The Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr. Mohammed Bello Shehu, has disclosed that the Commission has completed a comprehensive review of Nigeria’s Revenue Allocation Formula and concluded work on the review of remuneration for political, public and judicial office holders, with both processes now at advanced stages of consideration by the appropriate authorities.
Dr. Shehu made the disclosure during an interractive session with members of the Nigerian Guild of Editors (NGE) in Lagos, where he presented an overview of the Commission’s achievements and institutional progress from 2023 to date.
He said the period under review had been marked by significant fiscal reforms, with the Commission strengthening its constitutional mandate of revenue monitoring, derivation verification, fiscal coordination, and advisory functions on remuneration and revenue allocation.
According to him, RMAFC has focused on improving data integrity, enhancing inter-agency collaboration, and ensuring equitable distribution of national revenue across the three tiers of government.
Dr. Shehu explained that the Commission had intensified monitoring of oil and gas production data to ensure accurate application of the 13 percent derivation principle. He noted that through verification exercises, geospatial mapping and inter-agency collaboration, the Commission resolved several long-standing oil well attribution issues, including the reallocation of 17 oil wells from Imo State to Rivers State in line with a Supreme Court judgment.
He added that similar interventions had been undertaken in Cross River, Akwa Ibom, Imo and Anambra States, while improved gas production reporting had enabled Enugu and Kogi States to benefit from derivation revenues.
The Chairman further said that RMAFC had strengthened collaboration with key institutions including NUPRC, NNPCL, NMDPRA, the National Boundary Commission, and the Office of the Surveyor-General of the Federation to improve revenue monitoring and compliance.
He also disclosed ongoing engagement with the Ministry of Defence to address crude oil theft, pipeline vandalism and production losses, describing them as major threats to national revenue.
Beyond the petroleum sector, Dr. Shehu said the Commission was exploring new revenue opportunities through partnerships with FAAN and NASRDA, including the use of satellite and geospatial technologies to identify additional revenue sources.
Dr. Shehu confirmed that the Commission had completed the review of remuneration for judicial office holders, culminating in the enactment of the Judicial Office Holders (Salaries and Allowances) Act, 2025.
He added that the review of remuneration for executive and legislative office holders was also at an advanced stage, with an executive bill on the Political and Public Office Holders (Salaries and Allowances) Act, 2026 expected to be transmitted to the National Assembly.
He stressed that remuneration reforms must be matched with accountability and performance, noting that improved pay should translate into improved service delivery.
On the subject of the review of the Revenue Allocation Formula, Dr Shehu described it as one of the Commission’s most significant assignments, noting that it was undertaken through extensive consultations with all tiers of government, technical stakeholders, and nationwide engagements.
He said the exercise involved analysis of fiscal responsibilities, revenue trends, and comparative federal systems, resulting in a harmonised report and legislative proposals now ready for transmission to the appropriate authorities.
