In the architecture of governance, the question of money, how it is earned, shared and used, often determines whether a nation moves forward or remains trapped in difficulty. This is why institutions that manage public revenue occupy a central place in national life, even if their work is not always visible to the public. In Nigeria, the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) is at the heart of this responsibility.
Between May 2023 and January 2026, under the leadership of Mohammed Bello Shehu, the commission undertook a series of actions to improve revenue inflows, ensure fairness in distribution and strengthen the financial foundation of the federation, in line with the economic direction of President Bola Ahmed Tinubu’s administration.
The story of revenue in Nigeria has always been tied to oil, but the story of national development cannot continue to depend on a single source. This reality has shaped many of the RMAFC’s actions in recent years.
Working with the Nigeria Revenue Service (NRS), formerly the Federal Inland Revenue Service (FIRS), the RMAFC undertook a revenue recovery exercise targeting funds owed to the Federation Account. The exercise led to the recovery of over N50 billion, while broader efforts contributed to a significant rise in Federation Account revenues.
The importance of revenue recovery is captured in the words of the American statesman Benjamin Franklin, who once said, “An investment in knowledge pays the best interest.” What Franklin meant in his time applies to fiscal governance today: when a country understands its revenue sources and blocks leakages, it secures its future.
Revenue recovery is not only about money already lost; it is about building a culture where public funds are treated as sacred.
One of the RMAFC’s major steps involved verifying disputed oil wells and gas fields in the Niger Delta. Oil asset verification has always been contentious because it determines how revenue is distributed among producing states. The commission addressed long-standing disputes and laid a foundation for fairness in resource distribution by undertaking the verification exercise. In a federation, fairness in revenue allocation is not just an economic matter; it is a political stabiliser. When people believe that distribution is fair, tension reduces, and national unity becomes easier to sustain.
The French philosopher Montesquieu wrote, “A nation may lose its liberties in a day and not miss them in a century.” Fiscal injustice can also operate in this silent manner. When revenue distribution is perceived as unfair over a long period, it can create resentment that threatens national stability. The RMAFC sought to address this silent danger by addressing disputed oil assets and improving revenue monitoring.
Another major issue that has occupied the RMAFC is the review of Nigeria’s revenue allocation formula. The formula determines how funds in the Federation Account are shared among the federal, state, and local governments. The last comprehensive review was many years ago, despite constitutional provisions that recommend periodic review. Under Mr Shehu, the review process began with consultations with stakeholders across the country. The aim was to adjust the formula to reflect current realities, the responsibilities of each tier of government and the need for development across the federation.
The British economist John Maynard Keynes once noted, “The difficulty lies not so much in developing new ideas as in escaping from old ones.” Nigeria’s fiscal structure has, for decades, operated within outdated frameworks that no longer reflect modern realities. Population growth, urban expansion, infrastructure demands and security challenges have changed the responsibilities of government at all levels. A revenue formula designed decades ago cannot effectively serve a country that has changed so dramatically. Reviewing the formula is, therefore, not just a legal obligation but an economic necessity.
The RMAFC also proposed constitutional amendments to establish timelines for presidential submission of revenue formula proposals to the National Assembly. The recommendation addresses delays that have historically slowed down fiscal reforms. Laws and policies are only as effective as the speed with which they are implemented. When processes are delayed indefinitely, even the best policies lose value.
Another area that received attention is local government financial autonomy. The Supreme Court judgment affirming the financial independence of local governments marked a turning point in Nigeria’s governance structure. Mr Shehu openly supported this development and emphasised the role of local governments in grassroots development. The RMAFC engaged with the Association of Local Governments of Nigeria (ALGON) as part of efforts to ensure that local councils have access to their funds and can perform their constitutional responsibilities.
The idea that governance must reach the lowest level of society is not new. The political philosopher Alexis de Tocqueville observed that local institutions are to liberty what primary schools are to science; they bring it within the people’s reach. In practical terms, when local governments function properly, roads are maintained, primary healthcare improves, basic education becomes accessible and local markets grow. Fiscal autonomy for local governments, therefore, goes beyond administrative arrangement; it touches the daily lives of ordinary citizens.
Attention was also given to the solid minerals sector. Nigeria has vast mineral resources, yet revenue from the sector has remained far below its potential. The RMAFC introduced a new data rendition template for solid minerals to improve accountability and revenue generation from mining activities. Data is the backbone of modern revenue administration. Without accurate data, it is impossible to know what is produced, what is owed and what should be paid into government accounts.
The management thinker Peter Drucker once said, “What gets measured gets managed.” This statement explains why data templates and reporting systems are important. When production and payments are properly recorded, revenue leakages are reduced and the government earns what it is supposed to.
