RMAFC Concludes Revenue Formula, Review of Salaries, Allowances for Political, Public Officer

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has finalized its review of Nigeria's revenue allocation formula and the remuneration packages for political and public office holders. These completed proposals are now pending review by the appropriate government bodies.

RMAFC Chairman Dr. Mohammed Bello Shehu stated that the revenue allocation formula review was a significant undertaking due to its impact on resource distribution among federal, state, and local governments. The process involved extensive consultations with all government tiers, technical experts, and stakeholders nationwide. It also included studies on revenue patterns, governmental responsibilities, and revenue-sharing practices in other federal systems. The outcome is a harmonized report and proposed legislation ready for submission.

Shehu explained that the objective is to establish a more equitable and sustainable revenue-sharing framework that aligns with current economic and governance realities. These proposed changes could significantly affect the three tiers of government, as the formula dictates the distribution of funds from the Federation Account.

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The objective is to establish a more equitable and sustainable revenue-sharing framework that reflects current economic and governance realities.

Regarding remuneration, RMAFC has already completed the review for judicial officers, leading to the enactment of the Judicial Office Holders (Salaries and Allowances) Act, 2025. A review for executive and legislative political and public office holders is also in its advanced stages, with an executive bill, the Political and Public Office Holders (Salaries and Allowances) Act, 2026, expected to be sent to the National Assembly. Shehu emphasized that increased pay for public officials must be coupled with greater responsibility and improved performance, ultimately leading to better public services and accountability.

The commission has also focused on ensuring states receive their correct share of revenue from the 13 percent derivation principle for oil-producing areas. RMAFC has intensified its monitoring of oil and gas production figures and employs verification exercises, geospatial mapping, and inter-agency cooperation to resolve disputes over oil well ownership.

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Higher remuneration for public officials must be accompanied by greater responsibility and better performance. Improved pay should ultimately lead to better public services and stronger accountability rather than becoming an end in itself.