The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has hinted at plans to review the salaries of political office holders in Nigeria, describing current earnings as inadequate, unrealistic, and outdated in the face of rising responsibilities and economic challenges.
At a press briefing in Abuja on Monday, RMAFC Chairman, Dr. Mohammed Shehu disclosed that President Bola Tinubu presently earns N1.5 million monthly, while ministers receive less than N1 million — figures that have remained unchanged since 2008.
‘You are paying the President of the Federal Republic of Nigeria N1.5 million a month, with a population of over 200 million people. Everybody believes that it is a joke’, Shehu said.
He added: ‘You cannot pay a minister less than N1m per month since 2008 and expect him to put in his best without necessarily being involved in some other things. You pay either a CBN (Central Bank of Nigeria) governor or the DG (Director Genereal) 10 times more than you pay the President. That is just not right. Or you pay him (the head of an agency) 20 times higher than the Attorney-General of the Federation. That is absolutely not right’.
But the Nigeria Labour Congress (NLC) kicked against the plans by the RMAFC to review upward the salaries of political office holders, saying the proposal ignores the country’s worsening inequality and the hidden perks that already inflate earnings in government.
At the press briefing in Abuja, the RMAFC boss stressed that the commission was not responsible for setting the minimum wage for civil servants or public sector workers, but was constitutionally mandated to determine the salaries of political, judicial, and legislative office holders.
‘We are strictly restricted to political office holders, governors, senators, legislators, ministers, DGs, and other people”, he explained. Shehu also noted that despite public hostility towards pay increases for politicians, it was important to maintain realistic remuneration that reflected their responsibilities.
Shehu also announced that RMAFC had begun a long-overdue review of Nigeria’s vertical revenue-sharing formula, which determines how federally collected revenues are shared among the federal, state, and local governments. The current formula, which has been in place since 1992, allocates 52.68% to the Federal Government, 26.72% to states, and 20.60 per cent to local governments.
A further 4.18% is reserved for special funds: 1 per cent each for the Federal Capital Territory and ecological fund, 1.68% for the natural resources development fund, and 0.5% for stabilisation.
‘In line with this constitutional responsibility and in response to the evolving socio-economic, political and fiscal realities of our nation, the commission has resolved to initiate the process of reviewing the revenue allocation formula to reflect emerging socio-economic realities’, Shehu told reporters.
He explained that recent constitutional amendments had expanded the fiscal burden of state governments. ‘The situation has made it essential to re-evaluate the structure of fiscal federalism in order to foster economic growth in individual states, enabling them to become independent from the central government and ensuring equity, responsiveness, and sustainability’, he said.
Shehu recalled that previous efforts to adjust the formula were unsuccessful. The Commission had presented a report in 2022 under former Chairman Elias Mbam recommending 45.17% for the Federal Government, 29.79% for states, and 21.04% for local governments.
However, the proposal was never implemented by the Muhammadu Buhari administration. The revenue sharing formula, which has remained a controversial subject in Nigeria even before independence in 1960, refers to the proportion of resources accruing to the federation that goes to each of the components of the nation.
It also defines the proportion of resources that must be retained in the territories where they are generated as well as what goes to the agencies of government that collect the revenues on behalf of the federation.
The current revenue formula was designed during the tenure of former president, Olusegun Obasanjo. However, there have been calls and attempts to change this formula to ensure equitable distribution of the accrued revenue.
The current plan to review the formula would not be the first time the RMAFC had undertaken to tinker with the country’s revenue-sharing arrangement. In 2013, the commission embarked on a nationwide consultation with the 36 states and met with notable figures with a plan to review the formula.
Investigation showed that the politics and the eventual consequence of the Federal Government losing its fat allocation of the federation account are responsible for the delay in completing the process for the implementation of the new revenue formula.
In a statement on December 19, 2013, a former Chairman of Public Affairs and Communication Committee at RMAFC, Ambassador Zubairu Dada had said the draft new revenue formula was ready and would be forwarded to the then President Goodluck Jonathan, in accordance with the constitution. It is the responsibility of the President to lay the new formula before the National Assembly for necessary legislation.
Dada said members of the commission unanimously adopted the draft report following a two-week retreat at Tinapa, Cross River State, where all the submissions, relevant documents, and inputs from stakeholders were analysed and considered.
The commissioners had converged from 23rd November to 7th December on Tinapa Business Resort and Hotel, Calabar, Cross River State Capital, where they held a two-week retreat to brainstorm on the Revenue Allocation Formula Draft Report.
Investigation shows that Jonathan did not make any attempt to table the draft revenue formula before the National Assembly before his tenure elapsed on 29 May 2015.
When Buhari assumed office on 29 May 2015, there was hope that the draft document would receive a fresh breath of life, given that many state governments, especially in the states controlled by the All Progressives Congress, had vigorously advocated for the adoption of a new formula to help the states meet their financial challenges.
As Jonathan, Buhari also tactically declined to receive the new formula from RMAFC. Despite the fact that previous attempts to review the current formula have failed, the commission reaffirms its commitment to undertake a fresh review of the formula.
The current RMAFC chairman assured stakeholders that the ongoing review would be “inclusive, data-driven, and transparent. This review will involve consultations with the Presidency, National Assembly, state governors, ALGON (Association of Local Government of Nigeria), the judiciary, civil society organisations, the private sector, and development partners.”
Shehu added that with the new Act signed into law in April, the Commission now enjoys financial autonomy for the first time.
Nigeria’s organised labour criticised the plan by the RMAFC to review upward the salaries of political office holders, saying the proposal ignores the country’s worsening inequality and the hidden perks that already inflate earnings in government.
The NLC pushed back, insisting that the real problem is not the official salary figures but the allowances and perks of office that remain hidden from public view.
‘The President’s salary may be about N1.5 million a month, but when allowances are added, the total package can exceed N100 million’, an NLC high-ranking official who did not want his name mentioned due to a lack of authorisation to speak on the matter, told The PUNCH.
‘Allowances for medical care, housing, digital services, internet access, security, travel, and even COVID-related expenses are all buried in the system. If the government can publish the president’s salary, then it should also publish these allowances, because that is where the true burden lies’, the source said.
Nigerian workers are still grappling with the high cost of living, making it difficult to survive on the minimum wage, even as inflation shows signs of easing.
Data from the National Bureau of Statistics revealed that the country’s headline inflation rate fell for the fourth straight month in July 2025, moderating to 21.88% from 22.22% in June.
Food inflation remained a pressing concern at 22.74% year-on-year, although this was significantly lower than the 39.53% recorded in July 2024.
The union accused political leaders of living in luxury while millions of citizens sink deeper into poverty.