The RMAFC also supported broader tax reforms and fiscal legislation signed into law by President Bola Tinubu.
Tax reform is often unpopular because it is associated with payment, but in reality, it is about fairness and efficiency. A good tax system ensures that those who should pay actually pay, while protecting those who are too poor. It also ensures that the government does not rely excessively on borrowing.
The Roman philosopher Cicero once wrote, “The budget should be balanced, the treasury should be refilled, public debt should be reduced.” Though written over two thousand years ago, the statement still captures the essence of fiscal responsibility today. Governments must live within their means and increase revenue through legitimate channels and reduce dependence on loans.
Internally, the RMAFC also worked on reforms affecting remuneration of political office holders and ambassadors, staff training and the introduction of digital performance management systems. Institutional strength depends on the quality of people working within the system and the tools available to them. Training improves capacity, while digital systems improve efficiency and accountability.
The sociologist Max Weber argued that modern governance depends on strong institutions rather than strong individuals. Rules, procedures and professional standards must guide institutions. When systems are digital and performance is measured, institutions become more predictable and more reliable.
Another important area of advocacy was economic diversification. Nigeria cannot continue to rely solely on oil revenue. Diversification means developing agriculture, mining, manufacturing, technology and services so that revenue comes from multiple sources. Countries that depend on a single commodity often face economic instability because commodity prices fluctuate in the global market.
The writer and Nobel laureate Wole Soyinka once remarked that “The man dies in all who keep silent in the face of tyranny.” Economic dependence on one resource can be a form of economic tyranny because it limits national choices. Diversification gives a nation the freedom to make decisions without being trapped by the rise and fall of a single commodity price.
Transparency has also been a recurring theme in the RMAFC’s work. Monitoring revenue inflows, verifying oil assets and collaborating with revenue-generating agencies all point to a system designed to ensure public funds are properly accounted for. Transparency builds trust, and trust is essential in a country as large and diverse as Nigeria.
The American president Abraham Lincoln once said, “Public sentiment is everything. With public sentiment, nothing can fail; without it, nothing can succeed.” Fiscal reforms require public trust because citizens must believe that revenue collected is used for the public good. Without trust, even the best revenue policies face resistance.
As Nigeria continues to face economic challenges, institutions like RMAFC play a role that is often unnoticed but deeply important. Revenue mobilisation determines how much money is available for infrastructure, education, healthcare and security. Allocation determines how that money is shared among different levels of government. Fiscal discipline determines whether the country lives within its means or accumulates unsustainable debt.
The psychologist Abraham Maslow argued that human beings have basic needs that must be met before higher aspirations can be pursued. In national terms, revenue provides the means to meet basic needs such as roads, hospitals, schools and security. Without revenue, development remains an issue rather than a realitylityality.
What has emerged from the RMAFC’s activities between 2023 and 2026 is a picture of an institution working to improve revenue inflows, ensure fairness in distribution, support local government independence and modernise its internal processes. These efforts may not always make headlines, but they shape the country’s economic foundation.
The former British Prime Minister Winston Churchill once said, “We make a living by what we get, but we make a life by what we give.” In governance, what institutions give is not charity but service — service in the form of policies, systems and decisions that improve national life.
Nigeria’s fiscal future will depend on how well it manages revenue sources, how fairly it distributes resources and how responsibly it spends public funds. These are not simple tasks; they require patience, technical knowledge, political will and institutional discipline.
In the final analysis, the work of revenue and fiscal management is not about numbers alone; it is about people. It is about whether a child can go to school, whether a hospital has equipment, whether a farmer can transport goods to the market and whether a young graduate can find employment. Revenue is not just money; it is opportunity, stability and national direction.
The Indian leader Mahatma Gandhi once said, “The best way to find yourself is to lose yourself in the service of others.” Public institutions exist for this reason: service. When revenue is properly mobilised, fairly allocated and responsibly managed, government serves the people most fundamentally.
In a federation as complex as Nigeria, the question of who gets what, when and how will always remain sensitive. But with clear policies, accurate data, transparent processes and cooperation among institutions, it is possible to build a system that is fair, efficient and sustainable.
As the philosopher Aristotle wrote many centuries ago, “The aim of the state is the good life.” Fiscal policy, revenue mobilisation and resource allocation are tools toward that aim. When properly managed, they create the conditions for stability, growth, and national progress. When they are mismanaged, they create the opposite.
The work of the Revenue Mobilisation, Allocation and Fiscal Commission between May 2023 and January 2026, therefore, represents part of Nigeria’s continuing effort to build a stable fiscal system within a complex federal structure. And in the long journey of nation-building, fiscal order remains one of the most important pillars upon which every other achievement stands.
Abdullahi Mohammed is an Abuja-based media practitioner and public affairs analyst.