RMAFC Advances Review of Nigeria's Revenue Allocation Formula

The Revenue Mobilization Allocation Fiscal Commission (RMAFC), chaired by Moham Shehu, is at an advanced stage in reviewing Nigeria's revenue allocation formula. This review includes a nationwide data verification exercise aimed at updating the distribution of revenue shares among federal, state, and local governments.

The commission's commitment is to ensure that the revenue allocation framework reflects current socio-economic realities, supported by credible and verified data. The exercise will involve collecting and reconciling critical socio-economic and infrastructural data across various regions.

The last adjustment to the revenue distribution formula was made three decades ago, with the current distribution standing at 52.6% for the federal government, 26.7% for states, and 20.6% for local councils. The commission aims to align the allocation with changing socio-economic conditions and has engaged stakeholders to promote transparency and collaboration.

The review process is crucial for safeguarding the integrity of future allocations and enhancing fiscal management across regions.