate effect
on the memory. Dehydration can
generate confusion and other thought
difficulties.
Herbs Can Help
Chinese herbalists have used the leaves of
the gingko biloba tree for 5,000 years to
increase blood flow to the brain. Ginkgo
leaves dilate blood vessels, helping blood
and oxygen to flow to the brain.
Rosemary is another herb to add to your
cooking as it is effective in increasing
blood flow to the brain, improving
memory and concentration.
Thyme is particularly effective as an antiageing remedy, while lemon balm,
recommended if you have stressful event
looming, is believe to be an effective
tonic for the nervous system.
Meditation
Some swear by the power of daily
meditation to maintain a healthy
memory. Creating an empty space leaves
room for more important information.
One suggested exercise to relax the mind
and improve concentration is to sit
comfortably though upright on a chair
with your back supported. Close your
eyes. Relax. Focus and be aware of your
abdomen rising and falling as you
breathe. If your mind wanders, just return
your attention to your breathing for 15
minutes a day.
Henry Ford said: whether you think you
can do something, or whether you think
you can't, you are absolutely right. This
self-fulfilling prophecy can be used to
help improve memory by banishing
negative thoughts. Instead of worrying
too much when your memory fails you,
adopt the attitude, I can't recall that fact
right now but it will come to me very
soon.
Culled from
www.silvertraveladvisor.com.
Events Picture
Events Picture
Advocacy Workshop on Economic Diversification in

North-Central Zone, held in Minna, Niger State
Advocacy Workshop on Economic Diversification in

South-South Zone, held in Asaba, Delta State
Events Picture
Events Picture
Advocacy Workshop on Economic diversification in

South-West Zone, held in Abeokuta, Ogun State
Courtesy visit by Dr. Kayode Fayemi

Executive Governor, Ekiti State
was not possible, there are some of the variables that were not
within the control of the Commission and so we were not able
to keep to this date, but we are determined to ensure that we
provide to Nigerians a New Revenue Formula that is fair, just
and equitable and am sure it will be acceptable to Nigerians.
Star Interview
What is the progress so far?

Well, we did not stop just because we did not actualize the
promise. A lot of progress has been made. Presently, we have
concluded action on the review of the literature; we were able
to look at what has been done in the Revenue Allocation
Formula even pre-independence. What have been the
challenges?
RMAFC,
a permanent fixture in our national life
Ibrahim Mohammed, Mercy Ozele, Hauwa Mohammed
he editorial team of Fiscal Monitor spoke with Chairman, Revenue Mobilisation Allocation
and Fiscal Commission, Engr. Elias Mbam. Enjoy the reading
Sir, You are welcome to an interactive session with the

editorial team of Fiscal Monitor, a publication of the
Commission. We are here to interview you on sundry issues
pertaining to the mandate of the Commission. In your
maiden address to a management retreat in Uyo, Akwa Ibom
State, you talked about the need for the Commission to be
engaged in efforts to mobilize more revenue for Nigeria, by
implication enlarging the national cake. Looking back now,
what is your assessment of the journey so far?
Thank you very much. When I assumed duty here, I noticed
that the emphasis was more on allocation and not on
mobilization. I made it my cardinal programme that we
should be more concerned with increasing the size of the
national cake rather than dissipating energy on its sharing. In
line with this objective therefore, we constituted a standing
committee on diversification. The primary responsibility of
this committee was to look at the ways and means by which
we can increase our revenue base outside oil and gas.
In doing this, we found out that a lot of areas lie unexploited,
we found out that agriculture has a great potential for
development. Agriculture has a potential for providing not just
more revenue, but food security, employment and socio
economic development in our country. It was also discovered
that solid minerals abound in every part of the country with
several states blessed with either one mineral resource or the
other. In fact, there is no area that does not have one form of
mineral or the other lying unexploited.
We also found that manufacturing was dead, and it requires to
be re-activated, needs to function at optimal capacity. The
tourism sector is also another gold mine that remains
untapped. All these are areas we found that required to be
developed so as to increase our revenue base.
Accordingly, we decided that the best way is to sensitize our
people. We feel that calling them to Abuja alone was not likely
to yield the desired result and so we decentralized it to every
zone where we look at what resources are available in each
zone, what are produced locally and we try to draw the
attention of those in Government and the organized private
sector on the need to exploit untapped resources in their

