RMAFC To Engage Presidency, NASS, Others In Revenue Formula Review

The Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr Mohammed Bello Shehu, on Monday, declared that the commission has formally commenced the process of reviewing Nigeria’s Revenue Allocation Formula (RAF).

Shehu, who addressed a press conference in Abuja, said the review would reflect the country’s evolving socio-economic and constitutional realities.

To this end, he said that the commission would engage in broad-based consultations with critical stakeholders, including the presidency, national assembly, state governors, ALGON, the judiciary, MDAs, civil society organisations, traditional rulers, and others.

Shehu also assured that the commission will carefully assess the needs, service delivery obligations, fiscal performance, and developmental disparities across the country.

“Let me state clearly that this review will be inclusive, data-driven, and transparent. It will involve broad-based consultations with critical stakeholders, including the presidency, national assembly, state governors, ALGON, the judiciary, MDAs, civil society organisations, traditional rulers, the organised private sector, and development partners,” he said.

The chairman of the commission said the exercise was a constitutional duty that must be undertaken to ensure equity in revenue sharing among the federal, state, and local governments.

Shehu recalled that the last comprehensive review of the formula was conducted in 1992, with subsequent modifications made through executive orders between 2002 and the date.

He noted that Paragraph 32(b), Part I of the Third Schedule of the 1999 Constitution (as amended) empowers the Commission to “review, from time to time, the revenue allocation formulae and principles in operation to ensure conformity with changing realities.”

“In line with this constitutional responsibility and response to the evolving socio-economic, political, and fiscal realities of our nation, the Commission has resolved to initiate the process of reviewing the revenue allocation formula to reflect emerging socio-economic realities,” he added.

The Chairman highlighted recent constitutional amendments by the 9th National Assembly, which devolved certain responsibilities from the Exclusive to the Concurrent Legislative List, including electricity generation, transmission and distribution, railways, and correctional centres.

According to him, this has placed “financial and administrative burdens on subnational governments”, making it essential to reevaluate Nigeria’s fiscal federalism.

“This situation has made it essential to reevaluate the structure of fiscal federalism to foster economic growth in individual states, enabling them to become independent from the central government and ensuring equity, responsiveness, and sustainability,” Shehu said.

He explained that the goal of the review is to “produce a fair, just, and equitable revenue-sharing formula that reflects the current responsibilities, needs, and capacities of the three tiers of government, Federal, State, and Local Governments, in line with the constitutional roles.”

The RMAFC boss further pledged that the Commission would integrate “cutting-edge research, empirical data, and international best practices” in its analysis to deliver a formula that promotes fairness and sustainability.

RMAFC To Engage Presidency, NASS, Others In Revenue Formula Review is first published on The Whistler Newspaper