The Revenue Mobilisation Allocation and Fiscal Commission has formally commenced the process of reviewing Nigeria’s current Revenue Allocation Formula (RAF) to ensure equity, fairness, and responsiveness to the changing social economic realities of the country
Speaking at a press conference held at the Shehu Musa Yar’Adua Centre, Abuja, on Monday, August 18, 2025, the RMAFC Chairman, Dr. Mohammed Bello Shehu, OFR, described the exercise as a constitutional responsibility that has become imperative in light of Nigeria’s evolving socio-economic and political landscape.
According to him, “This important press conference marks the formal unveiling of the exercise to review the current Revenue Allocation Formula for sharing revenue amongst the three tiers of government in Nigeria.”
Dr. Shehu disclosed that the last comprehensive review of the RAF was carried out in 1992, with subsequent modifications through executive orders from 2002 to date.
Highlighting the need for a fresh review, he noted that Nigeria has experienced significant demographic , economic and constitutional change.
“The recent constitutional amendments, which devolved responsibilities such as power generation, railways, and correctional services to subnational governments, have placed financial and administrative burdens on them. This situation has made it essential to reevaluate the structure of fiscal federalism to foster economic growth and ensure sustainability.” He said.
The Chairman emphasised that the Commission aims to produce 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.
In his remarks, the Chairman of the Revenue Allocation Formula Committee and Federal Commissioner representing Katsina State, Kabir Muhammad Mashi, OON, assured Nigerians that the process will be both rigorous and inclusive.
“This review is not just about figures; it is about equity and justice in resource allocation. We will engage critical stakeholders ranging from the Presidency, National Assembly, State Governments, ALGON, the Judiciary, Civil Society, the Private Sector, and Development Partners—to ensure that the new formula is data driven and reflective of Nigeria’s current economic realities,” he stated.
He further noted that the Commission would rely on cutting-edge research, empirical data, and international best practices to guide the review, with the ultimate aim of strengthening Nigeria’s fiscal federalism.”
The RMAFC reaffirmed its commitment to conducting the exercise transparently and inclusively to guarantee national acceptance of the outcome.
Some stakeholders at the occasion called on the Commission to ensure true federalism in the discharge of its responsibilities and ensure that funds are tied to infrastructural development.
Signed
Maryam Umar Yusuf, mnipr
Head, Information and Public Relations Unit
RMAFC
