Tag: RMAFC

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has disclosed that it established a Central Bank Monitoring Committee (CBMC) to oversee revenue inflows and disbursements from the Federation Account domiciled with the Central Bank of Nigeria (CBN).

Chairman of the Commission, Dr. Mohammed Bello Shehu, explained that the committee was set up in February 2021 to strengthen oversight mechanisms on the management of federation revenues.

“The Central Bank Monitoring Committee (CBMC) was created in February 2021, following the need to set up the processes to closely monitor revenue accruals to and disbursement from the Federation Account domiciled with the Central Bank of Nigeria,” Shehu said.

A statement by the Commission’s Head of Information and Public Relations, Maryam Umar Yusuf, said the Chairman made the disclosure in a keynote address he delivered at the opening ceremony of a retreat for members of the committee in Kano.

Represented by the Chairman of the Committee and Commissioner representing Ebonyi State, Engr. Nduka Henry Awuregu, Shehu said the retreat was organised in line with the provisions of the new RMAFC Act, 2025, which expanded the monitoring mandate of the Commission.

He explained that the move was driven by repeated concerns over revenue shortfalls that had continued to widen fiscal deficits at all levels of government.

“This was based on the numerous briefs, reports and memoranda that the Commission had generated over time on perennial underperformance of revenue projections and estimates of the annual budgets at all levels of government in Nigeria as envisaged in the growing fiscal deficits experienced annually,” he stated.

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Shehu expressed his commitment to repositioning the Commission to deliver on its mandate, assuring members of the committee of leadership support to enable them to overcome operational challenges.

According to him, maintaining a strong relationship with the CBN is central to achieving the objectives of the committee.

“The CBN is an important and cardinal institution that the Commission must relate with in carrying out its monitoring function of revenue accruals to and disbursement from the Federation Account,” Shehu said.

He urged members to actively engage in the sessions of the retreat, noting that the new Act placed greater responsibility on the Commission. “With the new Act, all hands must be on deck to ensure the successful repositioning of the Commission to discharge its functions with professionalism,” he added.

In his welcome remarks, the Vice Chairman of the Committee, Professor Steve Ugba, who represented the Chairman, said the retreat was designed to assess the effectiveness of the committee’s oversight functions, strengthen inter-agency cooperation, and deliberate on issues critical to fiscal transparency and national economic planning.

The Secretary to the Commission described the exercise as both timely and significant, noting that it would allow the committee to review its activities and set a clear direction going forward.

“The retreat is timely. It will afford them the opportunity to appraise themselves and see where they are getting it right or wrong to be able to streamline their activities to ensure that their mandate is achieved,” he said.

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has formally begun the process of reviewing the remuneration packages of political and public office holders across Nigeria.

This move could lead to significant changes in their earnings after nearly two decades without an adjustment.

Ahead of a formal announcement, the commission is hosting a strategic retreat in Kano to harmonise various reports before releasing the updated salary structure.

The exercise follows last year’s review of judicial officers’ salaries, which was approved by President Bola Ahmed Tinubu.

Declaring the retreat open, the Chairman of the RMAFC Remuneration and Monetisation Committee, Mohammed Kabeer Usman, who represents Gombe State on the commission, said the assignment was central to ensuring stability and strengthening governance in the country.

Usman said the committee had been mandated to consolidate earlier reports with fresh submissions into a single, comprehensive framework that would guide implementation.

“The commission carefully considered a wide range of perspectives, including memoranda from stakeholders, public hearings, and ministerial submissions, while also drawing from economic indicators and remuneration practices in other countries,” he said.

According to him, the review process is not solely about revising figures but also about assessing the long-term sustainability of such changes. “The commission has equally analysed the capacity of the government to implement the review package, ensuring that recommendations remain fair, realistic, and sustainable,” Usman added.

The RMAFC chief reminded participants that the 1999 Constitution (as amended) gives the commission the mandate to determine appropriate remuneration for political, public, and judicial office holders at all levels of government.

He urged participants at the retreat to ensure that the outcome of their deliberations is balanced and beneficial to the Nigerian system.

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“I implore everyone to contribute towards achieving the purpose of our gathering, given our varied knowledge and wealth of experience,” he said.

The retreat is expected to set the tone for a framework that will determine future remuneration packages for political and public office holders nationwide.

RMAFC’s Chairman Mohammed Shehu said there was an urgent need to update the salaries of political office holders.

He announced that President Tinubu currently earns N1.5 million monthly, while ministers receive less than N1 million, figures that have not changed since 2008.

“You are paying the President of the Federal Republic of Nigeria N1.5 million a month, with a population of over 200 million people. Everybody believes that it is a joke.

“You cannot pay a minister less than N1 million per month since 2008 and expect him to put in his best without necessarily being involved in some other things.

