The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has commenced a nationwide data verification exercise in the Southeast as part of efforts to update key indices used in the allocation of revenue among the three tiers of government.
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The Chairman of RMAFC, Dr. Muhammad Shehu, disclosed this during a visit to Abia State Governor, Alex Otti, at Nvosi in Isiala Ngwa South Local Government Area.
Represented by the Commissioner representing Ekiti State on the commission, Mrs. Omowumi Ogunlola, Shehu said the exercise was in line with the commission’s constitutional mandate to periodically review the revenue allocation formula and ensure it reflects current socio-economic realities across the country.
What they are saying
According to Shehu, the verification exercise marks a critical stage in the review process, focusing on validating and updating data used in determining how national revenue is shared among federal, state, and local governments.
He explained that the allocation system relies on a range of indices designed to promote fairness, equity, and justice in the distribution of public resources.
- “Over time, socio-economic realities evolve. Population dynamics change, infrastructure expands, development gaps shift, and new challenges emerge.
- “It therefore becomes imperative that the data underpinning these indices are periodically verified and updated to reflect present-day realities,” he said.
The RMAFC chairman noted that the review of the revenue allocation formula had reached an advanced stage, making it necessary to verify the integrity and accuracy of existing data.
He recalled that the commission had trained state and local government officials on data management in 2022 and subsequently digitised its data collection processes to improve efficiency and reliability.
According to him, the verification team will work closely with ministries, departments and agencies (MDAs), as well as local government authorities, to ensure the collection of credible and up-to-date information.
Shehu appealed to the Abia State Government to facilitate access to relevant records, designate liaison officers, and provide support for the team’s operations across local government areas.
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Responding, Governor Alex Otti assured the commission of the state government’s full cooperation and support throughout the exercise.
He disclosed that officials of the state Ministry of Finance had already been directed to work closely with the verification team to ensure a smooth process.
The governor, however, stressed that while revenue allocation remains important, greater emphasis should be placed on strengthening revenue generation.
- “Resource distribution and allocation are important, but resource generation is even more important.
- “There may come a time when there will be little or no oil revenue to share,” Otti said.
He urged states to prepare for such a future by developing sustainable sources of internally generated revenue and reducing dependence on federal allocations.
The governor reiterated his long-standing advocacy for economic diversification, citing the global transition away from fossil fuels and the need for states to build resilient economies.
He encouraged the RMAFC delegation to visit Aba, describing the commercial city as a hub of innovation and entrepreneurship.
- “Our people are hardworking and innovative. There is hardly anything produced elsewhere that they cannot replicate and improve upon,” he said.
Abia highlights development strides
Also speaking, the Commissioner for Finance, Mr. Uwaoma Ukandu, said the verification exercise provided an opportunity for the state to showcase its developmental achievements.
According to him, the state has consistently allocated about 35% of its budget to education and healthcare, while internally generated revenue has more than tripled over the past three years due to fiscal reforms and improved revenue administration.
Ukandu added that members of the verification team had expressed admiration for the state’s progress in road infrastructure development and urban renewal projects.
What you should know
Last year, the Federal Government directed the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) to undertake a comprehensive due diligence process in the development of a new and more equitable revenue allocation formula for Nigeria.
The initiative forms part of broader efforts to reform the country’s fiscal framework and ensure a fairer distribution of resources among the federal, state, and local governments.
Nigeria’s current revenue allocation formula has remained largely unchanged for several years despite significant economic, demographic, and security developments across the country.
