Revenue Commission Begins Work on New Allocation Formula

By Diafa Doubra,

The Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) has announced that it has commenced the process of reviewing and developing a fresh revenue allocation formula for the country.

According to the Commission, the review is necessary to ensure a fairer distribution of the nation’s resources among the three tiers of government federal, state, and local councils. The existing formula, which has been in use for years, has been widely criticised for not reflecting the current economic realities and developmental needs across the country.

Officials of the Commission explained that the exercise will involve wide consultations with stakeholders, including state governors, local government chairmen, traditional rulers, civil society groups, and other relevant bodies. The goal, they noted, is to produce a formula that guarantees equity, promotes national unity, and addresses the growing demand for improved service delivery at the grassroots.

The RMAFC also stressed that the new allocation formula will take into account issues such as population size, land mass, level of poverty, revenue generation capacity, and the need to reduce regional disparities.

By embarking on this fresh review, the Commission says it hopes to ensure that all Nigerians, regardless of their location, benefit fairly from the nation’s wealth.