The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has completed its comprehensive review of Nigeria’s revenue allocation formula and concluded the review of remuneration for political, public and judicial office holders.
The Commission’s Chairman, Dr. Mohammed Bello Shehu, OFR, disclosed this during an interactive session with members of the Nigerian Guild of Editors (NGE) in Lagos, where he outlined the agency’s major achievements and institutional reforms from 2023 to date.
Shehu said both the new revenue allocation formula and remuneration review had reached advanced stages of consideration by the appropriate authorities, potentially setting the stage for major changes in how Nigeria’s resources are shared among the three tiers of government and how public officials are remunerated.
He said RMAFC had strengthened its constitutional mandate of monitoring revenue, verifying derivation, coordinating fiscal matters and advising on revenue allocation and remuneration.
According to him, the Commission has placed greater emphasis on data integrity, inter-agency collaboration and ensuring a more equitable distribution of national revenue.
17 Oil Wells Reallocated From Imo To Rivers
Shehu revealed that RMAFC had intensified its monitoring of oil and gas production data to ensure accurate implementation of the constitutional 13 per cent derivation principle.
He said the Commission deployed verification exercises, geospatial mapping and collaboration with relevant agencies to resolve longstanding disputes over oil well attribution.
One major outcome, he disclosed, was the reallocation of 17 oil wells from Imo State to Rivers State, following the Supreme Court judgment on the matter.
He added that similar interventions had been carried out in Cross River, Akwa Ibom, Imo and Anambra states.
Improved gas production reporting, he said, had also enabled Enugu and Kogi states to benefit from derivation revenues.
The RMAFC chairman said the Commission had deepened collaboration with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigerian National Petroleum Company Limited (NNPCL), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), National Boundary Commission and the Office of the Surveyor-General of the Federation.
The objective, he explained, was to strengthen revenue monitoring, improve compliance and plug leakages capable of depriving governments of billions of naira.
RMAFC Targets Oil Theft, Pipeline Vandalism
Shehu also disclosed that the Commission was engaging the Ministry of Defence to tackle crude oil theft, pipeline vandalism and production losses, describing the challenges as serious threats to Nigeria’s revenue base.
He said the Commission was looking beyond the petroleum sector in its search for additional sources of national revenue.
According to him, RMAFC was exploring partnerships with the Federal Airports Authority of Nigeria (FAAN) and the National Space Research and Development Agency (NASRDA), including the deployment of satellite and geospatial technologies to identify untapped revenue opportunities.
Judicial Salaries Review Completed
On remuneration, Shehu disclosed that RMAFC had completed the review of salaries and allowances for judicial office holders, culminating in the enactment of the Judicial Office Holders (Salaries and Allowances) Act, 2025.
He said the review of remuneration for executive and legislative political and public office holders was also at an advanced stage.
According to him, an executive bill on the proposed Political and Public Office Holders (Salaries and Allowances) Act, 2026 is expected to be transmitted to the National Assembly.
But Shehu stressed that increased remuneration must come with increased accountability and improved performance.
He said better pay for public officials should ultimately translate into better service delivery to Nigerians, signalling that remuneration reforms cannot be separated from responsibility and performance.
New Revenue Formula Ready For Transmission
The RMAFC chairman described the review of Nigeria’s revenue allocation formula as one of the Commission’s most significant assignments.
He said the exercise was conducted through extensive consultations involving the federal, state and local governments, technical stakeholders and participants across the country.
The Commission, he explained, examined fiscal responsibilities, revenue trends and comparative experiences from other federal systems before producing a harmonised report and legislative proposals.
According to Shehu, the recommendations are now ready for transmission to the appropriate authorities.
The development could trigger a fresh debate over Nigeria’s longstanding revenue-sharing structure, particularly amid persistent demands by states and local governments for greater fiscal autonomy and a fairer distribution of national resources.
With RMAFC now signalling that both the revenue allocation formula and remuneration reforms are ready for the next stage, the ball is firmly in the court of the appropriate authorities to determine how—and when—the proposed changes will reshape Nigeria’s fiscal architecture.
