The Chairman, Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr Mohammed Shehu, has reaffirmed the commission's determination to produce a new, equitable, and data-driven revenue allocation formula that reflects Nigeria's current economic and constitutional realities.
Speaking at a panel discussion titled "Recalibrating Nigeria's Revenue Allocation Formula" in Abuja, Shehu said the existing formula approved in 1992 no longer reflects Nigeria's fiscal responsibilities, demographic shifts, or governance realities.
He explained that recent amendments to the RMAFC Act have empowered the commission to engage directly with private sector entities, including oil companies, in verifying and recovering revenues due to the federation. The chairman added that beyond allocation, revenue mobilisation and accountability remain central to achieving sustainable development.
In a statement, Shehu gave the assurance that the review will ensure fairness, balance, and national cohesion. He, therefore, urged participants to set aside personal interests as patriotic Nigerians.
"Our goal is to design a formula that empowers sub-national governments to meet their constitutional obligations effectively while maintaining national cohesion and macro-economic stability. As we deliberate today, let us approach this dialogue not as representatives of different interests but as custodians of shared destiny. 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," he said.
Speaking, Chairman of the Senate Committee on National Planning and Economic Affairs, Senator Yahaya Abdullahi, said: "No matter how brilliant the ideas or technical solutions are, without political consensus and a shared national vision, progress will remain elusive."
He urged stakeholders to build transparency and trust to achieve the desired reform.
Governor of Kwara State and chairman of the Nigeria Governors' Forum Abdulrahman Abdulrazaq, who was represented by Dr Abdulateef Shittu, commended RMAFC for creating a neutral platform for dialogue between the federal and sub-national governments while pledging the forum's support for a just and workable formula.
In his remarks, Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, commended the commission's effort and acknowledged that recalibrating the formula is key to national stability.
According to him, the constitution envisages co-operation among all tiers of government in advancing the welfare and security of the people.
"Equity must begin with revenue mobilisation, not mere allocation," he noted.
Earlier, Special Adviser to the President on Policy Co-ordination, Hajiya Bala Usman, called for a courageous and conclusive review that aligns fiscal reforms with Nigeria's development.
Some stakeholders on the occasion advised that the sub-nationals should be empowered to take more responsibilities and resources to take care of the people.