By Christopher Tom, Uyo
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has recommended a periodic review of Nigeria’s revenue allocation formula every five years in line with constitutional provisions.
This recommendation was announced during a three-day retreat held in Uyo, Akwa Ibom State. Addressing journalists at the end of the retreat, the Chairman of the Commission, Dr. Mohammed Shehu—represented by Mr. Ismail Agaka, Chairman of the Public Affairs and Communication Committee—emphasised the urgent need for a review of the allocation formula to reflect current economic realities.
Dr. Shehu noted that the existing revenue formula has remained unchanged for over 16 years, despite significant changes in the nation’s fiscal landscape. He stressed that the review aligns with the 1999 Constitution and is necessary to ensure fair and equitable distribution of national resources.
Among the key recommendations from the retreat was the amendment of Section 162(2) of the Constitution to include a specific timeframe within which the President must present the Commission’s proposal on the revenue allocation formula to the National Assembly upon receipt. Additionally, the retreat called for the amendment of Section 162(6) to mandate direct allocation of funds to local governments from the Federation Account, in accordance with the Supreme Court ruling of July 11, 2024, on local government financial autonomy.
Another major proposal was the inclusion of Local Government Chairmen and Councillors among the beneficiaries of the remuneration package determined by the Commission. The communique, endorsed by the Secretary of the Commission, Mr. Nwaze Okechukwu, stated:
> “There is urgent need to review the revenue allocation formula to reflect changing realities as enshrined in the 1999 Constitution, considering the fact that the current formula has been in existence for about 16 years.
> “The Local Government Chairmen, Councillors, and other political and public office holders are not currently listed among the beneficiaries of the remuneration package determined by the RMAFC.
> “According to the spirit and letter of the Constitution, the advice of the RMAFC on the remuneration package of political, public, and judicial office holders is binding on the Federal and State governments.”
The Commission also recommended the establishment of a National Revenue Dashboard to interface with all revenue-generating agencies for digital, real-time monitoring of revenue inflows.
Furthermore, the retreat proposed the separation of the Office of the Accountant General of the Federation from the Office of the Accountant General of the Federal Government. It suggested that the Office of the Accountant General of the Federation should be domiciled within the RMAFC as a federal oversight body.
The Commission reaffirmed its commitment to intensifying its constitutional mandate of monitoring revenue accruals to the Federation Account. It pledged to enhance mechanisms for fiscal management, including advisories on revenue, expenditure, and debt management.