New revenue formula will reflect state’s expanded responsibilities, says Shehu, RMAFC Chairman

…As Commission Reconciles Over N1.3trn in Federation Revenue

Mohammed Bello Shehu, Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), says the Commission has reconciled more than N1.3 trillion in Federation revenue through its monthly monitoring and verification process, highlighting the scale of revenue leakages and the importance of tighter oversight.

In an interview with John Osadolor, Managing Editor, BusinessDay, and Onyinye Nwachukwu, Abuja Bureau Chief, Shehu discusses the Commission’s efforts to strengthen revenue mobilisation, close gaps in the collection and remittance of public funds, and modernise its operations through digitalisation. He also speaks on the new revenue-sharing formula, which he says has been concluded and could become law before the end of the year, as well as the implications of recent constitutional changes for the allocation of resources among the three tiers of government.Shehu further discusses local government financial autonomy, the 13 percent derivation, oil-producing communities, and how states can reduce their dependence on FAAC allocations.

Question: First, talk us through RMAFC’s core mandates and its role in Nigeria’s fiscal framework.

Answer: The Commission came into its current form during the administration of President Ibrahim Babangida, following Decree 89, enacted around 1989. The late Minister of Finance, Abubakar Alhaji, who passed away about two weeks ago, was instrumental in establishing the Commission. However, the functions now performed by…