New Revenue Formula to Boost Nigeria’s Fiscal Federalism Balance
By Patience Ikpeme
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has embarked on developing a new revenue allocation formula aimed at reflecting Nigeria’s current economic and constitutional realities, signaling a major step toward strengthening fiscal federalism in the country.
Speaking at a recent panel discussion held at Transcorp Hilton Hotel, on Tuesday in Abuja, RMAFC Chairman Dr. Mohammed Bello Shehu, stated that, “The existing formula approved in 1992 no longer reflects Nigeria’s fiscal responsibilities, demographic shifts, or governance realities”.
He emphasized the Commission’s commitment to creating a data-driven, equitable formula that ensures fairness, balance, and national cohesion.Dr. Shehu also highlighted the recent empowerment of RMAFC through amendments to its Act, allowing direct engagement with private sector entities, including oil companies, for revenue verification and recovery. “Revenue mobilisation and accountability remain central to achieving sustainable development,” he added.
Senator Yahaya Abdullahi, Chairman of the Senate Committee on National Planning and Economic Affairs, underscored the importance of unity in this endeavor, saying, “No matter how brilliant the ideas or technical solutions are, without political consensus and a shared national vision, progress will remain elusive.” He called for transparency and trust among stakeholders to realize the reforms.
The Nigeria Governors’ Forum reaffirmed support for the initiative, with Dr. Abdulateef Shittu representing Kwara State Governor Abdulrahman Abdulrazaq, who praised RMAFC for providing a neutral platform for dialogue between federal and subnational governments. “We pledge our support for a just and workable formula,” Dr. Shittu said.
Senator Abubakar Atiku Bagudu, Minister of Budget and Economic Planning, described recalibrating the formula as key to national stability. He remarked, “Equity must begin with revenue mobilisation, not merely allocation,” emphasizing constitutional cooperation among government tiers for public welfare.Hajiya Hadiza Bala Usman, Special Adviser to the President on Policy Coordination, called for a courageous and conclusive review aligned with Nigeria’s development priorities.
Alhaji Kabir Mashi, Chairman of the Revenue Allocation Formula Committee, concluded by assuring that all recommendations would be integrated. “We are committed to delivering a fair, balanced, and sustainable revenue formula for Nigeria,” he said.This initiative positions Nigeria to strengthen fiscal federalism, foster national cohesion, and enhance government capacity to deliver essential services to its people effectively.
