Key points
- The Revenue Mobilisation Allocation and Fiscal Commission has commenced its nationwide data verification exercise in the Southeast to update revenue allocation indices.
- The exercise aims to review and update the data underpinning allocation formulas to reflect evolving socio-economic and population dynamics.
- RMAFC has digitised its collection processes and will work with ministries, departments, agencies, and local authorities to ensure data integrity.
- Governor Alex Otti pledged full support and logistics for the verification team while emphasizing that resource generation is more important than allocation dependence.
- Abia State officials reported that internally generated revenue has more than tripled over the past three years due to fiscal management reforms.
Main Story
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has officially commenced its Southeast data verification exercise to update the core indices used for distributing national resources.
RMAFC Chairman, Dr. Muhammad Shehu, announced the development during an official visit to Governor Alex Otti at Nvosi in the Isiala Ngwa South Local Government Area of Abia State. Represented by the commissioner representing Ekiti State, Mrs. Omowumi Ogunlola, Shehu explained that the exercise fulfills the commission’s constitutional mandate to continuously review the revenue allocation formula in line with changing socio-economic realities across the federation.
With the review process now in an advanced stage, the commission is prioritizing data validation and accuracy. The verification teams are structured to collaborate closely with local government authorities, ministries, departments, and agencies to collect credible statistics.
To facilitate a seamless exercise, the commission requested that the Abia State Government grant full access to relevant records, assign specialized liaison officers, and simplify entry into all local government areas.
Governor Otti welcomed the delegation and promised comprehensive logistical support, confirming that officials within the Ministry of Finance have already been instructed to work hand-in-hand with the verification team. However, the governor used the platform to challenge the over-reliance on central funds, noting that states must aggressively build sustainable internal revenue streams to prepare for a future where fossil fuel revenues may drastically decline.
Echoing this stance, the State Commissioner for Finance, Mr. Uwaoma Ukandu, stated that the exercise provides an excellent benchmark to showcase Abia’s ongoing fiscal reforms and governance progress.
The Issues
- Validating the integrity and accuracy of data used to split national resources among federal, state, and local government tiers.
- Transitioning states away from a heavy dependence on central oil revenues toward sustainable internally generated funding models.
- Re-indexing federal revenue sharing metrics to match expanding population dynamics, shifting development gaps, and new regional challenges.
What’s Being Said
- Explaining why the indicators governing national resource distribution must undergo periodic field assessments, Dr Muhammad Shehu noted: “Over time, socio-economic realities evolve. Population dynamics change, infrastructure expands, development gaps shift and new challenges emerge. It therefore becomes imperative that the data underpinning these indices are periodically verified and updated to reflect present-day realities,”
- Prioritizing long-term fiscal independence and structural asset generation over statutory allocations, Gov. Alex Otti stated: “Resource distribution and allocation are important, but resource generation is even more important. There may come a time when there will be little or no oil revenue to share,”
- Praising the innovative capacity and productivity of the local workforce, the governor added: “Our people are hardworking and innovative. There is hardly anything produced elsewhere that they cannot replicate and improve upon,”
What’s Next
- The verification teams will work across regional ministries, departments, agencies, and local government areas to inspect records.
- Abia State liaison officers will guide commission representatives to facilitate access across local government jurisdictions.
- The commission will use the validated data to finalize its ongoing review of the national revenue allocation formula.
Bottom Line
The Revenue Mobilisation Allocation and Fiscal Commission has deployed teams across the Southeast to verify socioeconomic data for its updated revenue allocation formula, drawing support from Governor Alex Otti who utilized the visit to advocate for aggressive internal revenue growth and economic diversification ahead of declining oil resources.
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