The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has formally launched the review of Nigeria’s Revenue Allocation Formula (RAF) to ensure fairness, equity, and alignment with the nation’s evolving socio-economic realities.
Speaking at a press conference at the Shehu Musa Yar’Adua Centre, Abuja, RMAFC Chairman, Dr. Mohammed Bello Shehu, described the exercise as a constitutional duty that has become necessary in light of Nigeria’s changing political and economic landscape.
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“This important press conference marks the formal unveiling of the exercise to review the current Revenue Allocation Formula for sharing revenue among the three tiers of government in Nigeria,” Dr. Shehu stated.
He recalled that the last comprehensive review of the formula was conducted in 1992, with only modifications introduced through executive orders since 2002.
According to him, recent demographic shifts, economic pressures, and constitutional amendments—such as the devolution of responsibilities for power generation, railways, and correctional services to subnational governments—have created additional financial and administrative burdens at the state and local government levels.
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“These developments make it essential to reevaluate the structure of fiscal federalism in order to drive growth and ensure sustainability,” he added.
Also speaking, the Chairman of the Revenue Allocation Formula Committee and Federal Commissioner representing Katsina State, Kabir Muhammad Mashi,stressed that the review would be data-driven, rigorous, and inclusive.
“This review is not just about figures; it is about equity and justice in resource allocation. We will engage critical stakeholders—including the Presidency, National Assembly, State Governments, ALGON, the Judiciary, Civil Society, the Private Sector, and Development Partners—to ensure that the new formula reflects Nigeria’s current economic realities,” Mashi assured.
He further explained that the Commission would adopt cutting-edge research, empirical data, and global best practices in order to strengthen Nigeria’s fiscal federalism.
The RMAFC reaffirmed its commitment to transparency and inclusiveness throughout the process, stressing that national acceptance of the outcome is a priority.
Some stakeholders at the event urged the Commission to tie allocations directly to infrastructural development and to promote true federalism in the discharge of its mandate.