Nigeria's Revenue Allocation Formula Review Advances Significantly

The Revenue Mobilization Allocation Fiscal Commission of Nigeria, led by Chairman Maryam Yusuf, is in the advanced stages of reviewing the country's revenue allocation formula. This process includes a nationwide data verification exercise aimed at updating the indicators used to share revenue among federal, state, and local governments.

The commission emphasizes that the current allocation framework, which stands at 52.6% for the federal government, 26.7% for states, and 20.6% for local councils, must reflect contemporary socio-economic conditions. The review is critical for establishing a fair and sustainable revenue allocation system, with the verification process designed to collect valid socio-economic data across various sectors, including education and healthcare.

The commission's efforts are intended to promote transparency and build trust among stakeholders, ensuring that future allocations are based on credible and accurate data. The last adjustment to the revenue distribution formula occurred three decades ago, highlighting the necessity for this review.