“You pay either a Central Bank of Nigeria (CBN) governor or the director general 10 times more than you pay the President. That is just not right. Or, you pay him (the head of an agency) 20 times higher than the Attorney-General of the Federation. That is absolutely not right,” Shehu said.

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has formally begun the process of reviewing the remuneration packages of political and public office holders across Nigeria.

This move could lead to significant changes in their earnings after nearly two decades without adjustment.

Ahead of a formal announcement, the Commission is hosting a strategic retreat in Kano to harmonise various reports before finalising and releasing the updated salary structure.

The exercise follows the review of judicial officers’ salaries last year, which was approved by President Bola Ahmed Tinubu.

Declaring the retreat open, the Chairman of the RMAFC Remuneration and Monetisation Committee, Hon. Mohammed Kabeer Usman, who represents Gombe State on the Commission, said the assignment was central to ensuring stability and strengthening governance in the country.

Usman explained that the Committee had been mandated to consolidate earlier reports with fresh submissions into a single, comprehensive framework that would guide implementation.

“The Commission carefully considered a wide range of perspectives, including memoranda from stakeholders, public hearings, and ministerial submissions, while also drawing from economic indicators and remuneration practices in other countries,” he said.

According to him, the review process is not solely about revising figures but also about assessing the long-term sustainability of such changes. “The Commission has equally analyzed the capacity of government to implement the review package, ensuring that recommendations remain fair, realistic, and sustainable,” he added.

He reminded participants that the 1999 Constitution (as amended) gives the RMAFC the mandate to determine appropriate remuneration for political, public, and judicial office holders at all levels of government.

Usman appealed to members at the retreat to ensure that the outcome of their deliberations is balanced and beneficial to the Nigerian system. “I implore everyone to contribute towards achieving the purpose of our gathering, given our varied knowledge and wealth of experience,” he said.

The retreat is expected to set the tone for a framework that will determine future remuneration packages for political and public office holders nationwide.

Earlier in the week, RMAFC Chairman, Mohammed Shehu, noted the urgency of updating pay for political office holders. He revealed that President Tinubu currently earns N1.5 million monthly, while ministers receive less than N1 million, figures that have not changed since 2008.

“You are paying the President of the Federal Republic of Nigeria N1.5 million a month, with a population of over 200 million people. Everybody believes that it is a joke,” Shehu remarked.

He added, “You cannot pay a minister less than N1 million per month since 2008 and expect him to put in his best without necessarily being involved in some other things. You pay either a CBN governor or the DG ten times more than you pay the President. That is just not right. Or you pay him [the head of an agency] twenty times higher than the Attorney-General of the Federation. That is absolutely not right.”

Shehu clarified that the Commission’s work is limited to political office holders such as governors, senators, legislators, ministers, and directors-general. He acknowledged public opposition to any salary increment for politicians but stressed that a realistic remuneration structure was essential to reflect their responsibilities and reduce distortions within the system.

Currently, the remuneration packages of political and public office holders, which have largely remained unchanged since February 2007, include the following:

The President earns N14,058,820 annually, while the Vice President earns N12,126,290. Ministers, the Secretary to the Government of the Federation (SGF), the Head of Service, and Chairmen of Constitutional bodies each receive N8,105,600 annually. Ministers of State and members of constitutional bodies earn N7,830,320, while special advisers and similar categories, such as speechwriters, are paid N7,771,500 annually.

Top public service officials such as Directors-General, the Auditor-General, Permanent Secretaries, the Accountant-General, Executive Secretaries, Chief Executives of agencies and parastatals, as well as Resident Electoral Commissioners of the Independent National Electoral Commission (INEC), receive N7,703,460 annually.

Read Also: RMAFC begins review of revenue allocation formula

In the legislature, the Senate President earns N9,936,970 per annum, while the Deputy Senate President takes home N9,236,667. Each senator is paid N8,105,600 annually. In the House of Representatives, the Speaker earns N9,908,440, the Deputy Speaker N9,148,137, while members receive N7,940,850.50 annually.

At the state level, governors earn N8,894,820 annually, while deputy governors receive N8,448,860. State commissioners, secretaries to the state government, and chiefs of staff are paid N5,348,900. Speakers of state Houses of Assembly earn N6,559,500, their deputies N5,783,930, while state lawmakers receive N5,348,900 annually.

At the local government level, chairman earn N3,633,248 annually, vice-chairmen N3,412,224, while supervisory councillors and local government secretaries earn N3,040,304 each.

With these figures unchanged for nearly two decades, the Commission’s review is expected to align political and public office holders’ pay with present-day realities while balancing affordability and public perception.

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) yesterday said it expects to complete the ongoing review of the revenue allocation formula this year.

