Politics
RMAFC: Repositioning Fiscal Governance for a Fairer and More Transparent Nigeria, By Dr. Ibrahim Mohammed – THISAGE
At a defining moment in Nigeria’s fiscal journey, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) is repositioning itself for a more visible, transparent and data-driven role in the management of the nation’s public revenues.
Since 2023, the Commission has undertaken a series of reforms and interventions aimed at strengthening revenue monitoring, improving derivation attribution, advancing fiscal federalism, reviewing public-office remuneration and modernising its institutional capacity.
The emerging picture is that of an institution seeking to move beyond the traditional perception of RMAFC as a largely technical agency to one that is more actively engaged in shaping Nigeria’s fiscal future.
At the Heart of Fiscal Federalism
RMAFC occupies a distinctive position in Nigeria’s governance structure. Its constitutional responsibilities include monitoring revenue accruals into the Federation Account, advising on revenue allocation, ensuring the application of the derivation principle and reviewing remuneration for political, public and judicial office holders.
These responsibilities have direct implications for the three tiers of government.
Every month, the allocation of Federation revenue affects the ability of the Federal, State and Local Governments to finance public services, meet their obligations and pursue development programmes. Consequently, the accuracy of revenue data and the fairness of its distribution are matters of national importance.
Yet, for many Nigerians, the technical processes behind revenue allocation remain poorly understood.
This is one of the reasons the Commission has launched a Strategic Communications and Institutional Reform Initiative, designed to make its work more accessible and its engagement with citizens, the media and stakeholders more proactive.
The initiative represents a deliberate shift from what may be described as quiet constitutional oversight towards visible institutional leadership.
A New Communications Philosophy
The reform initiative is built around five broad pillars: institutional clarity, transparency through technology, structured media engagement, thought leadership in fiscal federalism, and internal alignment and professional excellence.
At its core is a simple proposition: transparency is incomplete if citizens cannot understand the information being made available to them.
RMAFC therefore intends to modernise its digital platforms, develop accessible revenue allocation dashboards, improve data accessibility and establish more structured engagement with the media.
Quarterly briefings, policy explainers and proactive communication are expected to become part of the Commission’s institutional culture.
The objective is not to politicise the Commission but to reinforce its constitutional neutrality.
As the Commission maintains, its responsibility is not to partisan interests but to the Federation of Nigeria. Fiscal equity is therefore viewed not as a political slogan but as a constitutional obligation.
Protecting the Integrity of the Derivation Principle
One of the most significant areas of RMAFC’s work since 2023 has been the monitoring and verification of oil and gas production data.
The Commission has continued to collate and analyse monthly production information used in determining revenues attributable to oil-producing states under the constitutional 13 percent derivation principle.
Behind the figures are complex questions of production, geography, ownership, attribution and data integrity.
RMAFC has strengthened its crude oil production database and undertaken physical verification, geospatial mapping and data validation of oil and gas wells in collaboration with relevant institutions.
Among the notable outcomes has been the implementation of the attribution of 17 oil wells from Imo State to Rivers State, following the relevant Supreme Court judgment and the Commission’s decision.
The Commission has also participated in efforts to resolve boundary and attribution matters involving Cross River, Akwa Ibom, Imo and Anambra States.
Similarly, improved reporting of gas production from the Anambra Field has enabled Enugu and Kogi States to benefit from derivation revenues associated with gas production.
These interventions underscore an important principle: where production is incorrectly attributed, the consequences are not merely statistical. They can affect the distribution of public resources among states.
Following the Revenue Trail
The complexity of Nigeria’s oil and gas sector makes inter-agency collaboration essential.
RMAFC has consequently deepened its engagement with institutions including the Nigerian Upstream Petroleum Regulatory Commission, Nigerian National Petroleum Company Limited, Nigerian Midstream and Downstream Petroleum Regulatory Authority, National Boundary Commission and the Office of the Surveyor-General of the Federation.
The areas of collaboration range from production data and revenue remittances to gas-flaring penalties, well attribution, regulatory compliance and implementation of relevant provisions of the Petroleum Industry Act.
The Commission has also initiated engagement with the Federal Ministry of Defence on issues including crude oil theft, pipeline vandalism, export-terminal monitoring and verification of oil and gas installations.
The underlying concern is straightforward: production that is stolen, lost or inadequately monitored can translate into revenue that never reaches the Federation Account.
But RMAFC’s revenue mobilisation efforts are not limited to petroleum.
The Commission has explored opportunities in other sectors, including through engagements with the Federal Airports Authority of Nigeria and other government institutions.
Its collaboration with the National Space Research and Development Agency has also examined how satellite and geospatial technologies could help identify economic activities and assets capable of contributing additional revenue to the Federation.
This technology-driven approach could become increasingly important as Nigeria seeks to diversify its revenue base and reduce excessive dependence on volatile revenue sources.
