FIC Report (Lagos State)— The Revenue Mobilisation Allocation and Fiscal Commission, RMAFC, has completed the comprehensive review of Nigeria’s Revenue Allocation Formula, setting the stage for a new fiscal framework for the sharing of federally collected revenues among the federal, state and local governments.
The Chairman of the Commission, Alhaji Mohammed Bello Shehu, disclosed this in Lagos during an interactive session with members of the Nigerian Guild of Editors, where he gave a detailed account of the Commission’s activities and reforms from 2023 to date.
According to a statement issued on Saturday by the Head of Information and Public Relations Unit of the Commission, Maryam Yusuf, Shehu said the review was the culmination of extensive nationwide consultations.
Shehu told the editors that the exercise followed months of engagement with the three tiers of government, technical stakeholders and other relevant institutions, adding that the Commission undertook a thorough assessment of fiscal responsibilities, revenue trends and comparative federal systems.
“The Commission has completed a comprehensive review of Nigeria’s Revenue Allocation Formula. It has completed the review of remuneration for judicial office holders, culminating in the enactment of the Judicial Office Holders (Salaries and Allowances) Act, 2025,” the RMAFC Chairman said.
He explained that the review has now been harmonised into a report with legislative proposals ready for transmission to the appropriate authorities for consideration and passage.
Shehu said the objective of the new formula is to enthrone a more equitable, just and sustainable revenue-sharing system that reflects Nigeria’s current economic realities and evolving governance responsibilities.
On the sensitive issue of pay for public officials, the RMAFC boss announced major milestones. He revealed that the review of remuneration for judicial office holders has been concluded and has already led to the enactment of the Judicial Office Holders (Salaries and Allowances) Act, 2025.
He further disclosed that the review of salaries and allowances for executive and legislative office holders has reached an advanced stage.
“Also, the review of remuneration for executive and legislative office holders is at an advanced stage, with an executive bill on the Political and Public Office Holders (Salaries and Allowances) Act, 2026 expected to be transmitted to the National Assembly,” Shehu stated.
He, however, cautioned that improved pay must come with improved performance, stressing that the reforms were not intended as mere pay rise.
“Remuneration reforms must be matched with accountability and performance. Improved pay should translate into improved service delivery,” he said.
Beyond the allocation formula and pay reviews, Shehu said the Commission has intensified its core mandate of blocking revenue leakages, particularly in the oil and gas sector.
He said RMAFC has strengthened monitoring of oil and gas production data to ensure strict and accurate application of the 13 per cent derivation principle. According to him, the Commission has deployed verification exercises, geospatial mapping and inter-agency collaboration to resolve long-standing discrepancies in oil well attribution.
Giving a breakdown of its interventions, the Chairman said one of the Commission’s landmark achievements was the reallocation of 17 oil wells from Imo State to Rivers State in compliance with a Supreme Court judgment.
He added that similar interventions had been concluded for Cross River, Akwa Ibom, Imo and Anambra states, while enhanced reporting and verification of gas production had enabled Enugu and Kogi states to begin benefiting from derivation revenues.
To achieve this, Shehu said, the Commission has deepened collaboration with key technical agencies including the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, NNPC Limited, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the National Boundary Commission and the Office of the Surveyor-General of the Federation.
He noted that the partnerships are aimed at improving revenue monitoring, resolving attribution disputes and strengthening compliance across the federation.
The Chairman also revealed that RMAFC is engaging the Ministry of Defence on the nagging issues of crude oil theft, pipeline vandalism and production losses, which he described as existential threats to national revenue.
Looking beyond oil, Shehu said the Commission is exploring new revenue frontiers through partnerships with the Federal Airports Authority of Nigeria, FAAN, and the National Space Research and Development Agency, NASRDA, including the deployment of satellite and geospatial technologies to identify and harness untapped revenue streams.
He said the reforms are part of a broader institutional transformation driven by data integrity, inter-agency synergy and fairer distribution of national wealth.
Shehu further disclosed that the Commission has recorded significant improvements in its institutional infrastructure, citing the rehabilitation of critical facilities, enhanced security systems and ongoing renovation of its headquarters, as well as improved staff welfare through better healthcare services and capacity development programmes.
He said the engagement with the Guild of Editors was deliberate, aimed at promoting transparency and deepening public understanding of the Commission’s constitutional mandate.
In a vote of thanks, the Chairman of the Public Affairs and Communication Committee and Federal Commissioner representing Kwara State, Ismail Muhammed Agaka, commended the media for its role in strengthening democratic accountability. Agaka reaffirmed the Commission’s commitment to sustained stakeholder engagement as it advances its fiscal and institutional reforms.
Other members of the Public Affairs and Communication Committee present at the Lagos parley included Federal Commissioners Peter Opara (Imo), Ekene Enefe (Anambra), Hadizatu Uwani Mustapha (Borno), Ahmed Waziri Hassan (Adamawa), Bob-Helen Inafa (Bayelsa), Oti Nkechi Linda (Abia), Prof Olusegun Adekunle Wright (Lagos) and Victor Eboigbe (Edo).
The RMAFC is a constitutional body charged with monitoring accruals into and disbursements from the Federation Account, reviewing the revenue allocation formula and determining appropriate remuneration for political, public and judicial office holders.
The completion of the review comes at a time when Nigeria’s fiscal structure is under intense pressure from rising expenditure, uneven revenue generation and growing demands by states and local governments for greater fiscal space, a development that now sets the stage for the Federal Government and the National Assembly to consider a new revenue sharing order.
Sourced and Reported by:
IYEDEH, Onowouzou David
CIO&PRO
15/08/2026
