RMAFC completes revenue sharing review, proposes new pay

Nigeria's Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has concluded a comprehensive review of the nation's Revenue Allocation Formula, signaling a potential shift in how revenues are shared among federal, state, and local governments. This review is a significant step toward establishing a new framework for fiscal distribution.

In addition to the revenue formula, the commission has finalized its review of remuneration for judicial officeholders, leading to the enactment of the Judicial Office Holders (Salaries and Allowances) Act, 2025. Reviews for executive and legislative officeholders are also in advanced stages, with an anticipated executive bill for the Political and Public Office Holders (Salaries and Allowances) Act, 2026 to be presented to the National Assembly.

RMAFC Chairman Mohammed Shehu presented these updates during an interactive session with the Nigerian Guild of Editors. He explained that the revenue allocation review involved extensive consultations with all government tiers and stakeholders, assessing fiscal responsibilities, revenue trends, and comparative systems to create a more equitable and sustainable model reflecting current economic realities.

Shehu stressed that while remuneration reforms are progressing, they must be intrinsically linked to improved service delivery and accountability. "Remuneration reforms must be matched with accountability and performance. Improved pay should translate into improved service delivery," he stated, cautioning against viewing salary increases as an end in themselves.

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Remuneration reforms must be matched with accountability and performance. Improved pay should translate into improved service delivery.