domain.
So far, we have covered the North-Central North-West, SouthSouth and the South West and in due course, we intend to take
the campaign to the remaining geo-political zones. The solid
minerals sector has started contributing to the Federation
Account. We have also made progress in promoting
accountability and transparency by making sure that all
revenue accruing to the Federation Account is remitted timely
and accurately without being tampered with and then equally,
only the appropriate beneficiaries tap from the Federation
Account.
That brings us to the issue of Revenue Generating Agencies
paying courtesy call on the Commission. Can you give us a
rundown of the discussion you have had with them?
Well I am happy that Sister Agencies understand the mandate
of the commission. The commission was not established to
witch-hunt anybody or look for fault but to partner to work
together with the other Agencies of Government to realize the
objectives of Government. In this direction, many of these
agencies have paid courtesy call as you observed and in totality,
our agreement is to work together, that we should collaborate
and ensure that government revenues are accounted for, to
ensure all accruable revenues are tapped and remitted into the
Federation Account. And we should share information and
experiences on how to improve the revenue generation of this
country for accountability and that is already yielding result.
Talking about the contentious issue of Revenue Allocation
Formula, you will remember that towards the end of 2011,
you promised Nigerians that a brand new Revenue Formula
will be in place and most Nigerians thought this Revenue
Formula is like a quick fix issue, can you give us progress
report on the processes leading to the new formula?
Yes thank you my brother. The intention of the Commission
was actually to ensure that a New Revenue Formula was
provided in the first quarter of this year. Unfortunately, due to
circumstances beyond the control of the Commission, this
Why has it posed so many challenges to our national life? That,

we have concluded. We have also visited similar Federations
including India, Brazil, Malaysia, Spain and few others, with the
aim of understudying what they are doing in their fiscal
management and sharing with them their experiences and
then adopting areas that will be beneficial to our own system.
That we have done and the reports have been compiled.
We have also carried out some studies in some fiscal matters
that relate to the review of the revenue formula. In addition to
this, the Commission has toured the 774 Local Government
Areas, the 36 States and the FCT with the aim of verifying the
data that will assist in determining the horizontal sharing of
the revenue accruing to States and Local Governments.
Right now the data is being processed and analyzed and in the
near future, it will be ready. We are making steady progress and
I wish to plead with Nigerians to please bear with us, give us
some time and we will come out with a result that will be fair
to all.
Now talking about the legal framework, there is the ongoing constitutional amendments and I know that there are
some issues regarding the mandate of the Commission like
State and Local Government joint accounts that the
Commission would like to be addressed. Did the Commission
make any formal inputs into the proposed amendments to
the National Assembly to look into?
At our inauguration, the first thing I observed was that there
were legal issues that posed challenges to the operation of the
Commission. One of them was that the Commission does not
have constitutional powers to enforce the law. For instance, if a
State Government decided not to remit what is due to the
Local Government, the best we can do is to write and we
thought there should be a law empowering us to be able to
stop such withholding of funds. Without the ability to apply
sanctions, the Commission is like a toothless bulldog. If an
Agency does not remit money to the Federation Account what
do we do? So, it is necessary for the Commission to be given
the power to impose these rules.
We are therefore in support of calls that local governments
should be paid directly from the Federation Account instead of
passing it through State and Local Government Joint Account
because reports show that there is tendency of abuse in some
states. In order to avoid a possible abuse, that aspect of the
Constitution needs to be amended so that revenue due to
Local Governments should be remitted directly to the Local
Government and not passing through State and Local
Government Joint Account.
Secondly, the funding of the Commission depends only on
appropriation. We feel that the Constitution provides for cost
of collections, and if we will ensure that we maximize

