RMAFC Concludes Revenue Formula, Review of Salaries, Allowances for Political, Public Officer

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has finalized its examination of Nigeria’s revenue allocation formula and completed its review of salaries and allowances for political and public office holders, said Dr. Mohammed Bello Shehu, RMAFC’s Chairman. The proposals are now awaiting approval from the relevant authorities.

During an interactive session in Lagos with members of the Nigerian Guild of Editors, Shehu explained the commission’s work since 2023. The review of the revenue allocation formula, he said, was a key focus due to its potential impact on resource sharing among federal, state, and local governments. The exercise entailed consultations with the three tiers of government, technical experts, and various stakeholders, alongside studies of revenue patterns, responsibilities, and other federal systems.

A harmonized report and proposed legislation resulted from this process, ready for forwarding to authorities. “The goal is to establish a more equitable and sustainable revenue-sharing framework that reflects current economic and governance realities,” Shehu stated. The proposed changes could significantly affect how funds from the Federation Account are distributed among the three tiers of government.

Additionally, the RMAFC has made progress in reviewing the remuneration for political, public, and judicial office holders. The review of judicial officers’ salaries and allowances led to the enactment of the Judicial Office Holders (Salaries and Allowances) Act, 2025. An executive bill for the review of executive and legislative office holders is expected to be sent to the National Assembly.

However, Shehu emphasized that increased remuneration for public officials should come with greater responsibility and better performance, ultimately leading to improved public services and accountability. The commission has also focused on ensuring states receive the correct revenue share from the 13 per cent derivation principle applicable to oil-producing areas.

This includes increased monitoring of oil and gas production figures, verification exercises, geospatial mapping, and cooperation with government agencies. Notable interventions have been made in states affected by Supreme Court rulings, such as 17 moved oil wells from Imo to Rivers State. Improvements in gas production reporting have enabled Enugu and Kogi states to receive their rightful derivation revenues.

RMAFC has collaborated closely with institutions in the oil and gas sector, including the Nigerian Upstream Regulatory Commission, Nigerian National Petroleum Company Limited, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority. The commission has also worked with the National Boundary Commission and the Office of the Surveyor-General of the Federation to enhance revenue data accuracy and resolve distribution issues.

Furthermore, RMAFC is addressing issues related to crude oil theft, pipeline vandalism, and other factors affecting oil production. The commission is seeking additional revenue sources by collaborating with the Federal Airports Authority of Nigeria and the National Space Research and Development Agency on using satellite and geospatial technology to identify potential revenue sources.