FG directs RMAFC to expedite revenue allocation formula review

The federal government has directed the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), demanding an expedited review of the nation’s revenue allocation formula, which has remained unchanged for over two decades.

The order was given by the Secretary to the Government of the Federation (SGF), Senator George Akume, during the inaugural plenary session following the swearing-in of newly appointed federal commissioners in Abuja on Tuesday.

Senator Akume emphasised the urgency of the situation, stating, “The existing formula has not been reviewed in over two decades. A new equitable formula is critical for national economic stability and development.” He then proceeded to outline specific deliverables expected from the RMAFC, stressing the government’s commitment to fiscal reform.

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Akume categorically instructed the commissioners to prioritise strengthening revenue monitoring and accountability, ensuring strict compliance from all revenue-generating agencies with collection and remittance laws.

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He stressed the necessity of blocking revenue leakages and imposing sanctions on defaulters, while tasking the Commission with enhancing non-oil revenue mobilisation, focusing on sectors such as solid minerals and taxation to reduce the nation’s over-reliance on crude oil earnings.

Earlier in the session, RMAFC Chairman Dr. Mohammed Bello Shehu acknowledged the commission’s pivotal role in Nigeria’s economic governance, emphasising its responsibility to ensure fair and transparent revenue allocation among the three tiers of government.

He stated, “As a constitutional body, the Commission plays a pivotal role in the nation’s economic governance by ensuring the fair and transparent allocation of revenue among the three tiers of government and we will do everything possible to ensure an equitable revenue sharing formula,” he noted.