RMAFC Completes Revenue Allocation Formula Review, New Framework Ready For Implementation

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has completed the review of Nigeria’s Revenue Allocation Formula, paving the way for a new framework for sharing revenues among the Federal, state and local governments.

The commission also announced that it had concluded the review of remuneration for judicial office holders, while the review of salaries and allowances for executive and legislative office holders had reached an advanced stage.

RMAFC Chairman, Mohammed Bello Shehu, disclosed this during an interactive session with members of the Nigerian Guild of Editors in Lagos, where he presented an overview of the commission’s activities and reforms from 2023 to date.

According to a statement issued on Saturday by the Head of the Information and Public Relations Unit, Maryam Yusuf, Shehu said the completed revenue allocation review followed extensive consultations with the three tiers of government, technical stakeholders and other relevant institutions across the country.

He explained that the exercise involved an assessment of fiscal responsibilities, revenue trends and comparative federal systems, culminating in a harmonised report and legislative proposals now ready for transmission to the appropriate authorities.

“The Commission has completed a comprehensive review of Nigeria’s Revenue Allocation Formula. It has completed the review of remuneration for judicial office holders, culminating in the enactment of the Judicial Office Holders (Salaries and Allowances) Act, 2025.

“Also, the review of remuneration for executive and legislative office holders is at an advanced stage, with an executive bill on the Political and Public Office Holders (Salaries and Allowances) Act, 2026, expected to be transmitted to the National Assembly,” Shehu said.

He said the objective of the revenue allocation review was to create a more equitable and sustainable revenue-sharing system that reflects Nigeria’s changing economic and governance realities.

Shehu stressed that remuneration reforms must be accompanied by accountability and improved performance, noting that higher pay should ultimately translate into better service delivery.

“Remuneration reforms must be matched with accountability and performance. Improved pay should translate into improved service delivery,” he said.

Beyond the revenue formula and remuneration reviews, the RMAFC chairman disclosed that the commission had intensified its monitoring of oil and gas production data to ensure the accurate application of the 13 per cent derivation principle.

He said the commission had deployed verification exercises, geospatial mapping and collaboration with relevant agencies to address discrepancies in oil well attribution and ensure that states receive the revenues due to them.

One of the major interventions, according to Shehu, was the reallocation of 17 oil wells from Imo State to Rivers State in compliance with a Supreme Court judgment.

He added that similar interventions had been carried out in Cross River, Akwa Ibom, Imo and Anambra states, while improved reporting of gas production had enabled Enugu and Kogi states to benefit from derivation revenues.

The commission has also strengthened collaboration with the Nigerian Upstream Petroleum Regulatory Commission, NNPC Limited, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the National Boundary Commission and the Office of the Surveyor-General of the Federation.

Shehu said the partnerships were aimed at improving revenue monitoring, resolving attribution disputes and strengthening compliance.

He also disclosed that RMAFC was engaging the Ministry of Defence over persistent challenges associated with crude oil theft, pipeline vandalism and production losses, which he described as major threats to government revenue.

The commission is also exploring revenue opportunities outside the petroleum sector.

Shehu said RMAFC was pursuing partnerships with the Federal Airports Authority of Nigeria and the National Space Research and Development Agency, including the use of satellite and geospatial technologies to identify new revenue sources.

He said the reforms formed part of the commission’s broader efforts to improve data integrity, strengthen inter-agency collaboration and ensure a fairer distribution of national revenue.

On institutional development, Shehu said RMAFC had rehabilitated critical facilities, enhanced security systems and commenced the renovation of its headquarters.

He added that staff welfare had also received attention through improved healthcare services, training and capacity development programmes aimed at strengthening the technical expertise of commission personnel.

Shehu said the engagement with the Nigerian Guild of Editors was designed to promote transparency and deepen public understanding of RMAFC’s constitutional mandate.

He reaffirmed the commission’s commitment to proactive communication, data-driven reforms and stronger collaboration with the media to promote accountability in public finance.

In his vote of thanks, the Chairman of the Public Affairs and Communication Committee and Federal Commissioner representing Kwara State on the commission, Ismail Muhammed Agaka, commended the media for its role in strengthening democratic accountability.

Agaka also reaffirmed the commission’s commitment to sustained engagement with stakeholders as it advances its fiscal and institutional reforms.

RMAFC is a constitutional body responsible, among other functions, for monitoring revenue accruals into and disbursements from the Federation Account, reviewing the revenue allocation formula and determining appropriate remuneration for political and public office holders.

The completion of the revenue allocation review comes amid growing concerns over Nigeria’s fiscal structure, rising expenditure, uneven revenue generation among the three tiers of government and demands from states and local governments for greater fiscal capacity.

The development now sets the stage for the Federal Government and the National Assembly to consider a possible restructuring of how federally collected revenues are distributed among the Federal, state and local governments.