RMAFC Working On New Revenue Allocation Formula, Reforms To Strengthen Monitoring — Chairman

Says states now shoulder greater responsibilities; Abia first in South East to allocate land for Commission’s office

NVOSI — The Revenue Mobilisation Allocation and Fiscal Commission, RMAFC, has disclosed that it is working on a new revenue allocation formula to reflect changing responsibilities of the three tiers of government, as well as reforms to strengthen revenue monitoring and digitalization.

The Chairman of the Commission, Dr. Mohammed Bello Shehu, disclosed this on Tuesday, September 16, 2026, when he paid a courtesy visit to Governor Alex Otti at his Nvosi country home in Isialangwa South Local Government Area.

Dr. Shehu said the existing revenue formula has been in operation for decades and has become inadequate given that states now shoulder greater responsibilities, including transportation infrastructure and other sectors previously dominated by the Federal Government.

He said the Commission is undergoing reforms aimed at enhancing digitalization and improving real-time access to revenue information from revenue-generating agencies, adding that steps are also being taken to ensure that funds under the Natural Resources Development Fund meant for development are recovered and appropriately utilized.

The RMAFC Chairman was in Abia in company of his commissioners and other officials, including the Federal Commissioner representing Abia State, Mrs. Nkechi Oti.

He commended the management of resources in Abia, noting the administration’s investment in over 400 roads and bridges, recruitment of teachers and renovation of schools, strides in primary healthcare, fiscal transparency and security. He cited the state’s rise from 17th to 4th position in fiscal transparency ranking and reduction of debt profile as evidence of effective utilization of allocations.

Responding, Governor Otti said his administration has consistently committed over 80 percent of its annual budgets in the last three years to capital expenditure to give infrastructure, education and health a facelift.

“We are very happy that you are doing what you are doing. And we know that with the changes you are proposing, and with the President supporting us, states can be more empowered. If states are more empowered, they will do a lot more for the people,” Otti stated.

The Governor noted that Abia, despite having oil in one local government, ranks low in federal allocation but has managed limited resources by efficiently allocating them to areas of most important need. He added that most roads his administration has built are federal roads, but does not discriminate once authorization is granted for the benefit of Abians.

Governor Otti expressed hope that the proposed new revenue formula would be implemented soon to enable states to do more, and reassured RMAFC of his administration’s continued support.

Highpoint of the visit was the presentation of a Certificate of Occupancy, C of O, by Governor Otti to the RMAFC Chairman for the Commission’s office in Abia, making Abia the first state in the South East to hand over land to RMAFC for its permanent office. The Chairman assured that the building would conform to the Commission’s standard.