revenues available and remitted to the Federation Account we
need to be properly funded, we need to be funded from that
provision, we need to employ appropriate staff and pay them
appropriately, give them the incentive that will make them to
work. Those are part of the things that we want to be amended.
In the past, you also advocated the need for the Office of the
Accountant General of the Federation to be separated from
the Office of the Accountant General of the Federal
Government, can you expatiate on this?
Yes. Right now what obtains is that the Accountant General of
the Federal Government is both the Accountant General of the
Federal Government and the Accountant General for the
Federation. This has raised a lot of concern to States and Local
Governments. They rightly observe that there is likelihood for
the Accountant General, as an employee of one of the tiers of
Government not to be fair to them, so there is no confidence
from the other parties.
Furthermore, there is also likelihood of too much
complexities in management of the finances, so we are of the
view that the office of the Accountant General of the
Federation should be separated from the Accountant General
of the Federal Government, whereby the former will only be
concerned with the revenue due to the Federation, which
gives more room for accountability, simplicity and for record
keeping and of course, that will restore confidence to all tiers of
government.
Now, it is almost one and half years since you assumed office
as chairman of the Commission. In specific terms, you just
talk about the challenges, can you also talk about the
achievements you recorded in the last one and half years as
chairman of the Commission?
I have been able to bring together other Agencies of
Government to collaborate and ensure that more revenue that
did not exist before is mobilized for the national cake to be
enlarged. For instance, solid minerals have never contributed
to the Federation Account but now we have close to two
billion naira standing in the account of solid mineral ready for
sharing to all the tiers of Government including 13 percent
derivation to solid minerals producing States.
We have also concluded action on verification of data for
horizontal sharing which was last done in 2006. In terms of
administration, when I came here I think we had not more
than three desk top computers, but I can tell you now that
basically all desk officers have laptops and desk tops. The
offices have been furnished and now our zonal offices are
functioning with working tools, monitoring vehicles are
available, all hanging promotions have been concluded and all
outstanding allowances are being paid accordingly.
When I came I ensured that the catalogue of audit that was not
done was done. Right now we are up to date in auditing so I
think I want to say that we are moving. We also observe that we
have carried out extensive training spanning through all levels
like junior staff, intermediate staff and senior staff for both local
and international because it is our belief that the only way to
improve staff performance is through constant training and
retraining. We have also concluded a road map for the
Commission. In fact, in the not too distant future, our road
map will be out and will spell clearly the direction of our
programmes. So we are moving.
Thank you for your time.
Mbam Will Fulfil his Promises

- NCSU Chairman
In this interview with Bashir Bichi and Mercy Ozele, Comrade Usman Degri,
Chairman of RMAFC Chapter of Nigerian Civil Service Union speaks on issues concerning
the welfare of staff in the last one and half years.
By Bashir Birchi/Mercy Ozele
ay we know you
sir?
My name is
Comrade Isa
Usman Degri,
Chairman Nigeria Civil Service
Union RMAFC Chapter here in
Abuja.
We will like to get your views

on the performance of the
management under the
leadership of Engr. Elias Mbam
in the last two years that he has
been in the saddle?
When Engr. Elias Mbam assumed duty as the Chairman of
Revenue Mobilisation Allocation and Fiscal Commission I was
then an active member of the Union but not the Chairman. In
the course of time, he has shown care and concern for the staff
of the Commission. In fact, he has supported the union in
various ways.
In terms of the issue of welfare, I will not speak for him, but I
know where he was constrained. It has to do with finances,
which is a general problem not only in RMAFC but
everywhere when something has to do with finances, but in all
honesty, he has demonstrated very good ability of improving
the welfare of the staff to move the Commission forward.
What are the areas specifically?
For the areas he has been able to reform, let me start with the
issue of working environment. We have the phase II office in
the complex. We all know it was built but yet to be furnished,
he made sure he utilised the capital funds available to furnish
the phase II and that provided more office accommodation for
staff.
We are having money under capital vote again which were
utilised to purchase operational vehicles and additional staff
buses for the Commission. In fact, twice he bought some
when he first came and bought another set in December last
year. Some are being used here at the headquarters and some
were sent to deserving zonal and state offices.
However, we unionists are always

