The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has completed its review of Nigeria’s revenue allocation formula and concluded work on the review of salaries and allowances for political and public office holders, with both proposals now awaiting consideration by the relevant authorities.
The Chairman of RMAFC, Dr. Mohammed Bello Shehu, disclosed this during an interactive session with members of the Nigerian Guild of Editors (NGE) in Lagos, where he gave an account of the commission’s activities and reforms since 2023.
Shehu said the review of the revenue allocation formula was one of the commission’s major assignments because of its potential impact on how resources are shared among the federal government, states and local governments.
He said the exercise involved consultations with the three tiers of government, technical experts and other stakeholders across the country, as well as studies of revenue patterns, the responsibilities of different levels of government and how revenue is shared in other federal systems.
According to him, the process has produced a harmonised report and proposed legislation which are now ready to be forwarded to the appropriate authorities.
“The objective is to establish a more equitable and sustainable revenue-sharing framework that reflects current economic and governance realities,” Shehu said.
The proposed changes could become significant for the three tiers of government because the revenue allocation formula determines how funds from the Federation Account are distributed among the Federal Government, states and local governments.
Shehu said RMAFC had also made progress in reviewing the remuneration of political, public and judicial office holders.
He recalled that the review of the salaries and allowances of judicial officers had already been completed and resulted in the enactment of the Judicial Office Holders (Salaries and Allowances) Act, 2025.
He said the review covering executive and legislative political and public office holders had also reached an advanced stage, with an executive bill expected to be sent to the National Assembly.
The proposed legislation is known as the Political and Public Office Holders (Salaries and Allowances) Act, 2026.
Shehu, however, said higher remuneration for public officials must be accompanied by greater responsibility and better performance.
He said improved pay should ultimately lead to better public services and stronger accountability rather than becoming an end in itself.
The RMAFC chairman also spoke extensively on the commission’s efforts to ensure that states receive the correct amount of revenue from the 13 per cent derivation principle applicable to oil-producing areas.
He said the commission had increased its monitoring of oil and gas production figures and was using verification exercises, geospatial mapping and cooperation with relevant government agencies to resolve disputes over the ownership and attribution of oil wells.
One of the cases involved 17 oil wells that were moved from Imo State to Rivers State following a Supreme Court judgment.
Shehu said RMAFC had carried out similar interventions involving Cross River, Akwa Ibom, Imo and Anambra states.
He added that improvements in the reporting of gas production had also enabled Enugu and Kogi states to receive derivation revenues to which they were entitled.
The commission’s activities have involved closer cooperation with major institutions in the oil and gas sector, including the Nigerian Upstream Regulatory Commission (NUPRC), Nigerian National Petroleum Company Limited (NNPCL) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
RMAFC has also been working with the National Boundary Commission and the Office of the Surveyor-General of the Federation in efforts to improve the accuracy of revenue data and resolve issues affecting revenue distribution.
Shehu said the commission was also engaging the Ministry of Defence over crude oil theft, pipeline vandalism and other factors responsible for losses in oil production.
He described these problems as major threats to government revenue, noting that lower production means less money available for distribution to the different tiers of government.
The commission is also looking beyond petroleum revenue in its search for additional sources of government income.
Shehu said RMAFC was working with the Federal Airports Authority of Nigeria (FAAN) and the National Space Research and Development Agency (NASRDA) on opportunities to use satellite and geospatial technology to identify revenue sources that may not have been properly captured.