𝗡𝗲𝘄 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗙𝗼𝗿𝗺𝘂𝗹𝗮: 𝗥𝗠𝗔𝗙𝗖 𝗕𝗲𝗴𝗶𝗻𝘀 𝗖𝗿𝗶𝘁𝗶𝗰𝗮𝗹 𝗗𝗮𝘁𝗮 𝗩𝗲𝗿𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗔𝗰𝗿𝗼𝘀𝘀 𝗦𝘁𝗮𝘁𝗲𝘀

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has launched a comprehensive data verification exercise across all states and the Federal Capital Territory (FCT).

The move marks the final major hurdle before the unveiling of a new national revenue allocation formula.

The exercise, which began on Thursday, will see RMAFC teams fan out across the country to validate critical socio-economic indices that determine how federal revenues are shared among the three tiers of government.

According to a press statement issued by Maryam Yusuf, the commission’s Head of Information and Public Relations, the verification is aimed at updating decades-old data that currently underpins the sharing formula.

Speaking through the statement, the Chairman of RMAFC, Mohammed Shehu, explained that the move was long overdue.

He noted that Nigeria has undergone profound demographic and infrastructural changes, yet the indices used for revenue sharing—such as population, landmass, and basic socio-economic indicators—have not been systematically reviewed to reflect current realities.

“Accurate data is the backbone of fairness, equity, and national cohesion,” Shehu was quoted as saying. “This nationwide exercise represents our determination to build a more transparent and responsive revenue distribution system that serves the interests of all Nigerians.”

Why the verification matters now

The current revenue distribution formula allocates 52.6 per cent of federally collected revenues to the Federal Government, 26.7 per cent to state governments, and 20.6 per cent to local government councils, with one per cent each reserved for the FCT, ecological fund, natural resources, and stabilisation fund.

That formula has remained largely unchanged for more than three decades, despite repeated calls for a review.

Shehu acknowledged that the commission’s ongoing review of the vertical revenue allocation formula has already reached an advanced stage. However, he stressed that no new formula can be credible without fresh, verified data.

The current exercise therefore focuses on key indicators such as education and healthcare provision, internally generated revenue (IGR) capacity, and infrastructure development across states and local government areas.

“Over time, Nigeria has witnessed significant socio-economic transformations marked by population growth, expansion of infrastructure, urbanisation, and widening development gaps among regions,” Shehu added. “These evolving realities necessitate the validation of existing datasets to ensure fairness, transparency, and equity in revenue sharing.”

How the exercise will work

The commission explained that the verification would be carried out through a region-by-region rollout, involving the collection, validation, and reconciliation of critical data from Ministries, Departments, and Agencies (MDAs), as well as local government authorities and community stakeholders.

In each state, RMAFC teams will hold stakeholder engagement sessions designed to promote transparency, build trust, and ensure collaboration. The commission has also appealed to state governments, traditional institutions, civil society organisations, and community leaders to cooperate fully.

Shehu described the exercise as both a statutory obligation and a strategic initiative. “Credible, verified data remains the foundation of a fair and sustainable revenue allocation system,” he said. “The verification process will strengthen fiscal federalism and improve national development planning.”

A history of unfinished reviews

This is not the first time RMAFC has attempted to revise the revenue formula. About four years ago, the commission, under former Chairman Elias Mbam, presented a proposed vertical allocation formula to former President Muhammadu Buhari.

That proposal recommended 45.17 per cent for the Federal Government, 29.79 per cent for state governments, and 21.04 per cent for local governments. However, that review, like several previous attempts, failed to yield a final implemented outcome.

Observers note that the current leadership appears determined to avoid a similar fate by prioritising data integrity from the outset. By completing the verification exercise before presenting any final figures, RMAFC hopes to insulate the new formula from legal and political challenges that have derailed past efforts.

What happens next

The commission has not given a specific timeline for the completion of the verification exercise, but sources indicate that it is expected to wrap up within several weeks, after which a revised formula will be presented to the President and the National Assembly for approval.

Shehu urged all stakeholders to see the exercise as an opportunity rather than a threat. “The commission is committed to ensuring that Nigeria’s revenue allocation framework reflects the realities on the ground,” he said. “This is about building a system that serves all Nigerians fairly.”