like Oliver Twists. We still want
more and more. The more you
give us the more we ask because
once we are thinking the system is
working well, we try to get all we
needed. We always bother him
with lots of requests no matter the
situation and he never shies away.
What about training?
In the area of training, in fact, I can
tell you authoritatively that since I
joined the Commission in 2002,
2011 was the year staff really went on training en masse, both
locally and internationally and, if you check the record you
can find this to be true.
Both senior and management teams have gone on foreign
training while the junior ones got their trainings domestically.
In fact, for the lower cadre, the management was able to
organise a training session for them in batches, which almost
every staff attended. Those who did not benefit in 2011 were
also given opportunity last year and this year also we are
expecting more people will benefit. It is an incontrovertible
fact that there can never be an effective result-oriented
workforce without training, we really appreciate that.
You just talked about the achievements recorded by the
administration of Engr. Elias Mbam. Now what would you
say are the challenges facing the union?
As a union we are having challenges. Currently, at the local
level, we do not have an office here that serves as our Secretariat
and we don't have laptops to work with at the Secretariat as the
ones provided the staff are strictly for office work. Whenever
our colleagues pay us visit to discuss certain labour issues, we
do it openly in our offices. Also, we are not able to produce
documents because of dearth of working materials. Likewise if
we want to hold congress meetings, we can't shout Aluta
within the complex as this will disturb our colleagues in their
offices.
There is also the issue of vehicle. I remember we used to have
one before the burdening of government old vehicle caught
up with it and since then, we have not been able to have a
replacement, but we do hope that in the not too distant future,
we are going to have another one.
In terms of working tools, he was able to procure working

materials like laptops and desk top computers, printers, and
photocopiers to ease work of the staff. Before, there was a lot of
complaint in that aspect, which used to cause delay because of
lack of working materials. Staff are very happy about that
because this helps in making their work a lot faster and easier.
There was the issue of housing also, which we know the

Chairman has been making efforts by way of facilitation.
Then we are still struggling with the issue of light, which I

believe he is doing his best, as everybody in this country knows
the state of affairs at PHCN, but apparently he is making things
work through supply of diesel to the two generating sets that
service the Commission.
Is there any other issue you want to raise?

All the issues have been adequately covered and like I told you
we have confidence in the ability of the Chairman to deliver
on his promises. For now our fingers are crossed hoping for
the better. I can say there is no cause for alarm.
Access To Information is
A Fundamental Right
Between June 18 and 19, 2011, a national Summit on the Freedom of Information Act held at the NICON Luxury Hotel,
Abuja. Fiscal Monitor here brings you the communiqu.
he summit attended by 164

