The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has completed the review of Nigeria’s Revenue Allocation Formula, paving the way for a new framework for sharing revenues among the federal, state and local governments.
The commission also said it had concluded the review of remuneration for executive, legislative and judicial officeholders, while the review of salaries and allowances for political and public officeholders had reached an advanced stage.
“The commission has completed a comprehensive review of Nigeria’s Revenue Allocation Formula. It has completed the review of remuneration for judicial officeholders, culminating in the enactment of the Judicial Office Holders (Salaries and Allowances) Act, 2025.
“Also, the review of remuneration for executive and legislative officeholders is 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.”
The chairman of RMAFC, Mohammed Shehu, disclosed this during an interactive session with members of the Nigerian Guild of Editors in Lagos, where he presented an overview of the commission’s activities and reforms from 2023 to date.
Shehu, in a statement issued by the Head, Information and Public Relations Unit, Maryam Yusuf, on Saturday, said the completed revenue allocation review followed extensive consultations with the three tiers of government, technical stakeholders and other relevant institutions across the country.
According to him, the exercise involved an assessment of fiscal responsibilities, revenue trends and comparative federal systems, culminating in a harmonised report and legislative proposals that are now ready for transmission to the appropriate authorities.
The RMAFC chairman said the objective was to create a revenue-sharing system that would be more equitable and sustainable while taking into account the changing economic and governance realities in the country.
Shehu also confirmed that the commission had completed the review of remuneration for judicial officeholders, which culminated in the enactment of the Judicial Office Holders (Salaries and Allowances) Act, 2025.
He said 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.
The development comes amid long-running concerns over the adequacy of remuneration for public officeholders and the need to balance improved compensation with accountability and performance.
Shehu stressed that salary increases must be accompanied by better service delivery, saying improved remuneration should not be treated as an end in itself.
He said, “Remuneration reforms must be matched with accountability and performance. Improved pay should translate into improved service delivery.”
Beyond the revenue formula and remuneration reviews, the chairman said RMAFC had intensified its monitoring of oil and gas production data to ensure that the 13 per cent derivation principle was accurately applied.
He said the commission had deployed verification exercises, geospatial mapping and collaboration with relevant agencies to address discrepancies in oil well attribution and ensure that states received the revenues due to them.
One of the major interventions, according to Shehu, was 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 carried out in Cross River, Akwa Ibom, Imo and Anambra states, while improved reporting of gas production had enabled Enugu and Kogi states to benefit from derivation revenues.
The commission also said it had strengthened its collaboration with the Nigerian Upstream Petroleum Regulatory Commission, Nigeria National Petroleum Company Limited, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the National Boundary Commission and the Office of the Surveyor-General of the Federation.
Shehu said the partnerships were aimed at improving revenue monitoring, resolving attribution disputes and strengthening compliance.
He also disclosed that RMAFC was engaging the Ministry of Defence on the persistent challenges of crude oil theft, pipeline vandalism and production losses, which he described as major threats to government revenue.
The commission is also looking beyond the petroleum sector for additional sources of revenue.
Shehu said RMAFC was exploring partnerships with the Federal Airports Authority of Nigeria and the National Space Research and Development Agency, including the deployment of satellite and geospatial technologies to identify new revenue opportunities.
He said the reforms were part of the commission’s broader effort to improve data integrity, strengthen inter-agency collaboration and ensure a fairer distribution of national revenue.
The chairman said RMAFC had also recorded improvements in its institutional infrastructure through the rehabilitation of critical facilities, enhanced security systems and ongoing renovation of its headquarters.
He added that staff welfare had received attention through improved healthcare services, training and capacity development programmes designed to strengthen the technical expertise of the commission.
Shehu said the engagement with the Nigerian Guild of Editors was aimed at improving transparency and ensuring that Nigerians better understood the commission’s constitutional mandate.
He reaffirmed RMAFC’s commitment to proactive communication, data-driven reforms and stronger collaboration with the media in promoting 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 sustained engagement with stakeholders as it advances its fiscal and institutional reforms.
Other members of the Public Affairs and Communication Committee at the event included Federal Commissioners Peter Opara (Imo), Ekene Enefe (Anambra), Hadizatu Mustapha (Borno), Ahmed Hassan (Adamawa), Bob-Helen Inafa (Bayelsa), Oti Linda (Abia), Prof Olusegun Wright (Lagos) and Victor Eboigbe (Edo).
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 office holders.
The current push to review revenue sharing comes as the country’s fiscal structure continues to face pressure from rising expenditure, uneven revenue generation among the tiers of government and growing demands from states and local governments for greater fiscal capacity.
The completion of the review therefore sets the stage for the Federal Government and the National Assembly to consider a possible restructuring of how federally collected revenues are distributed among the three tiers of government.
