Mkpoikana Udoma
Port Harcourt — The Revenue Mobilisation Allocation and Fiscal Commission, RMAFC, has reaffirmed its commitment to producing a new, data-driven and equitable revenue allocation formula that reflects Nigeria’s evolving fiscal and constitutional realities.
Speaking at a panel discussion titled “Recalibrating Nigeria’s Revenue Allocation Formula” in Abuja, the Chairman of RMAFC, Dr. Mohammed Bello Shehu, described the current formula, approved in 1992, as outdated and no longer reflective of the country’s economic, demographic, and governance shifts.
“The 1992 formula cannot meet the realities of today’s Nigeria,” Dr. Shehu declared.
“Our goal is to design a formula that empowers subnational governments to meet their constitutional obligations effectively while maintaining national cohesion and macroeconomic stability. 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 explained that recent amendments to the RMAFC Act have strengthened the Commission’s mandate, allowing it to engage directly with private sector entities, including oil companies, to verify and recover revenues due to the Federation.
Dr. Shehu emphasised that the new review will not only focus on allocation but also on improved mobilisation, accountability, and efficiency.
“Our approach is guided by fairness, balance, and transparency,” he added. “Beyond allocation, we must ensure every naira mobilised for the Federation Account is properly accounted for.”
Also speaking, Chairman of the Senate Committee on National Planning and Economic Affairs, Senator Yahaya Abdullahi, CON, stressed that political consensus remains vital for any meaningful fiscal reform.
“No matter how brilliant the ideas or technical solutions are, without political consensus and a shared national vision, progress will remain elusive,” he cautioned.
Representing the Nigeria Governors’ Forum, the Governor of Kwara State, Abdulrahman Abdulrazaq, through his delegate, Dr. Abdulateef Shittu, commended RMAFC for fostering dialogue between the federal and state governments.
“We commend the Commission for creating a neutral platform for open conversation. The Governors’ Forum supports a just and workable formula that ensures fairness for all,” he said.
In his remarks, Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, described the recalibration of the formula as critical to national stability.
“Our Constitution envisages cooperation among all tiers of government in advancing the welfare and security of the people,” Bagudu stated. “Equity must begin with revenue mobilisation, not merely allocation.”
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 priorities.
“The time for half measures is over,” she said. “This exercise must produce a formula that drives sustainable growth and accountability at all levels.”
The panel session, moderated by veteran broadcaster Eugenia Abu, featured constitutional and fiscal experts including Prof. Auwalu Yadudu, Dr. Iyobosa Uwugiaren, Prof. Nazifi Darma, and Prof. Muhammad Muttaka Usman. The experts collectively urged the Commission to design a model that promotes fiscal responsibility, innovation, and autonomy for subnational entities.
In his closing remarks, Alhaji Kabir Mashi, Chairman of the Revenue Allocation Formula Committee, expressed gratitude to participants for their inputs, assuring that the Commission will integrate all recommendations.
“We are committed to delivering a fair, balanced, and sustainable formula that will serve Nigeria for decades to come,” Mashi concluded.
The new formula, when completed, is expected to replace the existing one which has been in use for over three decades, with stakeholders hopeful that it will mark a turning point in Nigeria’s revenue governance.