Its Chairman, Dr. Mohamed Shehu, told reporters and civil society groups that the review will cover both vertical and horizontal allocations.

The latter will be determined by indices such as school enrollment, hospital beds, social development, and inequality.

The RMAFC chairman provided details of the current vertical formula, which allocates 52.68 per cent to the Federal Government, 26.72 per cent to the states, and 20.60 per cent to local governments.

“Out of the 52.68 per cent to the Federal Government, there are 4.18 per cent spatial funds, including one per cent FCT, one per cent ecological, 1.68 per cent natural resources development fund, and 0.5 per cent stabilisation,” he explained.

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Dr. Shehu said the last review was in 1992, which left the country with an outdated system.

He noted that the Constitution provides for periodic review to ensure conformity with socio-economic, political and fiscal realities.

“So many changes have taken place. States were created under the military demographically, economically, institutionally and constitutionally,” he noted, stressing that a new review is now urgent.

He stressed the importance of fiscal federalism in driving economic growth across the country.

“The situation has made it essential to re-evaluate the structure of fiscal federalism to foster economic growth in individual states, enabling them to become independent from the central government and ensuring equity, responsiveness and sustainability,” Dr. Shehu said.

According to him, federating units should compete to provide services rather than depend solely on the Federal Government.

Shehu also spoke on the 1.68 per cent Natural Resources Development Fund, lamenting its poor utilisation over the years.

“If states want to do something on tourism, agriculture, and solid minerals, they apply, and the Commission assesses and forwards it to the President for approval. But from 1999 to date, the story is not too good,” he said.

On the process of submitting the new formula, Dr. Shehu noted that constitutional provisions require the Commission to submit its recommendations to the President, who would then forward them to the National Assembly.

He said the goal is to deliver a formula that is “fair, just and equitable” and reflective of the responsibilities and needs of the federal, state, and local governments.

The Commission plans to adopt an inclusive, data-driven and transparent approach, engaging a wide range of stakeholders, including the Presidency, National Assembly, governors, the Association of Local Governments of Nigeria (ALGON), the judiciary, ministries and agencies, civil society organisations, traditional rulers, the organised private sector, and development partners.

The process will also draw on international best practices and empirical research, he added.

…targets completion by year-end

The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) has commenced the review of the revenue allocation formula with a pledge to complete the exercise before the end of the year.

Chairman of the Commission, Dr. Mohamed Bello Shehu, disclosed this in Abuja on Monday during an interactive session with journalists and civil society groups.

The RMAFC chairman provided details of the current vertical sharing formula among the three tiers, which allocates 52.68 percent to the federal government, 26.72 percent to the states, and 20.60 percent to local governments.

“Out of the 52.68 percent to the federal government, there are 4.18 percent spatial funds, including 1 percent FCT, 1 percent ecological, 1.68 percent natural resources development fund, and 0.5 percent stabilization,” he explained.

He added that the review will cover both vertical and horizontal allocations, with the latter determined by indices such as school enrollment, hospital beds, social development, and inequality.

Dr. Shehu lamented that the last review of the formula was carried out as far back as 1992 under the military administration, stressing that this has left the country operating with an outdated system.

According to him, “The Constitution as amended says review from time to time the revenue allocation formula and principles in operation to ensure conformity with changing realities in line with the constitutional responsibility and in response to the evolving socio-economic, political and fiscal realities of our nation.”

He explained that although an attempt at modification was made through an executive order under former President Olusegun Obasanjo in 2002, the country has since undergone significant changes.

“So many changes have taken place. States were created under the military demographically, economically, institutionally and constitutionally,” he noted, stressing that a new review is now urgent.

The RMAFC boss said the exercise would reflect constitutional amendments that allow states to undertake functions previously reserved for the federal government. “There had been some changes in terms of the differences between the concurrent list and the exclusive list. For instance, states can now engage in railway development and prison management, which used to be the exclusive preserve of the federal government,” he explained.

He also stressed the importance of fiscal federalism in driving economic growth across the country. “The situation has made it essential to re-evaluate the structure of fiscal federalism in order to foster economic growth in individual states, enabling them to become independent from the central government and ensuring equity, responsiveness and sustainability,” Dr. Shehu said.

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According to him, federating units should compete to provide services to their people rather than depend solely on the federal government. “In any federation, the federating units should compete with one another in trying to provide services to their people. It’s common knowledge that in every administration that comes in, the majority of Nigerians focus mainly on the federal government, the president, the president, the president,” he added.

Shehu also spoke on the 1.68 percent Natural Resources Development Fund, lamenting its poor utilization over the years. “If states want to do something on tourism, agriculture, and solid minerals, they apply and the Commission assesses, and forwards it to the president for approval. But over the years, from 1999 to date, the story is not too good,” he said, adding that the late former President Muhammadu Buhari had observed that certain disbursements were not in line with the original objectives.

