RMAFC vows to deliver equitable revenue formula
By Matthew Denis, Abuja
The Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr. Mohammed Bello Shehu, has reaffirmed the Commission’s commitment to producing a new, equitable, and data-driven Revenue Allocation Formula (RAF) that accurately reflects Nigeria’s current economic and constitutional realities.
Speaking at a panel discussion titled, “Recalibrating Nigeria’s Revenue Allocation Formula,” held on Tuesday, October 14, 2025, at the Transcorp Hilton Hotel in Abuja, Dr. Shehu stated unequivocally that the existing formula, approved in 1992, is obsolete and no longer reflects the nation’s fiscal responsibilities, demographic shifts, or modern governance realities.
Dr. Shehu emphasized that beyond merely allocating funds, revenue mobilisation and accountability are central to achieving sustainable development.
He explained that recent amendments to the RMAFC Act now empower the Commission to directly engage with private sector entities, including oil companies, in verifying and recovering revenues owed to the Federation.
"Our goal is to design a formula that empowers subnational governments to meet their constitutional obligations effectively while maintaining national cohesion and macroeconomic stability," Dr. Shehu said, urging participants to prioritize the national interest.
He added, "The choices we make here will shape the capacity of governments to deliver education to our children, healthcare to our citizens, and infrastructure to our communities."
The forum brought together key political and economic figures who stressed the need for political will and transparency in the reform process.
Senator Yahaya Abdullahi, CON, Chairman of the Senate Committee on National Planning and Economic Affairs, noted, “No matter how brilliant the ideas or technical solutions are, without political consensus and a shared national vision, progress will remain elusive.”
The Executive Governor of Kwara State and Chairman of the Nigeria Governors’ Forum (NGF), His Excellency Abdulrahman Abdulrazaq, represented by Dr. Abdulateef Shittu, commended RMAFC for creating a neutral platform and pledged the NGF’s support for a just and workable formula.
The Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu acknowledged that recalibrating the formula is critical to national stability.
He stressed, “Equity must begin with revenue mobilisation, not merely allocation.”
Adding her voice, Hajiya Hadiza Bala Usman, Special Adviser to the President on Policy Coordination, called for a courageous and conclusive review that aligns fiscal reforms with Nigeria’s development agenda.
The panel discussion, moderated by Eugenia Abu, featured experts who urged a formula that promotes fiscal responsibility, innovation, and subnational accountability.
Stakeholders at the event also advised that subnational governments should be empowered with both more responsibilities and resources to cater to the needs of the populace.
In his vote of thanks, Alhaji Kabir Mashi, OON, Chairman of the Revenue Allocation Formula Committee, assured participants that the Commission will integrate all valuable recommendations into a fair, balanced, and sustainable revenue formula for the nation.