RMAFC to begin review of revenue allocation

Omeiza Bilal

The Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has said it would commence the process for the review of the revenue allocation formula between the three tiers of government.

RMAFC Chairman Mohammed Shehu, who disclosed this at a press conference Monday in Abuja, added that the review became necessary following current economic realities.

Th revenue formula was last review in 1992.

The RMAFC Chairman explained that the review aims to produce a fair, just, and equitable revenue-sharing formula that reflected the current responsibilities, needs, and capacities of the three tiers of governments in line with the constitutional roles.

Under the current revenue allocation formula, the Federal Government gets a share of 52.6 per cent, 26.7 per cent for the state governments, and 20.6 per cent is allocated to the local governments.

The committee also allotted one per cent each to the Federal Capital Territory, ecological fund, natural resources, and the stabilisation fund under the vertical revenue allocation.

Quoting 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 review the revenue allocation formulae in line with changing realities, Shehu said, “In 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.

“As you may be aware, since that time, Nigeria has undergone profound transformations demographically, economically, and constitutionally,” he said.

the RMAFC Chairman assured that the commission would carefully assess the needs, service delivery obligations, fiscal performance, and developmental disparities, adding that the review would be inclusive, data-driven, and transparent.

“It 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.

“The commission is also committed to integrating cutting-edge research, empirical data, and international best practices in its analysis,” he added.