The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has commenced a data verification exercise across the Southeast as part of efforts to update key indices used in reviewing Nigeria’s revenue allocation formula.
RMAFC Chairman, Dr. Muhammad Shehu, disclosed this during a visit to Abia State Governor, Alex Otti, in Nvosi, Isiala Ngwa South Local Government Area of Abia State.
Represented by the commissioner representing Ekiti State on the commission, Mrs. Omowumi Ogunlola, Shehu said the exercise aligns with RMAFC’s constitutional mandate to periodically review the revenue allocation formula to reflect prevailing socio-economic realities across the country.
He described the verification exercise as a critical phase of the review process aimed at validating and updating data used in determining the sharing of national revenue among the federal, state, and local governments.
According to him, the revenue allocation framework is built on several indices intended to promote fairness, equity, and justice in the distribution of public resources.
“Socio-economic realities change over time. Population dynamics evolve, infrastructure expands, development gaps shift, and new challenges emerge. It is therefore imperative that the data underpinning these indices are periodically verified and updated to reflect current realities,” he said.
Shehu noted that the review of the revenue allocation formula had reached an advanced stage, necessitating the verification of existing data to ensure its accuracy and integrity.
He recalled that the commission trained state and local government officials on data management in 2022 and later digitised its data collection processes to enhance efficiency and reliability.
The RMAFC chairman said the verification team would work closely with ministries, departments and agencies (MDAs), as well as local government authorities, to gather credible and up-to-date information.
He appealed to the Abia State Government to provide access to relevant records, designate liaison officers, and support the team’s activities across the state’s local government areas.
In his response, Governor Otti assured the commission of the state’s full cooperation, disclosing that officials of the Ministry of Finance had already been directed to work with the verification team to ensure a seamless exercise.
While acknowledging the importance of revenue allocation, the governor stressed the need for greater focus on revenue generation.
“Resource distribution and allocation are important, but resource generation is even more important. There may come a time when there will be little or no oil revenue to share,” Otti said.
He urged states to strengthen internally generated revenue and reduce dependence on federal allocations, citing the global shift away from fossil fuels and the need to build resilient economies through diversification.
Otti also encouraged members of the RMAFC delegation to visit Aba, describing the commercial city as a centre of innovation and entrepreneurship.
“Our people are hardworking and innovative. There is hardly anything produced elsewhere that they cannot replicate and improve upon,” he said.
Also speaking, the Commissioner for Finance, Mr. Uwaoma Ukandu, said the verification exercise offered an opportunity for Abia State to showcase its development achievements.
According to him, the state consistently allocates about 35 per cent of its budget to education and healthcare, while internally generated revenue has more than tripled over the past three years due to fiscal reforms and improved revenue administration.
Ukandu added that members of the verification team had expressed admiration for the state’s progress in road infrastructure and urban renewal projects.
Last year, the Federal Government directed RMAFC to undertake a comprehensive due diligence process toward developing a new and more equitable revenue allocation formula for Nigeria.
The initiative is part of broader efforts to reform the country’s fiscal framework and ensure a fairer distribution of resources among the three tiers of government.
Nigeria’s current revenue allocation formula has remained largely unchanged for years despite significant demographic, economic, infrastructure and security changes across the country.
