RMAFC Revenue Allocation Formula Review: What Nigerians Need to Know
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has completed a comprehensive review of Nigeria's revenue allocation formula, the framework that determines how federally collected revenue is shared among the federal, state, and local governments. The proposal is now with the appropriate authorities for consideration, but the new percentages have not yet been made public. The current, still-in-force formula continues to apply until any new framework is formally adopted.
What Is RMAFC?
RMAFC stands for the Revenue Mobilisation Allocation and Fiscal Commission, a constitutional body established under the 1999 Nigerian Constitution. It exists to manage some of the most sensitive fiscal questions in Nigeria's federal system: how much money each tier of government receives, and how much political and judicial office holders are paid.
What Does RMAFC Actually Do?
RMAFC's core functions include:
- - Monitoring the Federation Account — tracking money flowing in from oil revenue, taxes, and other federally collected income, and how it's disbursed.
- - Reviewing the revenue allocation formula — determining what share of that pooled revenue goes to the federal government, states, and local governments.
- - Setting remuneration for public officials — fixing salaries and allowances for political, public, and judicial office holders, a role most Nigerians don't associate with RMAFC but which is equally significant.
- - Verifying derivation formulas — particularly relevant for oil-producing states, which receive an additional derivation percentage on top of the standard allocation.
Why the Revenue Allocation Formula Review Matters
The current revenue allocation formula has been in place since 1992 and hasn't kept pace with Nigeria's changing fiscal realities — new state creation pressures, shifting oil revenue patterns, and growing demands from state and local governments for a larger share of federally collected funds. RMAFC Chairman Dr. Mohammed Bello Shehu described the review as one of the commission's most significant assignments to date, involving consultations with all three tiers of government, technical stakeholders, and nationwide engagement over an extended period.
The stated goal is a more equitable, just, and sustainable revenue-sharing system that better reflects Nigeria's current economic realities and the evolving responsibilities of each level of government.
What's Confirmed So Far
As of this update:
- - RMAFC has completed its review of the revenue allocation formula and produced a harmonised report with legislative proposals.
- - The proposal is now with the appropriate authorities for consideration — meaning it has not yet been formally adopted or signed into law.
- - The specific new percentages for federal, state, and local government shares have not been publicly disclosed. Anyone claiming to know the exact new figures before an official announcement should be treated with caution.
- - Alongside the revenue formula, RMAFC also completed a related review of remuneration for judicial office holders, which has already resulted in the Judicial Office Holders (Salaries and Allowances) Act, 2025.
- - A parallel review covering executive and legislative office holders is at an advanced stage, with an executive bill — the Political and Public Office Holders (Salaries and Allowances) Act, 2026 — expected to be transmitted to the National Assembly.
The Current Formula (Still in Effect)
Until any new formula is formally adopted, Nigeria continues to operate under the existing allocation structure, which splits the Federation Account roughly as follows:
| Tier of Government | Approximate Share |
|---|---|
| Federal Government | 52.68% |
| State Governments | 26.72% |
| Local Governments | 20.60% |
Oil-producing states additionally receive a derivation allowance on top of their standard state allocation, reflecting the constitutional principle that regions bear some environmental and economic costs of resource extraction. These figures represent the framework currently in force; check RMAFC's official channels for updates once any new formula is formally adopted.
Beyond Oil: RMAFC's Push for New Revenue Sources
 |
| The RMAFC review could reshape how federally collected revenue is shared among Nigeria’s three tiers of government. |
Part of the broader reform effort involves RMAFC exploring revenue opportunities beyond petroleum. The commission has disclosed partnerships with the Federal Airports Authority of Nigeria (FAAN) and the National Space Research and Development Agency (NASRDA), using satellite and geospatial technology to help identify additional revenue sources — a sign that fiscal reform in Nigeria is increasingly looking past oil dependency.
What Happens Next
The revenue allocation proposal now moves through further consideration by the relevant authorities before it can take legal effect — a process that, in Nigeria's federal system, typically involves review and eventual passage through the National Assembly. There's no confirmed timeline for when a new formula would take effect. This page will be updated once RMAFC or the National Assembly makes further disclosures.
Frequently Asked Questions
What does RMAFC mean?
RMAFC stands for the Revenue Mobilisation Allocation and Fiscal Commission, the Nigerian body responsible for managing federal revenue sharing and public office remuneration.
Has RMAFC finished reviewing the revenue allocation formula?
Yes, the commission has completed the review and submitted a harmonised report with legislative proposals, though the new formula has not yet been formally adopted.
What is the current revenue sharing formula in Nigeria?
The formula still in force allocates roughly 52.68% to the federal government, 26.72% to states, and 20.60% to local governments, in addition to derivation payments for oil-producing states.
When will the new revenue allocation formula take effect?
No official date has been announced. The proposal is currently with the appropriate authorities for further consideration.
What else has RMAFC been working on besides the revenue formula?
RMAFC has also completed a remuneration review for judicial office holders (now law) and is at an advanced stage on a similar review for executive and legislative office holders.
RMAFC's official website, the primary source for any future formal announcement of the new formula.
