FG Plans Salary Hike For Political Office Holders As RMAFC Reviews Revenue Sharing Formula

The Federal Government is considering a salary increase for political office holders as the Revenue Mobilisation Allocation Fiscal Commission (RMAFC) reviews the revenue sharing formula. RMAFC Chairman, Mohammed Shehu, stated that the current pay for President Bola Tinubu and ministers is unrealistic and inadequate, with ministers earning less than N1m monthly since 2008.

Shehu emphasized the need for better compensation to attract the best talents to public service. The Commission is also reviewing the vertical revenue allocation formula, which has remained unchanged since 1992.

Currently, the Federal Government receives the majority of federally collected revenue, leaving state and local governments dependent on the center. This review aims to reflect the current economic landscape and reduce the fiscal burden on state governments.

Previous attempts to revise the formula were stalled due to political resistance and concerns about the Federal Government losing its dominant share.