RMAFC vows new equitable revenue allocation formula to reflect Nigeria’s realities

The Chairman of the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC), Dr. Mohammed Bello Shehu, has reaffirmed the Commission’s commitment to producing a new, equitable, and data-driven Revenue Allocation Formula that reflects Nigeria’s current economic and constitutional realities.

Speaking on Tuesday at a panel discussion titled “Recalibrating Nigeria’s Revenue Allocation Formula” in Abuja, Dr. Shehu noted that the existing formula, approved in 1992, no longer reflects Nigeria’s fiscal responsibilities, demographic shifts, or governance realities.

He explained that recent amendments to the RMAFC Act empower the Commission to engage directly with private sector entities, including oil companies, to verify and recover revenues due to the Federation. “Beyond allocation, revenue mobilisation and accountability remain central to achieving sustainable development,” he said.

Dr. Shehu assured participants that the review will ensure fairness, balance, and national cohesion. “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 said.

Senator Yahaya Abdullahi, CON, Chairman of the Senate Committee on National Planning and Economic Affairs, emphasized that political consensus is essential for progress. “No matter how brilliant the ideas are, without a shared national vision, progress will remain elusive,” he said.

Represented by Dr. Abdulateef Shittu, the Executive Governor of Kwara State and Chairman of the Nigeria Governors’ Forum, Abdulrahman Abdulrazaq, commended RMAFC for creating a neutral platform for dialogue between federal and subnational governments and pledged the Forum’s support.

The Honourable Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, CON, and Hajiya Hadiza Bala Usman, Special Adviser to the President on Policy Coordination, highlighted the importance of recalibrating the formula to promote fiscal responsibility, subnational accountability, and national development.

The panel, moderated by Eugenia Abu, featured experts including Prof. Auwalu Yadudu, Dr. Iyobosa Uwugiaren, Prof. Nazifi Darma, and Prof. Muhammad Muttaka Usman. In his vote of thanks, Alhaji Kabir Mashi, OON, Chairman of the Revenue Allocation Formula Committee, assured that all recommendations would be integrated into a fair, balanced, and sustainable revenue formula for Nigeria.