The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has officially commenced a review of Nigeria’s Revenue Allocation Formula (RAF) to address changes in the country’s socio-economic and constitutional landscape.

The exercise was announced at a press conference held on Monday, August 18, 2025, at the Shehu Musa Yar’Adua Centre, Abuja. RMAFC Chairman, Dr. Mohammed Bello Shehu, OFR, described the review as a constitutional responsibility made urgent by Nigeria’s evolving demographic, economic, and governance realities.

“This important press conference marks the formal unveiling of the exercise to review the current Revenue Allocation Formula for sharing revenue amongst the three tiers of government in Nigeria,” Dr. Shehu said.

He noted that the last comprehensive review of the RAF took place in 1992, with subsequent adjustments issued through executive orders from 2002 to date. He highlighted that recent constitutional amendments, which devolved functions such as power generation, railways, and correctional services to state and local governments, have increased financial and administrative responsibilities at the subnational level.

“The recent constitutional amendments…have placed financial and administrative burdens on them. This situation has made it essential to reevaluate the structure of fiscal federalism to foster economic growth and ensure sustainability,” he explained.

Kabir Muhammad Mashi, OON, Chairman of the Revenue Allocation Formula Committee and Federal Commissioner representing Katsina State, said the review process will be rigorous and inclusive.

“This review is not just about figures; it is about equity and justice in resource allocation. We will engage critical stakeholders ranging from the Presidency, National Assembly, State Governments, ALGON, the Judiciary, Civil Society, the Private Sector, and Development Partners—to ensure that the new formula is data driven and reflective of Nigeria’s current economic realities,” he stated.
Dr. Shehu added that the Commission will rely on research, empirical data, and international best practices to guide the review, aiming to strengthen Nigeria’s fiscal federalism while ensuring fairness across the three tiers of government.

The RMAFC also emphasized that the process will be conducted transparently to secure broad national acceptance of the outcome.

Some stakeholders at the event urged the Commission to ensure that revenue allocations are linked to infrastructural development and genuine federalism in practice.

Maryam Umar Yusuf, Head of Information and Public Relations at RMAFC, said the Commission remains committed to an open and consultative process.