participants from various
sectors and interest groups,
i n c l u d i n g t h e N at i o n a l
Assembly, the Presidency, the
RMAFC, institutions and agencies of the
executive at federal, state and local
government levels; the Judiciary, anticorruption agencies, regulatory and
other oversight bodies; civil society, the
media, the private sector, public
c o r p o r at i o n s a n d s t at e - ow n e d
enterprises, the general public and other
interest groups was organised by Media
Rights Agenda (MRA) and sponsored by
Pact Nigeria.
Objectives
The stated objectives of the Summit were
to: engage in broad-based consultations
a m o n g r e p r e s e n t at i v e s of ke y
stakeholders in the public sector,
p a rt i c u l a r l y t h e E xe c u t i ve , t h e
Legislature and the Judiciary; civil
society, the media, the private sector and
other interest groups with outcomes that
should feed into a variety of ongoing
processes to develop strategies and
action plans for effective
implementation of the FOI Act;
Create a platform for an intensive
appraisal of the FOI Act, including
identifying its strengths and weaknesses
and thereby ensuring that participants,
especially in the public sector, have a
better understanding of its purpose,
objectives and potentials while also
agreeing on strategies for overcoming its
inadequacies and;
Map out wide-ranging strategies for
ensuring public awareness of the Act;
better knowledge of its provisions by
public sector actors and ordinary citizens
as well as for the overall effective
implementation of the Act, including by
identifying the roles which various
stakeholders can play in these different
processes and aspects.
The Summit was declared open by the
Minister of Information, Mr. Labaran
Maku, while the Attorney-General of the
Federation and Minister of Justice, Mr.
Mohammed Bello Adoke (SAN),

represented by his Special Adviser,
Professor Deji Adekunle, delivered the
keynote address.
The opening session was chaired by
Bishop Matthew Hassan Kukah, the
Catholic Bishop of the Sokoto Diocese.
The Summit was addressed, among
others, by Ekiti State Governor, Dr.
Kayode Fayemi, represented by his
Attorney-General, Mr. Dayo Adelaja; Mr.
Mobolaji Adebiyi, Special Assistant
(Media) to President Goodluck Jonathan;
Mr. Ehi E. Okoyomon, Managing
Director and CEO of the Nigerian
Security Printing and Minting Company
Plc.; Dr. Sam Amadi, Chairman of the
N i g e r i a n E l e ct r i c i t y R e g u l ato r y
Commission; Hon. Matthew Omegara,
the Chair of the House of Representatives
Committee on the Freedom of
Information Act.
Other speakers were Hon. Abike DabiriE rewa , C h a i r of t h e H o u s e of
Representatives Committee on the
Diaspora; Mrs. Ayo Obe, former President
of the Civil Liberties Organisation (CLO);
Dr. Bassey I. Etim-Ikang, Director of
Research, Planning and Statistics in the
Office of the Head of the Civil Service of
t h e Fe d e r at i o n ; H o n . Ke h i n d e
Bamigbetan, Chairman of Ejigbo Local
Government Council of Lagos State; and
Mr. Gbenga Sesan, ICT expert and Project
Director of Paradigm Initiative Nigeria
(PIN).
Conclusions and Observations
The right of access to information held
by governments and government bodies
at all levels is a fundamental right which
every Nigerian is entitled to enjoy.
The Summit commends the 6th National
Assembly for finally passing the
Freedom of Information Bill in 2011 in
recognition of this right. It also
c o m m e n d s P re s i d e n t G o o d l u c k
Jonathan for his bold and courageous
move in signing the Bill into Law.
The Summit noted and fully endorsed
President Jonathan's statement of firm

belief upon signing the FOI Bill into law
that the Act would strengthen all
i n st i t u t i o n s t o e n s u r e g r e at e r
t r a n s p a r e n c y, p r o b i t y a n d
accountability.
While the Summit agreed that states have
a right to pass their own Freedom of
I n fo r m a t i o n l a w s , i t h ow e v e r
commended those state governments
that have indicated their willingness to
be bound by the Federal Freedom of
Information Act as well as the Ekiti State
Government for speedily passing its own
Freedom of Information Law.
The Summit also commended those
local government councils that have
indicated their readiness to be bound by
the Federal Freedom of Information Act
and were taking steps to implement the
law with regards to their records and
information.
The Summit however, acknowledged the
challenges which confront local
governments in the implementation of
the Act, particularly those arising from
inadequate resources and capacity.
It welcomed efforts so far made by the
Attorney-General of the Federation and
Minister of Justice to provide guidance to
all ministries, departments and agencies
of the Federal Government on their
duties and responsibilities under the FOI
Act as well as how to implement the Law.
The Summit however notes that his
i m p l e m e n t at i o n a n d r e p o r t i n g
guidelines need to be disseminated
much more widely to public institutions
and other stakeholders than was
presently the case.
The Summit endorsed the advice of the
Attorney-General of the Federation to
public institutions to use modern
technology to inform citizens about
activities of government and the
information it holds.
In particular, Summit participants
aligned themselves with the injunction
of the Attorney-General that agencies

