RMAFC concludes revenue formula, judicial pay review

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has finalized the review of Nigeria's Revenue Allocation Formula, which lays the foundation for a revised framework for revenue sharing among federal, state, and local governments. Additionally, the commission concluded the review of remuneration for judicial office holders and announced that the review of executive and legislative office holders' salaries and allowances is nearing completion.

Chairman of RMAFC, Mohammed Bello Shehu, provided an update during a meeting with the Nigerian Guild of Editors in Lagos, detailing the commission's progress since 2023. The revenue allocation review was conducted through extensive consultations with various stakeholders and yielded a harmonized report with legislative proposals, ready for submission to the relevant authorities.

The objective of this reform is to establish a more equitable and sustainable revenue-sharing system that accounts for evolving economic and governance conditions. The chairman also highlighted the completion of the judicial remuneration review, resulting in the enactment of the Judicial Office Holders (Salaries and Allowances) Act, 2025.

The review of executive and legislative office holders' remuneration is nearing completion, with an executive bill on the Political and Public Office Holders (Salaries and Allowances) Act, 2026 anticipated to be forwarded to the National Assembly. Shehu emphasized that salary enhancements must be coupled with improved service delivery, stating that increased compensation should translate into better services.

Beyond the revenue formula and remuneration reviews, the commission has intensified its monitoring of oil and gas production data to ensure adherence to the 13 per cent derivation principle. Notable interventions include reallocating oil wells, improved gas production reporting, and enhanced collaboration with regulatory bodies to bolster revenue monitoring and resolve disputes.

Furthermore, RMAFC is exploring partnerships with other government agencies and agencies to identify additional revenue sources, including satellite and geospatial technologies to detect new opportunities. The reforms are part of the commission's broader strategy to improve data integrity, enhance inter-agency collaboration, and achieve a fairer distribution of national revenue.