RMAFC updates editors on revenue formula review
RMAFC has briefed media editors on progress regarding the review of the national revenue allocation formula and public sector remuneration structures.
The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) held a briefing with media editors detailing progress on the review of the national revenue allocation formula and public sector remuneration structures. The briefing provided an update on the commission’s ongoing efforts to review the formula that determines how revenue is shared among the federal, state and local governments.
The review of the revenue allocation formula has been a contentious issue for years, with states demanding a larger share of the national revenue. The RMAFC’s briefing suggests that the commission is making progress, but the details of the proposed changes remain unclear. The review of public sector remuneration structures is also significant, as it could affect the salaries of millions of civil servants.
This echoes the 2020 revenue formula review debates, which also saw states demand a larger share. The mechanism then was different, but the result was the same: a contentious process that has yet to produce a final outcome.
The winners: the states, which may receive a larger share of revenue; and the Nigerian government, which may achieve greater fiscal stability. The losers: the federal government, which may lose revenue; and the Nigerian public, who must wait for the outcome.
Bottom Line: RMAFC is reviewing the revenue formula. The stakes are high. The question is whether the states will get a better deal or the status quo will remain.