The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has completed its review of Nigeria’s Revenue Allocation Formula, paving the way for proposed changes to the distribution of federally collected revenue among the federal, state and local governments.
The commission also said it had completed the review of remuneration for judicial officeholders, while reviews covering executive and legislative officeholders were at an advanced stage.
RMAFC Chairman, Mohammed Shehu, disclosed this during an interactive session with members of the Nigerian Guild of Editors in Lagos.
According to a statement issued on Saturday by the commission’s Head of Information and Public Relations, Maryam Yusuf, Shehu said the revenue allocation review followed extensive consultations with the three tiers of government, technical stakeholders and other relevant institutions across the country.
“The commission has completed a comprehensive review of Nigeria’s Revenue Allocation Formula,” he said.
Shehu said the exercise involved an assessment of fiscal responsibilities, revenue trends and comparative federal systems, resulting in a harmonised report and legislative proposals ready for transmission to the appropriate authorities.
He said the review was designed to establish a more equitable and sustainable revenue-sharing framework that reflects Nigeria’s changing economic and governance realities.
On remuneration, Shehu said the review for judicial officeholders had culminated in the enactment of the Judicial Office Holders (Salaries and Allowances) Act, 2025.
He added that the review of remuneration for executive and legislative officeholders was also 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 stressed that any increase in remuneration should be accompanied by greater accountability and improved performance.
“Remuneration reforms must be matched with accountability and performance. Improved pay should translate into improved service delivery,” he said.
Oil, gas revenue monitoring
Beyond the revenue formula and remuneration reviews, the RMAFC chairman said the commission had intensified its monitoring of oil and gas production data to ensure 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 resolve discrepancies in oil well attribution and ensure that states received revenues due to them.
According to him, one of the commission’s major interventions resulted in the reallocation of 17 oil wells from Imo State to Rivers State in compliance with a Supreme Court judgment.
He said similar interventions had been undertaken in Cross River, Akwa Ibom, Imo and Anambra states, while improved gas production reporting had enabled Enugu and Kogi states to benefit from derivation revenues.
The commission has also strengthened its collaboration with the Nigerian Upstream Petroleum Regulatory Commission, Nigerian National Petroleum Company Limited, Nigerian Midstream and Downstream Petroleum Regulatory Authority, National Boundary Commission and the Office of the Surveyor-General of the Federation.
Shehu said the partnerships were intended to improve revenue monitoring, resolve attribution disputes and strengthen compliance.
He added that RMAFC was engaging the Ministry of Defence over crude oil theft, pipeline vandalism and production losses, which he described as major threats to government revenue.
Exploring new revenue sources
The commission is also exploring revenue opportunities outside the petroleum sector.
Shehu said RMAFC was considering 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 additional revenue sources.
He said the initiatives formed part of the commission’s broader efforts to improve data integrity, strengthen inter-agency collaboration and promote a fairer distribution of national revenue.
Shehu also highlighted improvements in the commission’s institutional infrastructure, including the rehabilitation of critical facilities, enhanced security systems and ongoing renovation of its headquarters.
He said staff welfare had also received attention through improved healthcare services, training and capacity-building programmes aimed at strengthening the technical expertise of RMAFC personnel.
The chairman said the engagement with the Nigerian Guild of Editors was part of efforts to improve transparency and help Nigerians better understand the commission’s constitutional mandate.
He reaffirmed RMAFC’s commitment to proactive communication, data-driven reforms and closer 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 Agaka, commended the media for its role in strengthening democratic accountability.
Agaka reaffirmed the commission’s commitment to continued 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 officeholders.
The completion of the latest review comes amid continued debate over Nigeria’s fiscal structure and the capacity of the three tiers of government to meet their growing financial obligations.
The proposed new formula will now require consideration by the relevant authorities before any changes to the existing revenue-sharing arrangement can take effect.
