RMAFC concludes revenue formula, judicial pay review

Nigeria's Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has completed a comprehensive review of the nation's Revenue Allocation Formula. This move paves the way for a new framework governing how revenues are shared among the federal, state, and local governments.

The commission also announced the conclusion of its review for judicial office holders' remuneration, which has resulted in the enactment of the Judicial Office Holders (Salaries and Allowances) Act, 2025. Reviews for executive and legislative office holders are in advanced stages, with an executive bill for the Political and Public Office Holders (Salaries and Allowances) Act, 2026, anticipated for transmission to the National Assembly.

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The Commission has completed a comprehensive review of Nigeria’s Revenue Allocation Formula. It has completed the review of remuneration for judicial office holders, culminating in the enactment of the Judicial Office Holders (Salaries and Allowances) Act, 2025. Also, the review of remuneration for executive and legislative office holders is at an advanced stage, with an executive bill on the Political and Public Office Holders (Salaries and Allowances) Act, 2026 expected to be transmitted to the National Assembly.

RMAFC Chairman Mohammed Bello Shehu highlighted that the objective behind these reviews is to foster a more equitable and sustainable revenue-sharing system, adaptable to the country's evolving economic and governance landscape. He stressed that any increases in public office holders' remuneration must be directly linked to enhanced accountability and improved service delivery, stating that better pay should not be an end in itself but a catalyst for better performance.

Shehu shared these updates during an interactive session with the Nigerian Guild of Editors in Lagos, presenting an overview of the commission's activities and reforms since 2023. The completed revenue allocation review involved extensive consultations with all three tiers of government, technical stakeholders, and relevant institutions nationwide. The process included assessments of fiscal responsibilities, revenue trends, and comparative federal systems, leading to a harmonized report and legislative proposals ready for submission.

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