The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has commenced work on a new revenue-sharing formula aimed at giving state and local governments greater fiscal capacity to deliver core responsibilities and promote balanced national growth.
RMAFC Chairman, Dr. Mohammed Bello Shehu, announced this during a panel session titled “Recalibrating Nigeria’s Revenue Allocation Formula” held on Tuesday in Abuja.
Dr. Shehu said the review will produce an equitable, data-driven framework that reflects Nigeria’s present economic realities and constitutional mandates. He explained that the current formula, approved in 1992, has become outdated and fails to capture demographic and fiscal changes across the federation.
“Our goal is to design a formula that empowers subnational governments to meet their constitutional obligations effectively while maintaining national cohesion and macroeconomic stability,” he stated.
He called on participants to deliberate with a sense of national duty, noting that their decisions would shape the ability of governments to fund education, healthcare, and infrastructure.
Dr. Shehu added that amendments to the RMAFC Act now allow the commission to engage directly with private sector entities, including oil companies, to verify and recover revenues due to the Federation. He stressed that revenue mobilisation and accountability must go hand in hand for sustainable national development.
Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, commended the RMAFC’s effort, describing the ongoing reform as vital to fiscal equity. “Equity must begin with revenue mobilisation, not merely allocation,” he said.
Senator Yahaya Abdullahi, Chairman of the Senate Committee on National Planning, and Hajiya Hadiza Bala Usman, Presidential Adviser on Policy Coordination, both urged political consensus to ensure successful implementation.
Representing the Nigeria Governors’ Forum, Dr. Abdulateef Shittu pledged the Forum’s support for a fair and workable formula that strengthens governance at all levels.
