The Federal Government has directed the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) to conduct thorough due diligence in preparing a new and equitable revenue-sharing formula for the country.
The instruction was issued on Monday by the Secretary to the Government of the Federation (SGF), Senator George Akume, during a meeting with the RMAFC management team led by its Chairman, Dr. Mohammed Bello Shehu, at the SGF’s office in Abuja.
According to a statement by Segun Imohiosen, Director of Information and Public Relations, Senator Akume expressed confidence in the Commission’s ability to deliver a credible and inclusive framework that reflects Nigeria’s current fiscal realities.
“I am confident in the capacity of the management of the Commission to deliver on their mandate in developing a comprehensive revenue allocation formula, and I assure you of the readiness of my Office to give the necessary support to the realisation of the project,” Akume said.
The SGF underscored the need for the new formula to guarantee a minimum allocation for essential Ministries, Departments, and Agencies (MDAs), particularly the Ministry of Defence, given its critical role in ensuring national peace and protecting territorial integrity.
RMAFC Draft Formula Nears Completion
In his response, RMAFC Chairman Dr. Mohammed Bello Shehu confirmed that the Commission is in the final stages of preparing a draft of the new revenue-sharing framework. He added that the draft would be presented to the SGF for review before being submitted to the National Assembly for legislative consideration.
The proposed formula is part of wider reforms aimed at restructuring Nigeria’s fiscal system and ensuring a fairer distribution of resources across federal, state, and local governments. The current allocation formula has remained unchanged for years, despite mounting economic and security challenges.
The upcoming review is expected to correct imbalances in resource distribution, strengthen public service delivery, and prioritize funding in key areas such as national security, infrastructure development, and social welfare.
Background: Long-Delayed Review
The effort to revise the revenue-sharing formula has been pending for many years.
- In December 2023, RMAFC announced its intention to begin implementing a new framework by the first quarter of 2024.
- At the time, Dr. Shehu told the House of Representatives Committee on Finance: “I will assure these committee members that sometime next year, the commission will forward a new revenue allocation formula, first quarter to Mr. President, and we believe that we will forward it to the National Assembly for you to do your job on this issue. That I can assure you, sir, and the members too.”
Despite this assurance, implementation has yet to commence, leaving the revenue-sharing reform as an outstanding priority for the Federal Government.
