* Says Enugu, Kogi Now Benefit From Gas Derivation
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The Revenue Mobilisation Allocation and Fiscal Commission has completed a comprehensive review of Nigeria’s Revenue Allocation Formula, setting the stage for consideration of a new framework for sharing federally collected revenues among the Federal, state and local governments.
The Commission has also concluded the review of remuneration for judicial office holders, while the review of salaries and allowances for executive and legislative political office holders has reached an advanced stage.
Chairman of RMAFC, Mohammed Bello Shehu, disclosed the developments during an interactive session with members of the Nigerian Guild of Editors in Lagos, where he presented an overview of the Commission’s activities, reforms and interventions from 2023 to date.
In a statement issued on Saturday by the Head of the Information and Public Relations Unit, Maryam Yusuf, Shehu said the review of the revenue allocation formula followed extensive consultations with the three tiers of government, technical stakeholders and relevant institutions across the country.
According to him, the exercise involved an assessment of the fiscal responsibilities of the different tiers of government, revenue trends and comparative federal systems.
The process culminated in a harmonised report and legislative proposals which, according to the Commission, are now ready for transmission to the appropriate authorities.
“The Commission has completed a comprehensive review of Nigeria’s Revenue Allocation Formula. It has completed the review of remuneration for judicial office holders, culminating in the enactment of the Judicial Office Holders (Salaries and Allowances) Act, 2025.
“Also, the review of remuneration for executive and legislative office holders is 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,” Shehu said.
The RMAFC chairman explained that the objective of the revenue formula review was to develop a more equitable and sustainable system of revenue sharing that reflects Nigeria’s changing economic, fiscal and governance realities.
On remuneration, Shehu confirmed that the Commission’s review of the salaries and allowances of judicial officers had culminated in the enactment of the Judicial Office Holders (Salaries and Allowances) Act, 2025.
He added that work on the remuneration of executive and legislative office holders was nearing completion, with the proposed Political and Public Office Holders (Salaries and Allowances) Act, 2026 expected to be forwarded to the National Assembly as an executive bill.
Shehu, however, stressed that improved remuneration for public office holders must be accompanied by greater accountability and better performance.
“Remuneration reforms must be matched with accountability and performance. Improved pay should translate into improved service delivery,” he said.
Beyond revenue sharing and remuneration, the RMAFC chairman said the Commission had intensified monitoring of oil and gas production data to ensure the accurate application of the 13 per cent derivation principle benefiting oil and gas-producing states.
According to him, RMAFC has carried out verification exercises, deployed geospatial mapping and strengthened collaboration with relevant agencies to address discrepancies in the attribution of oil wells and ensure that affected states receive revenues due to them.
Shehu identified the reallocation of 17 oil wells from Imo State to Rivers State, in compliance with a Supreme Court judgment, as one of the major interventions undertaken by the Commission.
He said similar interventions had taken place in Cross River, Akwa Ibom, Imo and Anambra states.
Improved reporting of gas production, he added, had also enabled Enugu and Kogi states to benefit from derivation revenues.
To strengthen revenue monitoring and resolve attribution disputes, the Commission has deepened collaboration with the Nigerian Upstream Petroleum Regulatory Commission, NNPC Limited, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the National Boundary Commission and the Office of the Surveyor-General of the Federation.
Shehu said the partnerships were intended to improve the integrity of revenue data, resolve disputes over the location and ownership attribution of petroleum resources and strengthen compliance across the sector.
He further disclosed that RMAFC was engaging the Ministry of Defence over crude oil theft, pipeline vandalism and production losses, which he described as significant threats to government revenues.
The Commission is also exploring opportunities to expand Nigeria’s revenue base beyond the petroleum industry.
According to Shehu, RMAFC is considering partnerships with the Federal Airports Authority of Nigeria and the National Space Research and Development Agency, including the use of satellite and geospatial technologies to identify additional revenue opportunities.
He said these initiatives formed part of a broader strategy to improve data integrity, enhance inter-agency collaboration and ensure a fairer and more transparent distribution of national revenues.
The chairman also highlighted improvements in RMAFC’s institutional infrastructure, including the rehabilitation of critical facilities, strengthening of security systems and ongoing renovation of the Commission’s headquarters.
He said staff welfare had equally received attention through improved healthcare services, professional training and capacity-development programmes aimed at strengthening the Commission’s technical expertise.
Shehu explained that the engagement with the Nigerian Guild of Editors was designed to deepen transparency and improve public understanding of RMAFC’s constitutional responsibilities.
He reaffirmed the Commission’s commitment to proactive communication, data-driven reforms and stronger collaboration with the media in promoting transparency and accountability in public finance.
In his vote of thanks, Chairman of RMAFC’s Public Affairs and Communication Committee and Federal Commissioner representing Kwara State, Ismail Muhammed Agaka, commended the media for its role in strengthening democratic accountability.
Agaka reaffirmed the Commission’s commitment to sustained engagement with relevant stakeholders as it continues implementing its fiscal and institutional reforms.
Other members of the Public Affairs and Communication Committee present at the event included Federal Commissioners Peter Opara representing Imo State; Ekene Enefe, Anambra; Hadizatu Uwani Mustapha, Borno; Ahmed Waziri Hassan, Adamawa; Bob-Helen Inafa, Bayelsa; Oti Nkechi Linda, Abia; Prof. Olusegun Adekunle Wright, Lagos; and Victor Eboigbe, Edo.
RMAFC is a constitutional body responsible, among other functions, for monitoring revenue accruals into and disbursements from the Federation Account, periodically reviewing the revenue allocation formula and determining appropriate remuneration for political and public office holders.
The completion of the revenue allocation review comes amid continuing debate over Nigeria’s fiscal structure, increasing expenditure obligations, disparities in revenue-generating capacity among the tiers of government and growing demands by states and local governments for greater fiscal capacity.
With the review now completed and the harmonised proposals ready for transmission, attention will shift to the appropriate authorities, including the Federal Government and the National Assembly, as Nigeria considers possible changes to the formula governing the distribution of federally collected revenue among the Federal, state and local governments.
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