FG  to roll out new revenue formula with  data verification exercise

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has commenced a nationwide data verification exercise aimed at strengthening Nigeria’s revenue allocation framework and ensuring a more equitable distribution of national resources among states and local government areas.

The initiative, announced on Thursday, is designed to review and update the factors and proxies used in sharing revenue, with a focus on aligning allocations with current socio-economic realities across the federation.

Mohammed Shehu, Chairman of the Commission, described the exercise as a landmark step toward reinforcing fiscal federalism and improving national development planning. 

He emphasised that the credibility of any revenue-sharing formula depends heavily on the accuracy of the underlying data.

He said the Commission is determined to ensure that Nigeria’s revenue allocation system reflects conditions on the ground, noting that reliable data is critical to achieving fairness, equity, and national cohesion.

According to him, the exercise will involve systematic collection, validation, and reconciliation of key socio-economic and infrastructural data used in determining indices for horizontal revenue sharing. 

These indices include population figures, landmass, infrastructure development, and other socio-economic indicators that influence how resources are distributed.

The Commission explained that the verification will focus on critical sectors such as education and healthcare provision, internal revenue generation capacity, and infrastructure development across states and local government areas. 

It added that the process would be carried out in phases, with teams deployed region by region across all 36 states and the Federal Capital Territory.

To enhance transparency and build trust, RMAFC said it would also conduct stakeholder engagement sessions in each state, bringing together government agencies, traditional institutions, civil society organisations, and community leaders.

Shehu called on all relevant stakeholders to cooperate fully with the Commission’s verification teams, stressing that the outcome of the exercise would have far-reaching implications for fiscal management, national planning, and balanced regional development.

He noted that Nigeria has undergone significant socio-economic changes in recent years, including rapid population growth, urbanisation, and expanding infrastructure, alongside widening development disparities among regions. 

These shifts, he said, make it necessary to validate and update existing datasets to ensure that revenue allocation remains fair and reflective of present realities.

The RMAFC chairman further disclosed that the ongoing review of the national revenue allocation formula is already at an advanced stage, making the data verification exercise a critical step in safeguarding the integrity of the indices that will underpin future allocations.

“The Commission’s teams would engage extensively with Ministries, Departments and Agencies, as well as local government authorities and community stakeholders nationwide, to ensure that all data used in the process accurately represents current conditions”, he added.

The Commission reiterated that the exercise is both a statutory obligation and a strategic national effort aimed at strengthening institutional credibility and promoting evidence-based policymaking in Nigeria’s fiscal governance system.