RMAFC concludes review of revenue formula for office holders

The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) has finalized a thorough examination of Nigeria's Revenue Allocation Formula and completed the assessment of remuneration for political, public, and judicial office holders. Dr. Mohammed Bello Shehu, the Commission's chairman, announced this during a recent meeting with the Nigerian Guild of Editors in Lagos.

Both reviews are currently under consideration by relevant authorities and are pivotal to the fiscal reform initiatives the Commission has been pursuing since 2023.

The review of the Revenue Allocation Formula was carried out through extensive discussions with the three levels of government, technical stakeholders, and other participants nationwide. The process encompassed a scrutiny of fiscal responsibilities, revenue patterns, federal systems comparisons, leading to a harmonized report and legislative proposals prepared for transmission to the appropriate authorities.

Shehu explained that the proposed framework aims to foster a more equitable and sustainable distribution of national revenue, aligning with Nigeria's current economic and governance landscape.

Regarding compensations, the Commission has concluded its evaluation of salaries and allowances for judicial office holders, leading to the enactment of the Judicial Office Holders (Salaries and Allowances) Act, 2025. The assessment of remuneration for executive and legislative office holders is also at an advanced stage, with an executive bill on the Political and Public Office Holders (Salaries and Allowances) Act, 2026 anticipated to be sent to the National Assembly.

Shehu emphasized that any increase in remuneration must be paired with accountability and performance, asserting that higher pay should lead to better public service delivery.

Furthermore, the Commission has intensified efforts to enhance revenue monitoring, especially within the oil and gas sector, to ensure a precise application of the 13 percent derivation principle. This has been achieved through verification exercises, geospatial mapping, and collaboration with relevant agencies, facilitating the resolution of longstanding oil well attribution disputes.

Notable reallocations include 17 oil wells from Imo State to Rivers State, as mandated by a Supreme Court judgment. Similar efforts have been implemented in Cross River, Akwa Ibom, Imo, and Anambra states, while enhanced gas production reporting has allowed Enugu and Kogi states to reap the benefits of derivation revenues.