The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has formally declared open the review of Nigeria’s current Revenue Allocation Formula (RAF), which determines how revenue is shared among the federal, state, and local governments.

The Chairman of RMAFC, Dr. Mohammed Bello Shehu, OFR, made the announcement at a press conference held at the Shehu Musa Yar’Adua Centre, Abuja, on Monday. He said the review is a constitutional responsibility and has become necessary to address the evolving socio-economic, political, and fiscal realities of the country.

According to him, the last comprehensive review was conducted in 1992, while subsequent adjustments were made through executive orders between 2002 and 2023. He noted that since then, Nigeria has undergone profound demographic, economic, and institutional changes. Recent constitutional amendments, including the devolution of responsibilities such as electricity, railways, and correctional services to subnational governments, have increased their financial and administrative burdens.

Dr. Shehu explained that the aim of the review is to design a fair, just, and equitable formula that reflects the current responsibilities, needs, and capacities of the three tiers of government. He assured that the process will be inclusive, transparent, and data-driven, with consultations involving the Presidency, National Assembly, state governors, ALGON, the judiciary, MDAs, civil society organisations, traditional rulers, the private sector, and development partners.

\"This situation has made it essential to reevaluate the structure of fiscal federalism in order to foster economic growth in individual states, enable them to become more independent from the centre, and ensure equity, responsiveness, and sustainability,\" he stated.

The RMAFC Chairman called on the media and Nigerians at large to support the exercise, describing it as a patriotic duty crucial for building public trust, ensuring accountability, and keeping citizens informed.

\"This is a historic opportunity to shape a more resilient and equitable fiscal system for Nigeria, and we shall not fail,\" he said, before formally declaring the review exercise open.