Nigeria’s Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has kicked off a nationwide data verification exercise aimed at reviewing the current revenue allocation formular and promoting fairness in the nation’s fiscal system.
Specifically, the exercise is designed to review the factors and proxies used currently in sharing national revenue among the federal, state, and local governments and by so doing, ensure the distribution of resources aligns with contemporary socio-economic realities.
In a statement issued on Thursday and signed by Head, Information and Public Relations Unit of the commission, Maryam Yusuf, the Chairman of the Commission, Mohammed Shehu, was quoted as describing the initiative as a landmark step towards fortifying fiscal federalism and improving national development planning.
Noting that the integrity of the revenue sharing system relies heavily on the quality of the information used to calculate indices, the RMAFC chairman assured that “the Commission is committed to ensuring that Nigeria’s revenue allocation framework reflects the realities on the ground” .
- Advertisement -
He maintained that “accurate data is the backbone of fairness, equity, and national cohesion, stressing that the nationwide exercise represents the Commission’s determination to build a more transparent and responsive revenue distribution system that serves the interests of all Nigerians.”
Describing credible and verified information as the essential foundation for a sustainable fiscal system, Shehu solicited the cooperation of the sub-national authorities, traditional institutions, and civil society organizations and ordinary Nigerians with the commission’s verification teams during the exercise nationwide
He expressed optimism that the results of this exercise would have far-reaching implications for national planning, fiscal management, and balanced regional development, adding that the exercise aligns with the commission’s statutory mandate to boost institutional credibility of the revenue sharing formular and support evidence-based policymaking at national and subnational levels of government.
Shehu pointed out that the current framework relied on indices such as population, landmass, and development indicators, all of which require periodic reviews to remain relevant.
On why the verification exercise has become imperative, he said: “Over time, Nigeria has witnessed significant socio-economic transformations marked by population growth, expansion of infrastructure, urbanisation, and widening development gaps among regions.
“These evolving realities necessitate the validation of existing datasets to ensure fairness, transparency, and equity in revenue sharing”, Shehu added.
He further disclosed that the broader review of the national revenue allocation formula had now reached an advanced stage, thus making the current data verification a critical step in safeguarding the reliability of the indices that will dictate future allocations.
The statement indicated that the rollout strategy comprised region-by-region verification across all states and the Federal Capital Territory, involving the systematic collection, validation, and reconciliation of critical socio-economic and infrastructural data.
The commission further disclosed that the verification process would focus on several key indicators, including health and education provision, internal revenue generation capacity, and the level of infrastructure development within states and local government areas.
To foster transparency and trust, the Commission plans to hold stakeholder engagement sessions in each state to encourage collaboration between government agencies and local communities.
The commission’s teams are expected to engage extensively with Ministries, Departments, and Agencies (MDAs), alongside local government authorities, to ensure every piece of data reflects present-day conditions across the federation.”