He pointed out that the Commission was designed by Nigeria’s founding fathers as a federation commission, not as an appendage of any government in power. “For now, the Commission is fully empowered constitutionally, financially and with representation from each and every state of the Federation,” he said.

On the process of submitting the new formula, Dr. Shehu noted that constitutional provisions require the Commission to submit its recommendations to the President, who would then forward them to the National Assembly. “What happens if Mr. President decides not to send it to the National Assembly, which is what happened like I think two or three times in the past? I think the National Assembly is up to the task,” he stated.

He assured that the ultimate goal of the review is to deliver a revenue-sharing formula that is “fair, just and equitable” and reflective of the responsibilities and needs of the federal, state, and local governments. He said that the Commission will carefully assess service delivery obligations, fiscal performance, and development disparities.

The Commission plans to adopt an inclusive, data-driven and transparent approach, engaging a wide range of stakeholders including the Presidency, National Assembly, state governors, the Association of Local Governments of Nigeria (ALGON), the judiciary, ministries and agencies, civil society organizations, traditional rulers, the organized private sector, and development partners. According to Shehu, the process will also draw on international best practices and empirical research.

Contributing to the debate, Professor Uche Uwaleke of Nasarawa State University stressed the importance of ring-fencing funds to ensure they are used for infrastructure. “Now that states have to take care of electricity and railways, we can say the extra money should be for infrastructure funds. So that when the monies go to states and local governments, they are not looked at as discretionary funds that can be used for recurrent spending,” he said.

In his intervention, Professor Uche Uwaleke of Nasarawa State University also urged that Nigeria benchmark its horizontal allocation criteria against other federations like Canada, Brazil and India. He recommended adjustments to the weightings of inequality, population, landmass, internally generated revenue, and social development efforts.

He further noted that with the federal government relinquishing 5 percent of its VAT share to states under new tax laws, it was critical to ensure that increased allocations to the states are properly targeted and ring-fenced to ensure that the allocations are abused or used for other purposes other than those the revenue formula specifies.

The Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) has thrown its weight behind Nigeria’s recent constitutional reform that allows states to generate and distribute electricity. 

The Commission described the development as a major step towards improved energy access and a strategic gateway for Nigeria to attract global climate finance.

Speaking at the First African Conference on Climate Justice held at the Commission’s headquarters in Abuja on Wednesday, RMAFC Chairman, Dr. Mohammed Bello Shehu, said the constitutional shift of electricity from the exclusive list to the concurrent legislative list will empower subnational governments to play a more active role in power generation and distribution.

Represented at the event by the Federal Commissioner representing Kwara State, Hon. Ismail Mohammed Agaka, Dr. Shehu stated that this development not only promotes inclusive governance but also positions Nigeria to leverage international climate funds more effectively at both federal and state levels.

The conference, jointly organised by RMAFC and the Center for African-American Research Studies (CAARS), brought together experts, academics, civil society groups, and climate advocates to discuss Africa’s role in the global climate justice movement.

According to a statement signed by Maryam Umar Yusuf, Head of Information and PR at RMAFC, the Commission views the partnership with CAARS as timely and essential. “While RMAFC’s mandate differs from that of CAARS, both energy and climate challenges are common concerns, and our collective efforts towards solving these challenges guarantee timely and better results,” Dr. Shehu said in his address.

He described the event as “a landmark international conference on climate justice and praised CAARS for identifying RMAFC as a strategic partner in the global conversation around climate finance.” 

Shehu noted that such collaborations will foster constructive dialogue and pave the way for Africa to access vital funding aimed at addressing climate vulnerabilities.

In his keynote address, Director General of CAARS and Chief Convener of the conference, Prof. Nnamdi Nwaodu, called for Africa to assert itself in the global climate finance architecture. 

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He urged participants to move beyond theoretical debates and instead craft practical, fair, and inclusive frameworks that place Africa’s specific needs at the heart of climate finance models.

Prof. Nwaodu said the concept of climate justice must ensure that vulnerable communities, who contribute least to climate change, do not continue to bear the brunt of its consequences. “We are not here to rehearse the known statistics of environmental harm—we are here to act. It’s time to claim our seat at the table and design climate finance frameworks that reflect our continent’s realities,” he said.

The event featured academic and technical presentations from several thought leaders, including Prof. Ignatius Onimawo, former Vice Chancellor of Ambrose Alli University, who delivered a paper on climate adaptation, governance, and resilience strategies for Africa.

There was also a panel session led by civil society leaders and youth climate advocates, which focused on how climate finance can be effectively channelled to address local development needs and strengthen community resilience across the continent.