According to the RMAFC, the agencies, including the Corporate Affairs Commission, Federal Airports Authority of Nigeria, Federal Road Safety Commission, Raw Materials Research and Development Council, Bureau of Public Enterprises, Nigerian Postal Service and Nigerian Communications Commission were established for the federation and not just for the Federal Government.
Any law that permits any of the agencies to keep funds that it generates or pay into any account other than the Federation Account for the use of the three tiers of government violates the 1999 Constitution, the RMAFC stated in a letter to the National Assembly.
Such laws should be amended to enable the agencies to pay into the rightful account, the RMAFC said in the letter, adding that it had also met with President Muhammadu Buhari to discuss the need to amend the laws to allow the agencies to remit their revenues to the Federation Account alone.
An official of the agency, who spoke to our correspondent on condition of anonymity, said the Treasury Single Account being implemented by the present administration was nothing but another name for the Consolidated Revenue Fund belonging to the Federal Government and had nothing to do with the Federation Account belonging to the three tiers of government.
The RMAFC stated, “The commission would advise that the laws establishing most of the revenue-generating agencies should be reviewed. These agencies are owned by the federation. They generate and collect huge sums, which they retain and utilise, and subsequently only remit their operating surpluses to the Consolidated Revenue Fund of the Federal Government as allowed by the various Acts establishing them and the Financial Regulation Act in conspicuous violation of constitutional provisions, specifically Sections 1(3) and 162 (18 & 10).
“The constitution stipulates that all revenues shall be remitted into the Federation Account with few exceptions like the Personal Income Tax of members of the Armed Forces and the Police, and also the residents of the Federal Capital Territory.
“Moreover, these agencies were mostly set up during the military administrations and were financed from the common pool of the federation. They also operate and administer assets such as land, seas, airways etc. belonging to the federation in addition to having operational presence across several states of the country.
“These reasons are enough to justify that these agencies should remit all their revenues to the Federation Account, and then submit their administrative/financial requirements to the National Assembly for appropriation.”
It added, “It should be noted that the commission had made presentations on this issue at several forums. Recently, the commission visited the President and advised on the need for the review of these agencies’ laws to compel them to remit all their revenues to the Federation Account.
“The commission has also been discussing with some of these agencies to resolve the issues by trying to convince them to remit their collections to the Federation Account. Some of these agencies relied on the Acts establishing them to retain and utilise their revenue collections, while others rely on financial regulations to remit their collections into the Consolidated Revenue Fund.”
The RMAFC, therefore, advised members of the National Assembly to take the necessary steps to ensure that funds made by the agencies were remitted into the Federation Account as required by the constitution.