The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) said it has completed a comprehensive review of Nigeria’s Revenue Allocation Formula and the remuneration of political, public and judicial office holders, even as both processes are now at advanced stages of consideration by the appropriate authorities.

Chairman of RMAFC, Dr Mohammed Bello Shehu, disclosed during an interactive session with members of the Nigerian Guild of Editors (NGE) in Lagos, at the weekend, when he presented an overview of the Commission’s achievements and institutional progress from 2023 to date.

Although he did not reveal details of the new formula, there have been calls for a horizontal formula that would reflect the expanded sub-nationals and increase responsibilities. The template was last reviewed in 1992 after which six additional states were created.

Shehu said the period under review was 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.

With the President’s basic salary still pegged at around N1.5 million, he said the remuneration of public officials is not in tune with the economic realities.

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.

Shehu described the review of the Revenue Allocation Formula as one of the Commission’s most significant assignments, noting that it was undertaken after extensive consultations with all tiers of government, technical stakeholders and nationwide town halls.

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.

According to him, the objective is to establish a more equitable and sustainable revenue-sharing framework that reflects current economic and governance realities.

Shehu also 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 said the review of remuneration of 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 said remuneration reforms must be matched with accountability and performance, noting that improved pay should translate into improved service delivery.

The RMAFC boss explained that the Commission had intensified monitoring of oil and gas production data to ensure accurate application of the 13 per cent derivations.

He noted that through verification exercises, geospatial mapping and inter-agency collaboration, the Commission has resolved several long-standing oil well attribution issues, including the reallocation of 17 oil wells from Imo to Rivers state in line with a Supreme Court judgment.

He added that similar interventions had been made 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 said RMAFC had strengthened collaboration with key institutions including 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 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 the challenges as major threats to national revenue.

Beyond the petroleum sector, Shehu said the Commission was exploring new revenue opportunities through partnerships with the Federal Airports Authority of Nigeria (FAAN), among others, to identify additional revenue sources.