In a groundbreaking development, the Revenue Mobilisation and Fiscal Commission (RMAFC) is set to usher in a new era of fiscal policies with the implementation of a revised revenue-sharing formula for Nigeria, expected to kick off in the first quarter of 2024. This significant revelation was made by Mr. Muhammed Bello Shehu, the Chairman of RMAFC, during his appearance before the House Committee on Finance in Abuja.
Mr. Shehu underscored the gravity of the impending changes by revealing that President Tinubu has already been briefed on the proposed adjustments to the nation’s revenue-sharing formula. However, he emphasized that the process would require approval and legislative action by the National Assembly before becoming effective.
“I can assure this committee that sometime next year, the commission will forward a new revenue allocation formula in the first quarter to Mr. President, and we believe that he will forward it to the National Assembly for you to do your job on this issue. That I can assure you, sir, and the members too,” Mr. Shehu assured the Committee members.

The Chairman of RMAFC also drew attention to a pressing issue, highlighting that certain agencies currently owe the Federal Government staggering amounts ranging from N3 trillion to N6 trillion.
Adding further depth to the discussion, Hon James Faleke, the Chairman of the House Committee on Finance, expressed his eagerness for the swift implementation of the new revenue-sharing formula. He voiced concerns about the imbalance in revenue distribution, stating, “Where the federal government is having the lion’s share of revenue is not right.”
Faleke went on to elaborate on his perspective, addressing the role of the federal government and the need for effective local governance. “That’s why everybody is saying government, we have no money, no food, no this and that. As if it is the responsibility of the federal government to provide food. The federal government is just to create an enabling environment and good policies. If our local government system works well, we shouldn’t be having these impacts at all. I’m a product of the local government, and I know what I’m talking about,” he explained.
Advocating for a return to a robust local government system, Faleke encouraged Mr. Shehu to consider amending the act that established the RMAFC. He acknowledged the limitations of the current legislation, stating, “The present act does not give them the power, there’s no biting teeth, and that’s why most agencies flaunt remittances. We can look at it and amend it from our side. But we need to be aware that that act needs to be amended to make it more effective for better revenue for this country.”
As Infostride News closely monitors this unfolding narrative, the prospect of a revamped revenue-sharing formula takes center stage, promising far-reaching implications for Nigeria’s economic landscape in the coming year. Stay tuned for further updates on this transformative fiscal development.
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