RMAFC Calls for Increased Domestic Revenue Mobilisation to Boost Development

Segun Awofadeji in Bauchi

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has called on all tiers of government to intensify efforts in mobilising domestic revenues as a strategy to advance national development.

This call was made by RMAFC Chairman, Dr. Mohammed Bello Shehu, during his presentation at the 2024 National Council on Finance and Economic Development (NACOFED) in Bauchi State.

He argued that effective domestic revenue mobilisation (DRM) was critical to achieving fiscal independence and reducing Nigeria’s reliance on external borrowing.

Shehu acknowledged DRM as a pathway that involves using taxes, fees, levies, natural resources, state-owned enterprises, and other productive sectors to create a stable foundation for planning and implementing development programmes.

To strengthen DRM, the commission called on governments to prioritise diversification by promoting high-growth sectors such as agriculture, technology, solid minerals, tourism, and the creative industries.

 Shehu noted that these sectors hold significant potential for job creation and economic growth while mitigating the impact of oil price fluctuations.

He said the global economic environment, marked by fluctuating oil prices, rising debt burdens, and increasing demands for social services, had made boosting domestic revenue an urgent priority for Nigeria.

“This revenue serves as the backbone for public investment in essential sectors such as infrastructure, healthcare, education, and social welfare, directly contributing to socio-economic growth and poverty reduction,” he said.

He warned that Nigeria’s dependence on oil exports exposes the country to global price volatility, making the diversification of domestic revenue sources important for fiscal resilience and economic stability.

Shehu identified several benefits of enhanced DRM, reduced reliance on external debt, preservation of fiscal sovereignty, and the ability to allocate more resources to domestic development rather than debt servicing.

He said: “Effective domestic revenue mobilisation necessitates improvements in governance, transparency, and accountability. As citizens contribute more through taxes, they demand better governance, leading to a virtuous cycle of transparency, and efficiency.”

Shehu stated that financing national development through DRM was not only a financial necessity but also a critical step toward achieving Nigeria’s long-term stability and economic independence.

“Financing national development through domestic revenue mobilisation is imperative to foster an economically self-reliant Nigeria, capable of driving its national development agenda with stability, resilience, and independence,” he added.