should readily and systematically post
information online in advance of any
public request.
Participants also acknowledged that the
a b s e n c e of a n i n d e p e n d e n t
administrative oversight body or agency
to superintend over the implementation
of the Act, undertake or coordinate
public enlightenment activities, and
receive complaints of wrongful denial of
access to information, was a major
weakness of the Act as there is a risk that
the courts could become swamped with
FOI cases since litigation is the only
option open to citizens denied access to
information.
In addition, the Summit agreed with the
broad outlines of the Roadmap
developed by the Federal Government
for the implementation of the FOI Act
and called for wide dissemination of the
detailed roadmap and its urgent
implementation.
It equally expressed concern about the
low level of public awareness about the
FOI Act, its provisions and how to use it
as it was clear that most of the prime
beneficiaries of the Freedom of
Information Act were yet to fully
appreciate the enormous benefits that
they can derive from more active
application of the law.
Recommendations
Participants therefore recommended
that: the right of access to information
being a fundamental right, the Summit
calls on all states which are yet to
implement the Freedom of Information
Act 2011, including those states that have
declared their intention to enact their
own Laws, to do so in the earliest time
possible as their continued delay in
implementing the Act or enacting their
own Laws amounts to violation of the
rights of Nigerians, particularly those
residents in such states, to access
information held by the respective states;
Various stakeholder groups, particularly
the media, civil society and government
public enlightenment agencies, should
undertake public enlightenment
activities to ensure better public
understanding of the provisions of the
Act a n d h ow to u s e i t . S u c h
communication endeavours should be
sustained over time to achieve the
desired impact;
In order to lessen the number of cases
going to court and its attendant burden

on information seekers, public
institution defending such cases and the
courts, ongoing efforts to amend the
Federal Public Service Rules should
include administrative sanctions for
unjustified denials or delays of requests
for information under the FOI Act. This
will provide an alternative to litigation
which will be less cumbersome, less
time-consuming and less costly for all
parties concerned and that;
Public officers should be re-oriented on
the superiority of the FOI Act to the
Official Secrets Act. In this regard, we
wish to commend to all public
institutions the views of the AttorneyGeneral of the Federation and Minister of
Justice, Mr. Mohammed Bello Adoke
(SAN) that any inconsistency between
the FOIA and the Official Secrets Act
should ordinarily be resolved in favour of
the Freedom of Information Act in
accordance with the well-known
cannon of statutory interpretation that a
latter statute prevails where there is
inconsistency between two statutes. This
is put beyond controversy by virtue of
Sections 1, 27 and 28 of the Freedom of
Information Act.
It also recommended that the public
service should embark on a reclassification of records under the
Official Secrets Act so as to reduce
c o n f l i ct w i t h t h e Fre e d o m of
Information Act, as advised by the
Attorney-General of the Federation and
Minister of Justice;
Public institutions should create or
strengthen their internal structures for
managing information and responding
to information requests;
Deliberate measures should be taken to
ensure consultation and networking
among various stakeholders, including
governments and government bodies,
civil society, the media and members of
the public that will enhance the effective
implementation of the Act and that;
In order to ensure the effective
implementation of the Freedom of
Information Act, budgetary allocations
should be made to support the
implementation of the Act by various
public institutions. The Summit
therefore calls upon the National
Assembly to ensure that the necessary
budgetary approvals are given for the
year 2013 and beyond to advance FOI
implementation.
The Summit then urged all public

