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The Revenue Mobilization, Allocation and Fiscal Commission (RMAFC) has announced plans to review the revenue-sharing formula for the three tiers of government: federal, state and local governments. This was disclosed by the Chairman of RMAFC, Elias Mbam, on Tuesday in Abuja.

Mbam said the commission plans to constitute a standing committee next week to review the current revenue-sharing formula. State and local governments would receive more revenue when the new formula is enacted, he said.

The current formula allocates 52.68 per cent of government revenues to the federal government, 26.72 per cent to the states and 20.60 per cent to the local governments.

The News Agency of Nigeria reported that RMAFC embarked on a nationwide consultation in 2013 to review the revenue-sharing formula to support balanced development of the country. By December 2014, the commission released the report of its consultation and proposed a new revenue-sharing formula. But the report and recommendations were not acted upon.

RMAFC's boss said the standing committee that would be constituted next week will review the 2014 report and the current revenue-sharing formula, adding that the commission would also push for the diversification of the nation’s revenue for more sustainable growth and economic development.

“My agenda is to expand the sources of revenue for the federation. I will like to expand the cake that we are sharing so that people will get a reasonable quantity,” Mbam said. “I intend to do this through diversification in areas outside oil and gas, and that includes solid minerals, agriculture and manufacturing.”

He added that the commission will notify the states of what is available apart from oil and gas, so they can develop those aspects of the economy to their benefit.