Abuja, Nigeria – The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) today had a press release to officially launch a comprehensive review of Nigeria’s Revenue Allocation Formula, marking the first major overhaul of the system in more than three decades.

At a press briefing held in Abuja, RMAFC Chairman Mohammed Bello Shehu announced the decision, citing constitutional requirements and changing economic realities as key motivations for the review.

“The governance and economic landscape in Nigeria has evolved significantly since 1992. It is imperative that our revenue allocation reflects these changes,” Shehu said.

Currently, the Federal Government receives 52.6% of revenue, while state and local governments receive 26.7% and 20.6%, respectively. Additional allocations of 1% each go to the Federal Capital Territory, Ecological Fund, Stabilisation Fund, and Natural Resources Fund.

Recent constitutional amendments have devolved key responsibilities, such as power generation, railway management, and correctional services, to state governments, increasing their financial burdens. However, revenue distribution has remained unchanged.

RMAFC has pledged a transparent, data-driven process with broad stakeholder consultation, involving federal, state, and local authorities, the judiciary, civil society, traditional institutions, and the private sector.

The review is expected to conclude by December 2025.