institutions that were yet to fulfill their
proactive disclosure obligations under
the Act to do so without further delay
and urges the Attorney-General of the
Federation to take measures to ensure
compliance with this and other duties
and obligations of public institutions
under the Act.
In addition, public institutions were
advised to explore the use of various ICT
and social media tools in engaging the
FOI Act, particularly in the area of
proactive disclosures, including twitter,
Facebook, mobile phone apps, blogs,
multimedia tools, among others. Public
institutions should also use electronic
records management systems to
enhance the implementation of the Act.
F i n a l l y, i n o r d e r t o r e d u c e
implementation costs and unnecessary
delays, public institutions were
reminded that they do not need to create
additional websites or portals for FOI
implementation. Existing websites or
portals can be made more dynamic to
take FOI issues on board.
Jokes
A beautiful and well trained girl
informed her dad that her boyfriend
would like to come and see him to ask for
her hand in marriage. On the appointed
day, the guy arrived chewing gum. The
following conversation ensued:
Dad: Is that not a sign of disrespect?
Suitor: No daddy! It's just that I drank a bit
of alcohol.
Dad: What! So you even drink alcohol?
Suitor: Yes, when I go clubbing.
Dad: So you club also. For how long have
you been clubbing?
Suitor: Since I came out of prison he
replied quietly!
Dad: So you were once in prison? Why
were you in prison?
Suitor: Since I killed someone.
Dad: Why did you kill someone?
Suitor: Because he did not want me to
marry his daughter!
Dad: Son you have my blessings.

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Revenue Mobilization Allocation and Fiscal Commission

7thFloor, Room 744 Fed. Sec.,

Old Legacy House Zaria Road,

1st Floor, Fed. Sec., Kano Road,

Emir Haruna Rasheed Road, Old

No.5 Yakubu Gowon Way, Off

1st Floor, Room 179, Fed.

Nuru Jibril Housing Estate

5th Floor, (Glass House), Fed.

Opp.ADP Alagbaka Obafemi

45,Murtala Muhammed Highway

Saidu Mai Gasma

Patrick Peter Etong

Vol. 1, No. 1, January 2013

A quarterly publication of the Revenue Mobilization Allocation and Fiscal Commission

The imperatives of Economic Diversification

Diversification: Solid Minerals

Fiscal Efficiency For Enhanced

he coming of the Fiscal

The Commission under the leadership of its chairman, Engr. Elias

n fulfilment of his promise to

It is instructive to note that with the consolidation of democratic

You are welcome on board.

It would be recalled that in his maiden

Commission for the development of

infrastructure and human capital

Fiscal Monitor / Vol. 1, No. 1, January - March 2013 / Page 4

agricultural value chain.

conjunction with the Federal

The CBN Governor had at a forum

The South-East and South-South,

Fiscal Monitor / Vol. 1, No. 1, January - March 2013 / Page 5

However, with the discovery of oil in

Accountant-General of the Federation

Speaking on the new trend, Minister

total landmass of 923,000 square

ground with improved infrastructure,

Fiscal Monitor / Vol. 1, No. 1, January - March 2013 / Page 6

Diversification: Farming Our Future

financial obligations owing to the delay

He emphasised that although Nigeria is

The action plan according to the Minister

Nigeria appears to have experienced a

He declared that through the ATAP,

Adesina listed such advantageous areas as

Fiscal Efficiency For

he on-going global financial

It is believed that the agricultural sector

Fiscal Monitor / Vol. 1, No. 1, January - March 2013 / Page 7

Other notable agricultural experts have

internally generated revenue. This in turn

current Revenue Allocation Formula in

It is very vital to note that effective

environment for investment by the

Fiscal Monitor / Vol. 1, No. 1, January - March 2013 / Page 8

most of the headquarters of the

customary and burial ground permit

Besides, in farming communities Local

The principal idea behind IGR is to

Governments could also place more

To achieve this, they must first encourage

There is an urgent need also to put in

Solid Minerals Development

efore the discovery of oil in