RMAFC completes revenue formula review
Analysis based on 12 articles · First reported Aug 15, 2026 · Last updated Aug 15, 2026
The completion of the revenue allocation formula review could lead to changes in how federal revenues are distributed among Nigeria's three tiers of government, potentially affecting state and local government finances and fiscal capacity. The remuneration reviews may increase public sector wage costs, but the impact on markets is indirect and limited, as the proposals still require legislative approval.
The Nigeria — Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) announced the completion of its comprehensive review of Nigeria's Revenue Allocation Formula, which determines how federally collected revenues are shared among the federal, state, and local governments. The commission also finalized the review of remuneration for judicial office holders, resulting in the Judicial Office Holders (Salaries and Allowances) Act, 2025, and advanced the review for executive and legislative office holders, with a bill for the Political and Public Office Holders (Salaries and Allowances) Act, 2026 expected to be transmitted to the National Assembly. Chairman Mohammed Shehu presented these updates during an interactive session with the Nigerian Guild of Editors in Lagos, highlighting the commission's achievements since 2023. The commission also intensified monitoring of oil and gas production to ensure accurate application of the 13% derivation principle, reallocating 17 oil wells from Nigeria — Imo State to Nigeria — Rivers State per a Supreme Court judgment, and improving gas production reporting to benefit Enugu and Kogi states. RMAFC strengthened collaboration with agencies like the Nigeria — Nigerian Upstream Petroleum Regulatory Commission, NNPC, and the Nigeria — Nigerian Midstream and Downstream Petroleum Regulatory Authority, and engaged the Ministry of Defence on crude oil theft and pipeline vandalism. Additionally, the commission explored partnerships with the Nigeria — Nigerian Ports Authority and the Nigeria — National Space Research and Development Agency to identify new revenue sources using satellite and geospatial technologies.
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