RMAFC Completes Revenue Sharing Review in Nigeria: New Framework on Horizon

• The Revenue Mobilisation Allocation and Fiscal Commission has completed its review of Nigeria's revenue allocation formula.
• Remuneration reforms are underway, with a focus on judicial officeholders and executive and legislative officeholders.
• A new framework for revenue sharing is expected to be implemented, prioritizing equity and sustainability.

The commission has deployed verification exercises, geospatial mapping, and collaboration with relevant agencies to address discrepancies in oil well attribution and ensure that states receive the revenues due to them.

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has concluded its review of Nigeria's revenue allocation formula, marking a significant step towards a more equitable and sustainable revenue-sharing system. The commission's chairman, Mohammed Shehu, disclosed that the review involved extensive consultations with the three tiers of government, technical stakeholders, and other relevant institutions across the country. This exercise aimed to assess fiscal responsibilities, revenue trends, and comparative federal systems, ultimately leading to a harmonised report and legislative proposals ready for transmission to the appropriate authorities.

The RMAFC has also completed its review of remuneration for judicial officeholders, resulting in the enactment of the Judicial Office Holders (Salaries and Allowances) Act 2025. The commission's chairman emphasized that salary increases must be accompanied by better service delivery, as improved remuneration should not be treated as an end in itself. Furthermore, the review of remuneration for executive and legislative officeholders is at an advanced stage, with an executive bill on the Political and Public Office Holders (Salaries and Allowances) Act 2026 expected to be transmitted to the National Assembly.

The completed revenue allocation review paves the way for a new framework that will guide the sharing of revenues among federal, state, and local governments. The RMAFC chairman highlighted the importance of creating a system that is more equitable and sustainable, taking into account the changing economic and governance realities in the country. This development comes amid long-running concerns over the adequacy of remuneration for public officeholders and the need to balance improved compensation with accountability and performance.

This development may require lawyers to advise clients on the implications of the new remuneration framework, particularly with regards to salary increases and accountability measures. They should also be aware of the potential impact on revenue allocation and distribution among federal, state, and local governments.

Source: Original reporting via The Nigerian Guild of Editors