The federal government has directed the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) to conduct thorough due diligence in producing a new equitable revenue allocation formula.
Secretary to the Government of the Federation (SGF), Senator George Akume, gave the directive in Abuja during a meeting with RMAFC chairman, Dr. Mohammed Bello Shehu, and his team.
Akume said the formula must reflect Nigeria’s fiscal realities and guarantee irreducible minimum allocations to key agencies, especially the Ministry of Defence, for safeguarding national security.
“I am confident in the capacity of the Commission to deliver a comprehensive revenue allocation formula and assure you of my Office’s support,” Akume said.
In response, Shehu said a draft formula was being finalised and would be submitted to the SGF for review before presentation to the National Assembly.
The current formula, unchanged for years, allocates 52.68 per cent of revenue to the federal government, 26.72 per cent to states, and 20.60 per cent to local governments.
The proposed review is expected to cut federal government allocation while raising shares for states and councils. It also aims to address disparities in sectoral funding and improve public service delivery.
Although RMAFC had pledged implementation in early 2024, the process stalled. Shehu assured stakeholders that the commission was working to complete the task.
“The review will ensure fairness in resource distribution, reduce fiscal imbalance, and strengthen governance efficiency,” he said.
