{"id":6710,"date":"2026-06-08T09:03:48","date_gmt":"2026-06-08T09:03:48","guid":{"rendered":"https:\/\/stakebridgeirpr.com\/media\/?p=6710"},"modified":"2026-06-08T09:03:48","modified_gmt":"2026-06-08T09:03:48","slug":"rmafc-begins-revenue-allocation-review-through-nationwide-data-verification-exercise","status":"publish","type":"post","link":"https:\/\/stakebridgeirpr.com\/media\/rmafc-begins-revenue-allocation-review-through-nationwide-data-verification-exercise\/","title":{"rendered":"RMAFC Begins Revenue Allocation Review Through Nationwide Data Verification Exercise"},"content":{"rendered":"

B<\/strong>y Olumide Johnson<\/strong><\/p>\n

 <\/p>\n

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), led by Dr. Mohammed Bello Shehu, Chairman of the Commission, has commenced a nationwide data verification exercise beginning with the South-East geopolitical zone as part of the ongoing review of Nigeria’s revenue allocation formula. Represented by Mrs. Omowumi Ogunlola, Commissioner representing Ekiti State, Shehu stated that the exercise is designed to validate and update critical socio-economic indicators used in determining how federally collected revenues are shared among the federal, state and local governments. The verification teams will engage ministries, departments and agencies as well as local government authorities to ensure the collection of accurate and current data. The exercise follows the federal government’s directive for comprehensive due diligence in developing a new revenue allocation formula and comes as the commission moves into an advanced stage of its review process.<\/p>\n

According to Shehu: \u201cOver 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.\u201d<\/p>\n

Responding, Alex Otti<\/strong>, Governor of Abia State, pledged full cooperation with the exercise while cautioning that revenue generation should ultimately receive greater attention than revenue sharing.<\/p>\n

Otti stated: \u201cResource 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.\u201d<\/p>\n

DECISION HIGHLIGHT<\/strong><\/p>\n

The RMAFC is attempting to recalibrate Nigeria’s fiscal federalism framework by updating the data foundations upon which revenue sharing decisions are based.<\/p>\n

DECISION MEMO \u00a0<\/strong><\/p>\n

The verification exercise is not merely a statistical exercise. It represents the most consequential stage of a broader debate over fiscal equity, resource distribution and economic realities within Nigeria’s federation.<\/p>\n

Nigeria’s current revenue allocation formula has remained largely unchanged despite significant shifts in demographics, infrastructure development, urbanisation, economic activity and security conditions across states and local governments. As a result, questions have increasingly emerged regarding whether existing allocation indices accurately reflect contemporary realities.<\/p>\n

The commission’s decision to undertake field verification suggests recognition that revenue-sharing outcomes are only as credible as the data upon which they are built. Population patterns have evolved, economic centres have shifted, infrastructure footprints have expanded and development disparities have changed. Any formula intended to promote equity must therefore be anchored on updated evidence rather than historical assumptions.<\/p>\n

The exercise also reveals a deeper policy tension. While the commission focuses on improving allocation fairness, Otti’s intervention shifts attention towards revenue generation. His argument reflects a growing concern among subnational governments that debates over distribution may become less relevant if dependence on federally collected oil revenues continues amid global energy transition pressures.<\/p>\n

The comments highlight two competing but complementary dimensions of fiscal reform. One focuses on how national revenue should be shared. The other focuses on how additional revenue should be created.<\/p>\n

The reference to digitised data collection processes and earlier training of state and local government officials indicates that the commission is attempting to strengthen institutional credibility and minimise disputes that often accompany revenue allocation reviews.<\/p>\n

Ultimately, the exercise signals that fiscal federalism in Nigeria is gradually moving from political negotiation towards evidence-based recalibration.<\/p>\n

DATA BOX<\/strong><\/p>\n

Institution<\/strong><\/p>\n