The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has officially launched the process of reviewing Nigeria’s Revenue Allocation Formula (RAF) to ensure a more equitable and responsive distribution of resources across the three tiers of government.
Speaking at a press briefing held on Monday, August 18, 2025, at the Shehu Musa Yar’Adua Centre in Abuja, RMAFC Chairman, Dr. Mohammed Bello Shehu, OFR, said the review had become necessary given the nation’s changing socio-economic and political realities.
“This marks the formal commencement of our constitutional duty to reassess the existing revenue-sharing framework,” Dr. Shehu stated. He explained that the last comprehensive review of the RAF was undertaken in 1992, with only executive adjustments introduced between 2002 and now.
Highlighting the urgent need for an overhaul, Dr. Shehu noted that recent constitutional amendments such as the devolution of power generation, railways, and correctional services to states have expanded the responsibilities of subnational governments without a corresponding fiscal adjustment.
“The review will help reposition fiscal federalism, address emerging financial pressures, and support sustainable economic growth,” he added.
Also speaking at the event, the Chairman of the Revenue Allocation Formula Committee and Federal Commissioner representing Katsina State, Kabir Muhammad Mashi, OON, assured that the process will be comprehensive and inclusive.
“This exercise goes beyond numbers; it is about equity and justice. We will engage stakeholders from the Presidency, National Assembly, State Governments, ALGON, the Judiciary, Civil Society, the private sector, and development partners to ensure the new formula is evidence-based and truly reflective of current realities,” Mashi said.
According to him, the Commission will adopt international best practices, empirical research, and data-driven approaches to deliver a fair and sustainable formula that strengthens Nigeria’s fiscal structure.
Stakeholders present at the briefing urged the Commission to prioritize true federalism in the review process and ensure that resource allocation supports infrastructure development nationwide.
RMAFC reaffirmed its commitment to conducting the exercise transparently to secure broad national acceptance of the outcome.