🔥 Trending RMAFC Completes Review of Revenue Allocation Formula: What You Need to Know

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) in Nigeria has recently completed a comprehensive review of the country's revenue allocation formula ¹²³⁵. This review is a significant undertaking, as the current formula has been in place for a considerable period, with some sources indicating it hasn't seen a major change in 33 years ⁶, while others suggest it's been under review after 30 years ⁹.

Context and Purpose of the Review

The primary objective of the RMAFC's review is to establish a revenue-sharing formula that is "fair, just, and equitable" ⁷¹⁰. This new formula aims to accurately reflect the current responsibilities, needs, and capacities of Nigeria's three tiers of government: federal, state, and local ⁷¹⁰. The review also seeks to align the allocation with the constitutional roles of these governmental levels ¹⁰.

Dr. Mohammed Shehu, the Chairman of RMAFC, has emphasized that the commission is mandated by Paragraph 32(b) of its terms to "review, from time to time, the revenue allocation formulae and principles in operation to ensure conformity with changing realities" ⁸. This highlights the necessity of updating the formula to address contemporary economic and social dynamics.

Key Aspects of the Review

Current Allocation Formula

Before the recent review, the existing revenue allocation formula distributed funds as follows ⁴:

• Federal Government: 52.6%
• State Governments: 26.7%
• Local Governments: 20.6%

Focus Areas for Change

The review is expected to assess service delivery obligations and other relevant factors to ensure a more balanced distribution ⁷. There is an explicit aim to potentially target higher allocations for state and local governments ¹⁰, which would represent a shift from the current structure.

Status of the Review

As of August 2026, the RMAFC has completed its review of the revenue allocation formula ¹²³⁵. Additionally, the commission has also finished its review of the remuneration for political, public, and judicial office holders ¹²³. The recommendations from this comprehensive review are now awaiting consideration and approval by the appropriate authorities ⁵. The Secretary to the Government of the Federation (SGF) has expressed confidence in the commission's ability to deliver a robust framework and has pledged support in finalising the process ⁶.