Revenue Mobilisation Allocation and Fiscal Commission Act (Amendment)

Revenue Mobilisation, Allocation and Fiscal Commission Act, 2025 Federal Ministry of Finance — Federal Republic of Nigeria

What Is This Policy?

The Revenue Mobilisation, Allocation and Fiscal Commission Act, 2025, is Nigeria's modernised statutory framework governing the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC). It repeals the outdated LFN 2004 version and recalibrates the Commission's legal and operational footing to address persistent gaps in fiscal oversight, revenue transparency, and inter-governmental trust. The Act strengthens the Commission's independence, expands its investigative powers, and introduces robust accountability and enforcement mechanisms suited to Nigeria's contemporary public finance environment.

Who Does It Target?

Federal, state, and local government revenue-generating agencies and MDAs Officers and board members of the Commission Private companies subject to information requests related to Federation Account remittances Persons or entities that divert or misappropriate public revenue from the Federation Account All three tiers of government as beneficiaries of improved revenue monitoring and allocation

What Does It Aim to Achieve?

Strengthen the RMAFC's independence through a first-line charge on the Consolidated Revenue Fund Align the Commission's establishment and appointments with constitutional standards Expand investigative reach to include private companies involved in government revenue flows Introduce mandatory reporting to both the President and the National Assembly Deter revenue leakages and diversions through stricter criminal sanctions and compliance obligations Modernise internal governance with clearer administrative structures, staffing rules, and term limits

Key Features

Constitutional Alignment: The Act revises the Commission's establishment provisions to confirm its authority derives from the Constitution, not statute alone. Presidential appointments of the Chairman and members now require Senate confirmation. A ten-year disqualification period for individuals removed from public office for misconduct has been codified, and the constitutional requirement that approved revenue allocation formulas remain in force for five years has been incorporated. Enhanced Funding Structure and Financial Autonomy: The Commission's operational fund is designated a direct first-line charge on the Consolidated Revenue Fund, reducing dependence on discretionary allocations. A new supplementary fund may receive grants, endowments, donor contributions, government allocations, and income from Commission activities. The Chairman is also formally designated as both accounting officer and Chief Executive Officer. Expanded Investigative and Oversight Powers: The Act authorises the Commission to request documents and information from both government agencies and private companies, specifically in relation to the remittance of accruals into, or disbursements from, the Federation Account. Oversight has been extended to include receipts and returns made in favour of the government. The Commission is now a statutory member of regional development commissions and may issue binding regulations and guidelines in furtherance of its mandate. Strengthened Accountability and Reporting Obligations: Income and expenditure reports must be submitted to the National Assembly no later than 30th June each year. The Commission's annual report, including audited accounts, must be submitted to the President at least three months before year-end. A copy of the auditor's report on audited accounts must also be presented to the National Assembly by 30th June annually. Offences, Penalties and Compliance Enforcement: The Act criminalises failure, delay, or diversion of government revenue not remitted within 30 days of collection. Convicted officers face a N1 million fine, a minimum five-year imprisonment term, or both. Submission of false accounts attracts a N1 million fine and a minimum one-year term. Any person who fraudulently diverts Federation Account disbursements is liable to a fine of 10% of the diverted sum, full restitution, and a minimum ten-year imprisonment term.

Current Status

Rollout Stage: Enacted in 2025; replaces the Revenue Mobilisation, Allocation and Fiscal Commission Act (LFN 2004) Constitutional alignment provisions are immediately operative upon commencement Monthly plenary meetings and committee structures to be operationalised by the Commission Reporting obligations (National Assembly and Presidency) take effect from the current financial year Criminal sanctions apply to all revenue-generating agencies and Commission officers from commencement

How to Access

Revenue-generating agencies: Ensure timely remittance of all accruals to the Federation Account within 30 days of collection Government MDAs: Comply with information requests from the RMAFC regarding Federation Account flows Private companies: Respond to RMAFC requests for documents related to government revenue remittances Commission officers: Submit required annual reports to the President and National Assembly within stipulated deadlines Contact: Revenue Mobilisation, Allocation and Fiscal Commission — rmafc.gov.ng | Ministry of Finance: finance.gov.ng

Important Terms

Federation Account: The constitutionally mandated account into which all federal revenues are paid and from which disbursements to the three tiers of government are made First-Line Charge: An automatic deduction from the Consolidated Revenue Fund before other appropriations, guaranteeing the Commission's operational funding Domestic Supply Obligation: All upstream licence holders are required to supply gas to the domestic market as a condition of their licence (retained under PIA 2021 framework) Revenue Allocation Formula: A formula prescribing the percentage share of Federation Account revenues allocated to each tier of government; must remain operative for five years once approved Tax Ombud: An independent office created under the Joint Revenue Board Establishment Act 2025 to receive and resolve taxpayer complaints (related reform)

Impact & Metrics

The Commission's statutory framework had remained largely unchanged for over three decades before the 2025 Act Enhanced investigative powers now extend to private sector companies involved in government revenue flows for the first time Criminal sanctions raised significant diversion of Federation Account funds now attracts a minimum ten-year imprisonment term Mandatory reporting to the National Assembly by 30th June each year introduces legislative oversight does not present in the repealed Act First-line charge status for the Commission's fund is expected to reduce past challenges with discretionary funding constraints

Official Resources

Website: rmafc.gov.ng | finance.gov.ng | nationalassembly.gov.ng Act: Revenue Mobilisation, Allocation and Fiscal Commission Act, 2025 — available via the National Assembly and Federal Ministry of Finance Contact: Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC), Abuja Summary prepared using the Policy Summary Template | Source: RMAFC Act 2025, Nigerian Legislative Review 2025 (Olaniwun Ajayi) | March 2026

Legal Framework

Enacted under the legislative powers of the National Assembly vested by Section 4 and mandated by Section 153 of the 1999 Constitution (as amended), which establishes the RMAFC as a federal executive body. The Revenue Mobilisation, Allocation and Fiscal Commission Act 2025 is the principal statute. Operates alongside Section 162 of the Constitution on the Federation Account, the Fiscal Responsibility Act 2007, and the Finance Acts governing revenue distribution.