By Bassey Udo
The new Revenue Allocation Formula will not only be equitable and data-driven, but will reflect Nigeria’s current economic and constitutional realities, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has assured.
The assurance was given by the Chairman of the Commission, Dr. Mohammed Bello Shehu, who spoke on Tuesday in Abuja at a panel discussion on “Recalibrating Nigeria’s Revenue Allocation Formula.”
Dr. Shehu said the existing revenue sharing formula approved in 1992 no longer reflects Nigeria’s fiscal responsibilities, demographic shifts, or governance realities.
He explained that recent amendments to the RMAFC Act empowered the Commission to engage directly with private sector entities, including oil companies, to verify and recover revenues due to the Federation.
Beyond allocation, the Chairman said revenue mobilisation and accountability remained central to achieving sustainable development in the national economy.
Dr. Shehu gave the assurance that the review of the revenue sharing formula would ensure fairness, balance, and national cohesion.
He urged participants in the session and other stakeholders to set aside personal and primordial sentiments and interests and deliberate as patriotic Nigerians to give the country a new formula that would promote unity and true federalism.
“Our goal is to design a formula that will empower subnational governments to meet their constitutional obligations effectively, while maintaining national cohesion and macroeconomic stability.
“As we deliberate today, let us approach this dialogue not as representatives of different interests, but as custodians of shared destiny. The choices we make here will shape the capacity of governments to deliver education to our children, healthcare to our citizens, and infrastructure to our communities,” the Chairman said.
The Chairman of the Senate Committee on National Planning and Economic Affairs, Senator Yahaya Abdullahi, said, no matter how brilliant the ideas or technical solutions were, without political consensus and a shared national vision, progress would remain elusive.
He urged stakeholders to build transparency and trust to achieve the desired reform.
The Executive Governor of Kwara State and Chairman of the Nigeria Governors’ Forum, Abdulrahman Abdulrazaq, who was represented by Dr. Abdulateef Shittu commended RMAFC for creating a neutral platform for dialogue between the federal and subnational governments, while pledging the Forum’s support for a just and workable revenue sharing formula.
In his remarks, the Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, commended the Commission’s effort and acknowledged that recalibrating the formula was key to national stability.
Bagudu pointed out that the country’s Constitution envisages cooperation among all tiers of government in advancing the welfare and security of the people, adding that promoting equity must begin with revenue mobilisation, not merely allocation.
In her remarks, Special Adviser to the President on Policy Coordination, Hajiya Hadiza Bala Usman, called for a courageous and conclusive review that aligned fiscal reforms with Nigeria’s development.
The panel session featured experts, including Prof. Auwalu Yadudu, Dr. Iyobosa Uwugiaren, Prof. Nazifi Darma, and Prof. Muhammad Muttaka Usman.
Discussions covered constitutional, legal, and economic perspectives, with the panelists urging a formula that would promote fiscal responsibility, innovation, and subnational accountability.
Some stakeholders at the occasion advised that the subnationals should be empowered to take more responsibilities and resources to take care of the people at the grassroots.
The Chairman, Revenue Allocation Formula Committee, Alhaji Kabir Mashi, reassured the people that the Commission would at the end of the process integrate all recommendations into a fair, balanced, and sustainable revenue formula for the country.
