Governor Fintiri Advocates for Fairer Revenue Sharing Formula as RMAFC Begins Nationwide Consultation
Governor Ahmadu Umaru Fintiri of Adamawa State has strongly advocated for a more realistic and democratic revenue sharing formula to address the pressing developmental challenges faced by state and local governments across Nigeria. The governor made this urgent call during a meeting with a delegation from the Revenue Mobilization, Allocation and Fiscal Commission (RMAFC) at the Government House in Yola.
Current System No Longer Reflects Realities
Governor Fintiri emphasized that the existing revenue allocation system is outdated and fails to account for present-day socio-economic realities. He pointed out that state governments are now burdened with increasing responsibilities, including critical areas such as infrastructure development, education, healthcare provision, and security management. According to the governor, a comprehensive review of the formula is long overdue, and he urged the commission to recommend a fairer system that would provide better support to states and local governments.
"Strengthening subnational governments through a revised revenue sharing formula would significantly reduce the pressure on the federal government and lead to improved service delivery for all citizens," Fintiri stated. He expressed his full support for the ongoing review process and assured the RMAFC delegation of the Adamawa State Government's complete cooperation to ensure the exercise yields meaningful and impactful results.
RMAFC's Nationwide Data Verification Exercise
Earlier in the meeting, the leader of the delegation, Federal Commissioner Mohammed Ismail, who represents Kwara State, explained that the visit was part of a nationwide exercise aimed at verifying and updating the data used in revenue allocation among the three tiers of government. He clarified that this exercise is backed by constitutional provisions and seeks to ensure that the revenue sharing formula accurately reflects current socio-economic realities, including population changes, infrastructure development, and emerging national challenges.
Ismail noted that the commission has made significant progress in the review process and is currently in the phase of validating data that will inform a revised allocation formula. He commended the Adamawa State Government for its cooperation and support, as well as the visible infrastructural development recorded in the state. "The outcome of this exercise will have far-reaching implications for the entire federation," Ismail assured, adding that the commission would carry out its assignment with the highest standards of professionalism, transparency, and integrity.
Background on Revenue Sharing Formula Review
In August of last year, the RMAFC announced that it had begun the review of Nigeria's revenue sharing formula to better align with current realities. The commission highlighted that the current sharing formulary—which allocates 52.68 percent to the federal government, 26.72 percent to the states, and 20.60 percent to local government councils—is no longer tenable, as states and local governments are assuming greater responsibilities.
The last comprehensive review of the revenue sharing formula was conducted in 1992, over 33 years ago. Subsequent attempts to revise the formula have repeatedly failed, primarily due to the lack of willingness from sitting presidents to sign the proposals submitted by the RMAFC. This historical context underscores the urgency and importance of the current nationwide consultation and data verification efforts.
