RMAFC Begins Revenue Allocation Data Verification

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has commenced a data verification exercise across the Southeast as part of efforts to update the indices used in the distribution of revenue among the federal, state and local government tiers.

The exercise forms part of the commission’s ongoing review of the revenue allocation formula and is aimed at ensuring that the parameters used for revenue sharing reflect current realities across the country.

Chairman of the commission, Dr. Muhammad Shehu, disclosed this during a visit to Abia State Governor, Alex Otti, at Nvosi in Isiala Ngwa South Local Government Area. He was represented by the commissioner representing Ekiti State, Mrs. Omowumi Ogunlola.

Shehu said the verification exercise represents a crucial phase of the review process, as the commission seeks to validate and update data that form the basis for determining how federally generated revenue is allocated among the three tiers of government.

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He stated that the allocation framework relies on several indices intended to promote fairness, equity and balanced development, noting that demographic, economic and infrastructural changes across states make periodic reviews necessary.

According to him, changing population patterns, infrastructure expansion, shifting development needs and emerging socio-economic realities require regular updates of the data supporting the revenue allocation system.

He explained that the commission had reached an advanced stage in its review of the revenue allocation formula, making the verification of existing records essential to maintaining the credibility and accuracy of the process.

The RMAFC chairman recalled that the commission undertook capacity-building programmes for state and local government officials on data management and later introduced digital platforms for data collection to improve efficiency and reliability.

He said the verification team would collaborate with ministries, departments and agencies as well as local government authorities to obtain accurate and current information required for the exercise.

Shehu appealed to the Abia State Government to provide the necessary support, including access to relevant records, appointment of liaison officers and operational assistance to enable the team to carry out its assignment effectively.

Responding, Governor Otti assured the commission of the state government’s full cooperation throughout the exercise.

The governor disclosed that the Ministry of Finance had already been directed to work closely with the verification team to ensure seamless execution of the assignment across the state.

While acknowledging the importance of revenue allocation, Otti stressed the need for governments at all levels to focus more on revenue generation and economic sustainability.

He noted that dependence on revenue from oil may not be sustainable in the long term and urged states to strengthen internally generated revenue sources in preparation for future economic realities.

According to him, governments should prioritise the development of alternative revenue streams and reduce reliance on federal allocations as the global economy continues to adjust to declining dependence on fossil fuels.

Otti reiterated the importance of economic diversification, maintaining that states must build resilient economies capable of sustaining growth regardless of fluctuations in oil earnings.

The governor also encouraged members of the commission’s delegation to visit Aba, describing the city as a centre of enterprise, innovation and manufacturing activity.

He commended the entrepreneurial spirit of residents and highlighted the capacity of local businesses to develop and improve products across various sectors.

Also speaking, the Commissioner for Finance, Mr. Uwaoma Ukandu, said the verification exercise provides an opportunity for Abia State to present evidence of its developmental progress and fiscal reforms.

Ukandu stated that the state has maintained significant investments in education and healthcare through budgetary allocations while implementing reforms aimed at improving internally generated revenue.

According to him, revenue collections have recorded substantial growth in recent years as a result of improved administration and stronger fiscal management measures.

He added that members of the verification team had expressed satisfaction with ongoing infrastructure development projects, particularly road construction and urban renewal initiatives being undertaken across the state.

The exercise is expected to continue across states in the Southeast as the commission advances efforts to complete the review of the revenue allocation formula and ensure that future revenue sharing arrangements are based on updated and verifiable data.