Commission, Stakeholders Seek Fairness In Revenue Allocation Formula

The chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr Mohammed Bello Shehu, has reaffirmed the Commission’s determination to produce a new, equitable, and data-driven revenue allocation formula that reflects Nigeria’s current economic and constitutional realities.

Speaking at a panel discussion titled “Recalibrating Nigeria’s Revenue Allocation Formula” held on Monday in Abuja, Dr Shehu said 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 have empowered the Commission to engage directly with private sector entities, including oil companies, in verifying and recovering revenues due to the Federation. The chairman added that beyond allocation, revenue mobilisation and accountability remain central to achieving sustainable development.

Dr Shehu assured that the review would 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 formula 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. Our choices here will shape governments’ capacity to deliver education to our children, healthcare to our citizens, and infrastructure to our communities.”

Also speaking, the Senate Committee on National Planning and Economic Affairs chairman, Senator Yahaya Abdullahi, 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 Governor of Kwara State and chairman of the Nigeria Governors’ Forum, 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.

In his remarks, the minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu commended the Commission’s effort and acknowledged that recalibrating the formula is key to national stability. According to him, “Our Constitution envisages cooperation among all tiers of government in advancing the welfare and security of the people. Equity must begin with revenue mobilisation, not merely allocation.”

In her remarks, special adviser to the President on Policy Coordination, Hajiya Hadiza Bala Usman, called for a courageous and conclusive review that aligns fiscal reforms with Nigeria’s development .

The panel session, moderated by Eugenia Abu, featured experts, including Prof. Auwalu Yadudu, Dr. Iyobosa Uwugiaren, Prof. Nazifi Darma, and Prof. Muhammad Muttaka Usman. Discussions covered constitutional, legal, and economic perspectives, with panellists urging a formula that promotes fiscal responsibility, innovation, and subnational accountability.

Some stakeholders at the occasion advised that the subnationals should be empowered to take more responsibilities and resources to take care of the people.

In his vote of thanks, Alhaji Kabir Mashi, OON, chairman, revenue allocation formula committee, appreciated all participants for their valuable insights, assuring that the Commission will integrate all recommendations into a fair, balanced, and sustainable revenue formula for Nigeria.