The Revenue Mobilisation Allocation and Fiscal Commission has emphasized the need for governments at all levels to embark on transformative economic diversification to meet current economic realities.

Speaking at a retreat for members of the Mobilisation and Diversification Committee, RMAFC Chairman Muhammed Bello Shehu highlighted the importance of evaluating existing revenue mobilisation frameworks, exploring innovative avenues for economic diversification, and strengthening collaboration with states and other stakeholders.

“Nigeria’s fiscal trajectory is at a crossroads. While the federal government continues to face growing expenditure needs, internally generated revenue (IGR) remains insufficient across most states. The time has come for all stakeholders to adopt a deliberate and data-driven approach to revenue mobilisation and economic diversification,” said Honourable Ismail Mohammed Agaka, Federal Commissioner representing Kwara State.

The retreat, held at the Metropolitan Hotel in Calabar, Cross River State, aimed to examine issues affecting the committee’s performance and deliberate on innovative ways to drive economic diversification.

The committee recommended adding economic diversification efforts as a proxy for sharing revenue allocation formula and emphasized the need for zonal advocacy to enhance revenue generation.

Other key recommendations include:
– Developing a National Policy Document: RMAFC should develop a national policy document on economic diversification, tailored to the economic potential and peculiarities of the three tiers of government.
– Public-Private Partnerships: Fostering public-private partnerships and facilitating collaboration amongst federal, state, and local governments to boost investment and economic growth.
– Informal Sector Taxation: Bringing the informal sector into the tax net using banks and the financial sector through zonal advocacy.
– Revenue-Generating Projects: Governments should embark on projects with huge revenue potential and job creation, and continue infrastructural development from past administrations.
– Rebranding Past Programmes: The Commission’s past programmes on economic diversification should be rebranded and reorganised to reflect current economic realities.