The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has announced the completion of its review of Nigeria's Revenue Allocation Formula, paving the way for a new framework for distributing revenues among the Federal, state, and local governments. This significant development was disclosed by RMAFC Chairman, Mohammed Bello Shehu, during an interactive session with members of the Nigerian Guild of Editors in Lagos.

Shehu stated that the review process was comprehensive and involved extensive consultations with various stakeholders, including the three tiers of government and relevant institutions across the country. He emphasized that the review aimed to create a more equitable and sustainable revenue-sharing system that reflects Nigeria's evolving economic and governance realities.

In addition to the revenue allocation review, the commission has also finalized the remuneration review for judicial office holders, which has resulted in the enactment of the Judicial Office Holders (Salaries and Allowances) Act, 2025. Furthermore, the review of salaries and allowances for executive and legislative office holders is nearing completion, with an executive bill on the Political and Public Office Holders (Salaries and Allowances) Act, 2026, expected to be presented to the National Assembly soon.

Shehu highlighted the necessity of linking salary increases to improved service delivery, stating that remuneration reforms must be matched with accountability and performance. He remarked, "Improved pay should translate into improved service delivery," underscoring the importance of ensuring that increased compensation does not become an end in itself.

The RMAFC has also intensified its monitoring of oil and gas production data to ensure that the 13 percent derivation principle is accurately applied. This includes verification exercises and collaboration with relevant agencies to address discrepancies in oil well attribution, ensuring that states receive the revenues due to them. Notably, the commission has reallocated 17 oil wells from Imo State to Rivers State in compliance with a Supreme Court judgment, with similar interventions carried out in other states such as Cross River and Akwa Ibom.

In addition to these measures, the RMAFC is actively engaging with the Ministry of Defence to address ongoing challenges such as crude oil theft and pipeline vandalism, which pose significant threats to government revenue. The commission is also exploring new revenue opportunities beyond the petroleum sector, including partnerships with the Federal Airports Authority of Nigeria and the National Space Research and Development Agency.

The RMAFC's efforts are part of a broader initiative to enhance data integrity, strengthen inter-agency collaboration, and ensure a fairer distribution of national revenue. Shehu noted improvements in the commission's institutional infrastructure, including the rehabilitation of critical facilities and enhanced staff welfare through better healthcare services and training programs.

The engagement with the media, particularly the Nigerian Guild of Editors, aims to promote transparency and foster a better understanding of the RMAFC's constitutional mandate. Ismail Muhammed Agaka, the Chairman of the Public Affairs and Communication Committee, commended the media's role in strengthening democratic accountability and reaffirmed the commission's commitment to ongoing stakeholder engagement as it advances its fiscal and institutional reforms.

As Nigeria's fiscal structure faces increasing pressure from rising expenditures and uneven revenue generation, the completion of the revenue allocation review sets the stage for potential restructuring of how federally collected revenues are distributed among the three tiers of government.