Abuja: The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has initiated a comprehensive review of Nigeria’s revenue allocation formula, aiming to create a fair and equitable sharing system for the nation. Dr. Mohammed Bello, Chairman of the commission, announced this at a news conference, emphasizing the need for a system that reflects the current responsibilities, needs, and capacities of the three tiers of government, in alignment with constitutional roles.
According to News Agency of Nigeria, the current allocation formula was last fully reviewed in 1992, with several executive adjustments made since 2002, but a complete overhaul had not been undertaken until now. Dr. Bello explained that Paragraph 32 (b), Part I of the Third Schedule of the 1999 Constitution mandates the commission to periodically review the formulae and principles to ensure they conform with changing realities.
The commission’s initiative responds to socio-economic, political, and fiscal changes in Nigeria, including demographic and constitutional transformations. Recent constitutional amendments by the 9th National Assembly have shifted certain responsibilities, such as electricity transmission, railways, and prisons, to sub-national governments, increasing their financial and administrative burdens. This shift necessitates a re-evaluation of fiscal federalism to promote economic growth and autonomy for individual states while maintaining equity and sustainability.
Dr. Bello emphasized that the review process would be inclusive, data-driven, and transparent, involving consultations with critical stakeholders including the presidency, national assembly, state governors, and various organizations. The commission is committed to integrating cutting-edge research, empirical data, and international best practices in its analysis.
Mr. Kabir Mashi, Chairman of the formula committee, noted that a previous report on the Vertical Revenue Allocation Formula was set aside due to constitutional amendments affecting government responsibilities. The review aims to address current socio-economic challenges and align with the new economic policies of the current administration.
The committee is expected to conduct the review process inclusively, transparently, and in accordance with the 1999 Constitution. The full report is anticipated to be submitted by December 2025.