*The Nigerian Revenue Mobilisation Allocation and Fiscal Commission explains the ongoing review is aimed at producing a fair, just, and equitable revenue-sharing formula that reflects the current responsibilities, needs, and capacities of the three tiers of government in line with their constitutional roles

Isola Moses | 绿帽献妻

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) Monday, August 18, 2025, affirmed the process for review of the Revenue Allocation Formula (RAF) between the Federal, states, and local governments has commenced.

Mohammed Shehu, Chairman of the RMAFC, who announced this at a news conference in Abuja, confirmed the current review has become necessary in view of the current socio-economic realities since the last review done 1992.

Shehu stated the ongoing review of the Revenue Allocation Formula is aimed at producing a fair, just, and equitable revenue-sharing formula that reflected the current responsibilities, needs, and capacities of the three tiers of governments in accordance with their constitutional roles.

绿帽献妻 reports that in regard to the current revenue allocation formula, the Federal Government of Nigeria receives a share of 52.6 percent, 26.7 percent for the state governments, while 20.6 percent is allocated to the Local Government Councils (LGCs).

Besides, the RMFAC allocates a percent each to the Federal Capital Territory, Ecological Fund, Natural Resources, and the Stabilisation Fund under the vertical revenue allocation.

The Chairman of RMFAC as well referenced Paragraph 32 (b), Part I of the Third Schedule of the 1999 Constitution of the Federal Republic of Nigeria (as amended), which mandates the RMAFC to 鈥渞eview, from time to time, the revenue allocation formulae and principles in operation to ensure conformity with changing realities.鈥�

Shehu said: 鈥淚n line with this constitutional responsibility, and in response to the evolving socio-economic, political, and fiscal realities of our nation, the commission has resolved to initiate the process of reviewing the revenue allocation formula to reflect emerging socio-economic realities.

鈥淎s you may be aware, since that time, Nigeria has undergone profound transformations demographically, economically, and constitutionally.鈥�

The recent constitutional amendments by the Ninth National Assembly (NASS), which devolved certain responsibilities from the Exclusive List to the Concurrent Legislative List, such as generation, transmission, and distribution of electricity; railways and prisons (correctional centres) have placed financial and administrative burdens on sub-national governments, stated he.

Shehu: Review involves consultations with critical stakeholders

According to him, the development has made it important to review the structure of fiscal federalism in Nigeria, to foster economic growth in individual states, enabling them to become independent from the Federal Government and ensuring equity, responsiveness, and sustainability.

On the modus operandi of the Committee鈥檚 assignment, Shehu explained: 鈥淚t will involve broad-based consultations with critical stakeholders, including the presidency, national assembly, state governors, ALGON, the judiciary, MDAs, civil society organisations, traditional rulers, the organised private sector, and development partners.鈥�

He, therefore, assured Nigerians that the Commission would carefully assess the needs, service delivery obligations, fiscal performance, and developmental disparities.

The review will be inclusive, data-driven, and transparent, Shehu declared.

The Chairman added: 鈥淭he Commission is also committed to integrating cutting-edge research, empirical data, and international best practices in its analysis.鈥�

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