The Revenue Mobilisation Allocation and Fiscal Commission has said the ongoing review of Nigeria’s revenue allocation formula has reached an advanced stage, as it begins a nationwide data verification exercise to update the indices used in sharing revenue across the federation.
The disclosure was contained in a press statement by the Head of Information and Public Relations Unit of the commission, Maryam Yusuf, on Thursday.
Chairman of the commission, Mohammed Shehu, was quoted in the statement as saying, “The Commission is committed to ensuring that Nigeria’s revenue allocation framework reflects the realities on the ground. Accurate data is the backbone of fairness, equity, and national cohesion. This nationwide exercise represents our determination to build a more transparent and responsive revenue distribution system that serves the interests of all Nigerians.”
Goal of Review Exercise
He noted that the exercise was aimed at reviewing the factors and proxies used in the sharing of revenue among states and local governments, with a view to aligning allocations with current socio-economic conditions.
According to him, credible, verified data remains the foundation of a fair and sustainable revenue allocation system, and the verification process would strengthen fiscal federalism and improve national development planning.
The statement added, “He (Shehu) further disclosed that the current review of the national revenue allocation formula has reached an advanced stage, making the data verification exercise a critical step in safeguarding the integrity and reliability of the indices that will underpin future allocations.”
Shehu also stated that the exercise would have wide implications for fiscal management and balanced regional development, urging state governments, local authorities, traditional institutions, civil society organisations, and community leaders to cooperate fully with the commission’s teams.
The commission explained that the nationwide verification exercise would be carried out across all states and the Federal Capital Territory through a region-by-region rollout, involving the collection, validation, and reconciliation of critical socio-economic and infrastructural data.
It added that the exercise would focus on key indicators such as education and healthcare provision, internally generated revenue capacity, and infrastructure development across states and local government areas.
