FIC Report (Abia State) – The Revenue Mobilization Allocation and Fiscal Commission (RMAFC), a key Federal Government agency constitutionally mandated to monitor revenue accruals, review revenue allocation formulas, and ensure equitable distribution of national resources among the three tiers of government, has commenced a nationwide data verification exercise in Abia State aimed at reviewing the existing revenue sharing formula across the country.
As the exercise commenced, Governor Alex Otti called for deliberate and concerted efforts towards alternative revenue generation by states to reduce Nigeria’s overdependence on crude oil earnings, warning that the future sustainability of states could be threatened if proactive measures are not adopted.
Governor Otti made the call while receiving a delegation from the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) at Government House, Umuahia, during the commission’s ongoing nationwide verification of data used in determining revenue allocation among states and local government areas.
The Governor, while acknowledging the importance of resource allocation and distribution, stressed that resource generation remains more critical, insisting that governments at all levels must begin to prioritize internally generated revenue and economic productivity.
“I have already heard the view that resource distribution and allocation is important, but resource generation is even more important,” Governor Otti stated.
Reflecting on his long-held concerns over Nigeria’s dependence on crude oil, Otti recalled that as a newspaper columnist in 2018, he had questioned what would become of the country if crude oil ceased to be economically viable.
According to him, the outbreak of COVID-19 shortly after validated those fears, as global demand for crude oil collapsed and producing countries struggled to find buyers.
“In one of my interventions, I used to write a column every other Monday, and I think it was in 2018 that I made the argument that if we woke up one morning and oil had suddenly disappeared or dried up, or it was no longer a commodity people wanted to buy, then we would have a problem,” he said.
He recalled that during the COVID-19 pandemic, some oil-producing nations practically searched for buyers due to declining global demand, emphasizing that Nigeria must urgently prepare for a post-oil economy.
“A more fundamental issue would be how we make our states independent and able to generate enough revenue just in case there is no money to share. It may not be today, but it will happen someday,” the Governor warned.
Governor Otti further observed that many countries across the world have already adopted policies aimed at phasing out fossil fuels by 2040, stressing the need for Nigeria to strategically align with global economic realities by diversifying its revenue base.
Welcoming the delegation to Abia State, the Governor assured the commission of the full support and cooperation of the state government to ensure the successful execution of the national assignment.
Earlier, the Chairman of the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), Dr. Muhammad Shehu, said the visit marked the official commencement of a critical national assignment focused on verifying and updating data used in revenue allocation among states and local governments.
Represented by the Federal Commissioner representing Ekiti State, Hon. Omowumi Ogunlola, the RMAFC Chairman explained that the exercise aligns with the constitutional mandate of the commission, which empowers it to periodically review the revenue allocation formula to reflect emerging national realities.
He appealed for the cooperation of the Abia State Government through the provision of relevant records and data, as well as the designation of competent liaison officers to ensure the success of the verification process.
According to him, the commission would collaborate closely with relevant Ministries, Departments and Agencies (MDAs) and local government authorities in the state to guarantee accurate, transparent, and credible data collection reflective of realities on ground.
Ogunlola also commended Governor Otti’s leadership style, particularly his commitment to people-centered governance and programmes that prioritize the welfare of citizens, especially women.
Also speaking, the Commissioner for Finance, Mr. Uwaoma Ukandu, disclosed that the RMAFC team had been in Abia since Sunday and was particularly focused on assessing the state’s efforts toward improving revenue generation.
He noted that special attention was being given to the health and education sectors, which remain priority areas under the Governor Otti administration.
Among members of the delegation was the Federal Commissioner representing Abia State at RMAFC, Mrs. Linda Nkechi-Oti, while the Chief of Staff to the Governor, Pastor Caleb Ajagba, alongside other top government functionaries, joined Governor Otti in receiving the visiting delegation.
Observers believe the nationwide verification exercise could significantly influence future revenue allocation formulas and strengthen fiscal planning across states as Nigeria continues to seek sustainable alternatives to oil dependency.
Abiakam Gloria Ify HOC FIC Umuahia Abia State.
5th June,2026.
