Dr. Mohammed Bello Shehu, Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), has reiterated the Commission’s commitment to developing a fresh, fair, and data-informed revenue allocation framework that accurately mirrors Nigeria’s evolving economic landscape and constitutional framework.
Addressing a panel discussion titled “Recalibrating Nigeria’s Revenue Allocation Formula” held recently in Abuja, Dr. Shehu highlighted that the current allocation formula, established in 1992, is outdated and fails to capture the nation’s contemporary fiscal demands, demographic changes, and governance dynamics.
He further noted that recent legislative updates to the RMAFC Act have granted the Commission authority to collaborate directly with private sector players, including oil firms, to verify and recover revenues owed to the Federation. Dr. Shehu emphasized that beyond just allocation, the focus on revenue mobilisation and transparency is crucial for sustainable national development.
Assuring that the revision process will prioritize equity, balance, and national unity, he called on all participants to set aside individual interests and engage as committed patriots.
“Our objective is to craft a formula that equips subnational governments to fulfill their constitutional duties efficiently while preserving national unity and economic stability. As we engage in this dialogue, let us act not as advocates of separate interests but as guardians of our collective future. The decisions we make today will directly influence the ability of governments to provide quality education, healthcare, and infrastructure to our people,” Dr. Shehu stated.
Senator Yahaya Abdullahi, Chairman of the Senate Committee on National Planning and Economic Affairs, also contributed, stressing that “Regardless of how innovative or technically sound proposals may be, without political unity and a shared vision for the nation, meaningful progress will remain out of reach.” He encouraged stakeholders to foster transparency and build trust to realize the reform goals.
Representing the Governor of Kwara State and Chairman of the Nigeria Governors’ Forum, Abdulrahman Abdulrazaq, Dr. Abdulateef Shittu praised RMAFC for establishing an impartial platform that facilitates constructive dialogue between federal and subnational governments. He reaffirmed the Forum’s commitment to supporting a just and practical revenue allocation formula.
Senator Abubakar Atiku Bagudu, Minister of Budget and Economic Planning, lauded the Commission’s efforts, acknowledging that revising the revenue formula is vital for the country’s stability. He remarked, “Our Constitution envisions collaboration among all government levels to enhance the welfare and security of Nigerians. True equity begins with effective revenue mobilisation, not just distribution.”
Hajiya Hadiza Bala Usman, Special Adviser to the President on Policy Coordination, called for a bold and definitive overhaul that aligns fiscal reforms with Nigeria’s broader development objectives.
The panel, moderated by Eugenia Abu, included distinguished experts such as Prof. Auwalu Yadudu, Dr. Iyobosa Uwugiaren, Prof. Nazifi Darma, and Prof. Muhammad Muttaka Usman. Their discussions spanned constitutional, legal, and economic dimensions, with a consensus on the need for a formula that encourages fiscal discipline, innovation, and accountability at the subnational level.
Several participants advocated for empowering subnational governments with greater responsibilities and resources to better serve their communities.
Concluding the event, Alhaji Kabir Mashi, OON, Chairman of the Revenue Allocation Formula Committee, expressed gratitude to all contributors for their insightful input. He assured that the Commission will incorporate these recommendations into a balanced, equitable, and sustainable revenue allocation framework for Nigeria.
