RMAFC proposes Five-Year review cycle for Nigeria’s Revenue Allocation Formula

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has proposed that Nigeria’s revenue allocation formula should be reviewed every five years to enhance its productivity and relevance.

This was disclosed in a communique issued after a three-day retreat for newly inaugurated members and management staff of the commission, held in Uyo. The communique was jointly signed by RMAFC Chairman, Dr. Mohammed Shehu, and the Secretary, Mr. Joseph Nwaze.

The commission revealed that the current revenue allocation formula had remained unchanged for 16 years and had become due for a comprehensive review. Presenting the communique, Mr. Ismail Agaka, who chairs the commission’s Public Affairs and Communication Committee, stressed that it was necessary to amend Section 162 (2) of the constitution to clearly state the timeline within which the President should present a revenue allocation formula proposal to the National Assembly.

RMAFC also recommended a constitutional amendment that would allow local government councils to receive allocations directly from the Federation Account. The commission explained that this would align with the Supreme Court’s July 11, 2024, judgment granting financial autonomy to local councils.

Additionally, it called for constitutional amendments to include local government chairmen and councillors among those listed in the 1999 Constitution to benefit from the remuneration package handled by the commission.

The commission reaffirmed its commitment to carrying out its constitutional duties, particularly in monitoring revenue accruals to ensure that generating agencies make accurate and timely remittances.

It also suggested the establishment of a National Revenue Dashboard, which would interface with revenue-generating agencies for real-time, digital monitoring of revenue inflows.

The retreat was held under the theme “Understanding the Role of RMAFC and other Stakeholders, Agencies in Nation Building.”