The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has called for a periodic review of Nigeria’s revenue allocation formula every five years, in line with the constitutional mandate, to reflect current economic and governance realities.

This recommendation was among several resolutions adopted at the end of a three-day retreat in Uyo, Akwa Ibom State, themed “Understanding the Role of Revenue Mobilisation and Fiscal Commission and Other Stakeholders/Agencies in Nation Building.”

While presenting the communique to journalists on Wednesday evening, the Chairman of the Commission, Mohammed Shehu, represented by Ismail Agaka, who chairs the Public Affairs and Communication Committee, stated that the present allocation formula had remained unchanged for over 16 years. He stressed that this stagnant structure no longer aligns with the socio-economic dynamics of the country, necessitating an urgent overhaul.

He noted that participants at the retreat identified key gaps in the constitutional framework governing revenue distribution and emphasized the need to amend Section 162 (2) of the 1999 Constitution to establish a definite timeline within which the President must submit the Commission’s proposed revenue allocation formula to the National Assembly.

Also highlighted was the need to amend Section 162 (6) to ensure that allocations to Local Governments are paid directly from the Federation Account. This recommendation aligns with the Supreme Court ruling of July 11, 2024, which upheld the financial autonomy of local governments.

The Commission further advocated for the inclusion of Local Government Chairmen and Councilors in the list of political office holders eligible for remuneration packages as determined by the RMAFC, lamenting their current exclusion in the constitutional provisions.

In its drive to modernize fiscal oversight, the Commission recommended the establishment of a National Revenue Dashboard—a real-time digital interface that would connect with all revenue-generating agencies for transparent and efficient monitoring of inflows into the Federation Account.

A significant structural reform was also proposed: the separation of the Office of the Accountant General of the Federation from that of the Federal Government. According to the Commission, the Office of the Accountant General of the Federation should be domiciled at RMAFC to enhance its neutrality and capacity to track federal revenues.

Reaffirming its constitutional role, RMAFC pledged to intensify efforts to monitor revenue accruals and ensure prompt and accurate remittance by all revenue-generating agencies. The Commission also committed to strengthening its advisory role on matters related to national revenue, public expenditure, and debt management.

The retreat, which featured presentations from fiscal experts and policymakers, concluded with a shared resolve to reform Nigeria’s revenue governance structure in a manner that promotes equity, efficiency, and accountability across all tiers of government.