RMAFC, COVID-19 And Review Of Political Office Holders’ Remuneration 

Six months into the year, 2020, the promised review of the remuneration of political office holders in the Federal, States and the Local Governments is yet to be actualized. Agreed, COVID-19 pandemic has slowed down governance at all levels, yet, public and private businesses have not halted completed as many have resorted to virtual office. In this piece, JUSTUS NDUWUGWE looks at issues concerning the review and reminds the Revenue, Mobilisation, Allocation and Fiscal Commission (RMAFC) that the year is running out on its key constitutional function.

Over time, there has been stringent calls from the public for the review of the remuneration of political office holders in the face of the dwindling income of government at all levels.

These calls have become shrill following the impact of the COVID-19 pandemic which has laid bare the lean resources available for government operations due to the dependence on oil revenue with its undulating price movement.
Dwindling revenues amidst rising debt burden.

It is clear that federal government is almost going cap-in-hand seeking for loans from virtually every available source including the World Bank, African Development Bank, China, European Union countries, etc. in order to run its affairs.

According to official figures from the Debt Management Office (DMO), as at March 31, 2020, Nigeria has a total public debt of $79.303billion and external debt stock of $27.67billion. There are indications that more loans would be procured in due course to mitigate the financial impact of the COVID-19 pandemic on the country.

The growing challenges occasioned by the COVID-19 pandemic have exacerbated the reduction in the available revenues shared by the Federal Account Allocation Committee (FAAC). For instance, in the month of April, 2020, FAAC shared N606.19billion among the Federal, States and Local Councils. The revenue shared among the constituent components for the month of May, 2020 compacted to N547.3billion.

Already, economic experts and those interested in the wellbeing of the country, from home and abroad, are deeply worried about Nigeria’s debt burden. One of those experts, Dr. Bongo Adi, a director in the Lagos Business School (LBS) had told Channels TV, in an interview monitored from Abuja, that the country was using about 96% of its revenues to service its debt: that is “for every One Naira revenue, 96 kobo is used for debt servicing”.

One is not oblivious of the fact that the federal and state goverments are making concerted efforts to expand the revenue base of the governments through investments in non-oil products production and export, especially in agriculture and minerals sub-sector.
The Imperative of review of remuneration of political office holders.

Obviously, the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) seems aware of this dire economic situation and the concerns expressed by the citizens across the country. It will be recalled that at the retreat held between 8th and 12th December, 2019 in Lagos, with the theme, “Consolidating the RMAFC for Greater Efficiency: Issues, Expectations and Way Forward, the Chairman, Engr. Elias Mbam said that “the Commission has programmed to review the remuneration of political office holders in 2020 to reflect current realities”

Indeed, in spite of the negative impact the salaries and allowances of the retinue of political aids have had on the near-prostrate economy of the federal, states and local authorities’ economy, many State Governors at the twilight of their administration awarded to themselves, frivolous severance packages that are at variance with realities on the ground and which enabled them to continue to pillage state resources even after their exit. We have witnessed the reversals of such windfall severance packages by some States and wish that other states could follow suite.

In an interaction with reporters, the Chairman of RMAFC had said: “The present law that designed their entitlements is the Remuneration Act of 2008, which provides that at the end of their service they are entitled to severance allowance of 300 per cent provided that they have served for a minimum of two years. This is the only thing provided by the law for governors by that Act. So, anything outside this is not known to our own laws”.
In his words: “But there is also a provision in the law, which permits a state House of Assembly to provide pension for their leaders.

As far as we are concerned the one we know, and the one we said it should be, is the Remuneration Act of 2008, which is basically severance allowance and nothing more.”

Fortunately, the RMAFC Chairman assured that the Commission would review the remunerations of Political Office Holders to reflect the country’s current realities in line with its Constitutional mandate.

The review, RMAFC said, would affect the remunerations of Local Government Councils’ Chairmen and Councilors as well as Governors, Commissioners, Ministers, the President, Vice President and Members of States’ and National Legislatures.

He said part of the Commission’s responsibility “is to do the remuneration appropriate for the political office holders from the local council to the national level whether appointed or elected. Our work does not include those of civil servants, which are handled by the Salaries and Wage Commission. I am talking purely on the political office holders from the council level to the presidency. That is the area we are saying that we will review in line with our constitutional mandate to align them to our current realities.”

RMAFC’s powers to conduct review

According to excerpts gleaned from the RMAFC website, the functions of the Commission as provided under Paragraph 32(a-e) of Part I to the Third Schedule of the 1999 Constitution of the Federal Republic of Nigeria (As Amended) are as follows:
(a) Monitor the accruals to and disbursement of revenue from the Federation Account;
(b) Review, from time to time the revenue allocation formulae and principles in operation to ensure conformity with changing realities; provided that any revenue 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;
(c) Advise the Federal and State Governments on fiscal efficiency and methods by which their revenue can be increased;
(d) Determine the remuneration appropriate for political officeholders including the President, Vice President, Governor Deputy Governors, Ministers, Commissioners, Special Advisers, Legislators and the holders of the offices mentioned in Sections 84 and 124 of this Constitution; and
(e) Discharge such other functions as are conferred on the Commission by this Constitution or any Act of the National Assembly.

From the foregoing, it is clear that the RMAFC has the constitutional powers to review the remuneration of political office holders in the face of the current realities of devastation of the economy and dislocation of livelihoods occasioned by the COVID-19 pandemic. But the question is: Can members of the Commission muster the required courage to carry out its functions without subjecting their decisions on the scale of politics?

*Sir Justus Nduwugwe, a media consultant, writes from Abuja