RMAFC moves to review Nigeria’s revenue sharing formula

Barbara Bako, Abuja.

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has launched a fresh push to overhaul Nigeria’s decades-old revenue sharing formula, describing the move as vital to restoring fairness, accountability, and true fiscal federalism.

RMAFC Chairman, Dr. Mohammed Bello Shehu, speaking at a panel discussion titled “Recalibrating Nigeria’s Revenue Allocation Formula” held on Tuesday in Abuja, said the existing formula approved in 1992 no longer reflects the country’s fiscal responsibilities, demographic shifts, or governance realities.

He explained that recent amendments to the RMAFC Act have empowered the Commission to engage directly with private sector entities, including oil companies, in verifying and recovering revenues due to the Federation.

L-R: Alh Kabir Mashi OON (RMAFC Commissioner, Katsina State and Chairman, Revenue Allocation Formula Committee); Prof. Auwalu Yadudu; Hon. Minister of Budget and Evonomic Planning, HE Sen. Abubakar Atiku Bagudu CON; Iyobosa Uwugiaren, PhD; RMAFC Chairman, Dr. Mohammed Bello Shehu OFR; SA to the President on Policy Coordination, Hadiza Bala Usman; Sen. Yahaya Abdullahi, Chairman, Senate Committee on National Planning and Economic Affairs; Rep. of Chairman Governors’ Forum, Dr. Abdulateef Shittu; and Moderator, Eugenia Abu at Transcorp Hilton during RMAFC Panel Discussion on Recalibrating Nigeria’s Revenue Allocation Formula.

The Chairman added that beyond allocation, revenue mobilisation and accountability remain central to achieving sustainable development.

Dr. Shehu gave the assurance that the review will ensure fairness, balance, and national cohesion.

He therefore urged participants to set aside personal interests and deliberate as patriotic Nigerians.

He said, “Our goal is to design a formular that empowers subnational governments to meet their constitutional obligations effectively while maintaining national cohesion and macroeconomic stability. As we deliberate today, let us approach this dialogue not as representatives of different interests but as custodians of shared destiny.”

“The choices we make here will shape the capacity of governments to deliver education to our children, healthcare to our citizens, and infrastructure to our communities,” he added.

Read also:FG backs Commonwealth initiative to expand trade ties

Speaking, Senator Yahaya Abdullahi, CON, Chairman of the Senate Committee on National Planning and Economic Affairs, said, “No matter how brilliant the ideas or technical solutions are, without political consensus and a shared national vision, progress will remain elusive.”

He urged stakeholders to build transparency and trust to achieve the desired reform.

The Executive Governor of Kwara State and Chairman of the Nigeria Governors’ Forum, His Excellency Abdulrahman Abdulrazaq, who was represented by Dr. Abdulateef Shittu, commended RMAFC for creating a neutral platform for dialogue between the federal and subnational governments while pledging the Forum’s support for a just and workable formula.