A New Framework for Revenue Sharing
Perhaps the most consequential assignment undertaken by the Commission during the period under review is the comprehensive review of Nigeria’s Revenue Allocation Formula.
The exercise reflects the changing economic, social, fiscal and constitutional realities of the country.
It has involved consultations with the three tiers of government and other stakeholders, nationwide sensitisation programmes, calls for memoranda, technical workshops, policy discussions and comparative studies of revenue-sharing arrangements in other federations.
The Commission has also examined historical revenue and expenditure responsibilities, the functions assigned to each tier of government and the principles and indices underpinning horizontal revenue allocation.
Nationwide data verification formed part of the process.
Following extensive technical analysis and deliberations, the reviewed vertical and horizontal revenue allocation frameworks have been harmonised into a comprehensive report, alongside the necessary legislative proposals for consideration by the appropriate authorities.
The ambition is to create a revenue-sharing arrangement that is more equitable, evidence-based and responsive to contemporary realities.
For a federation in which the distribution of resources is often at the centre of political and economic debate, the significance of such a review cannot be overstated.
Recalibrating Public-Office Remuneration
RMAFC’s mandate extends beyond revenue allocation to the remuneration of political, public and judicial office holders.
In this area, the Commission’s review of judicial remuneration culminated in the enactment of the Judicial Office Holders (Salaries and Allowances) Act, 2025.
The legislation represents a major revision of a remuneration framework that had remained substantially unchanged since 2008.
The Commission has also advanced its review of remuneration for the Executive and Legislative Arms while continuing to monitor compliance with approved remuneration packages.
In determining appropriate remuneration, the Commission has considered factors including inflation, cost of living, GDP and prevailing wage conditions, alongside consultations with relevant government institutions, labour organisations and professional bodies.
The executive bill on the Political and Public Office Holders (Salaries and Allowances) Act, 2026 is also reported to be at an advanced stage and is expected to be presented to the President for transmission to the National Assembly.
Reform Begins at Home
Institutional reform, however, is not limited to policy and legislation.
The Commission has undertaken improvements to its physical and operational infrastructure, including electrical installations, generators, elevators, water systems and security facilities.
CCTV infrastructure and solar-powered security lighting have also been strengthened.
Alongside physical infrastructure, RMAFC has placed emphasis on its most important institutional asset: its workforce.
Routine health screening, medical referrals and health-awareness programmes have continued, while additional laboratory services have expanded diagnostic capacity.
The establishment of a functional pharmacy unit is expected to improve access to medicines and strengthen pharmaceutical inventory management.
Professional development has also remained a priority, with officers participating in specialised training, workshops, retreats and technical programmes relevant to the Commission’s increasingly complex responsibilities.
From Activities to Measurable Results
The Commission acknowledges that institutional activity alone cannot constitute success.
The more important question is what these interventions ultimately deliver for Nigeria.
For RMAFC, this means increasingly measuring its work in terms of additional revenue mobilised, revenue recovered or protected, improved attribution, reduced leakages and stronger accountability.
The verification of oil and gas production data, for example, is ultimately about ensuring that producing states receive the derivation revenues to which they are constitutionally entitled while protecting the Federation from losses arising from inaccurate reporting and inadequate monitoring.
Likewise, the review of the Revenue Allocation Formula is intended to go beyond an administrative requirement. Its ultimate test will be whether it contributes to a more sustainable and equitable fiscal relationship among the Federal, State and Local Governments.
This emphasis on measurable outcomes is likely to define the next phase of the Commission’s institutional development.
A Partnership with the Media and the Public
The launch of the Strategic Communications and Institutional Reform Initiative therefore comes at an important time.
RMAFC is seeking a closer relationship with the media, not simply as a channel for publicity but as an important partner in explaining the workings of Nigeria’s fiscal system.
For the Guild of Editors and the wider media community, the initiative presents an opportunity to engage more closely with the institution responsible for some of the most consequential aspects of fiscal federalism.
For civil society and academia, it provides room for informed scrutiny, research and participation in national debates on revenue allocation and fiscal governance.
For governments at all levels, it offers a framework for deeper dialogue on the responsibilities and resources of the federation.
And for citizens, greater transparency could make it easier to understand not only how much revenue is available, but how and why it is distributed.
The Road Ahead
Nigeria’s fiscal challenges remain substantial. Revenue volatility, production losses, competing demands on public resources and growing expectations from citizens all place pressure on the country’s fiscal institutions.
RMAFC’s response is to strengthen its systems, deepen collaboration, deploy technology and make its constitutional responsibilities more visible and understandable.
For RMAFC, that is the reform challenge—and the opportunity—now before it.
Dr. Ibrahim Mohammed, a Abuja-based Strategic Communications Consultant
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