RMAFC Moves To Review Revenue Sharing Formula

RMAFC Moves To Review Revenue Sharing Formula

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has begun the process of reviewing the revenue allocation formula that determines how funds are shared among the federal, state, and local governments.

The move was announced in Abuja on Monday by the chairman of the commission, Mohammed Shehu, who said the current arrangement no longer reflects the country’s realities.

He explained that the last review was carried out in 1992, and since then, Nigeria has experienced major political, economic, and demographic changes.

Under the existing formula, the federal government receives 52.6 per cent, states take 26.7 per cent, while local governments get 20.6 per cent.

In addition, one per cent each is allocated to the Federal Capital Territory, ecological fund, natural resources, and stabilisation fund.

Shehu stated that the new review is expected to produce a fair and balanced system that matches the present responsibilities and needs of all levels of government.

He noted that recent constitutional amendments have transferred more duties, such as power generation, railway management, and prisons, to states, creating fresh financial demands that must be addressed in the new formula.

The commission said it will consult widely with key stakeholders, including the presidency, national assembly, state governors, traditional rulers, civil society, and the private sector.

It added that the process will be guided by data, research, and international best practices to ensure fairness and sustainability.