Nvosi, Abia State: The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has launched a nationwide audit of revenue data, aiming to overhaul how funds are shared among Nigeria’s states and local governments.
RMAFC Chairman, Dr Muhammad Shehu, disclosed this on Wednesday during a visit to Governor Alex Otti in Nvosi, Isiala Ngwa South Local Government Area of Abia.
Represented by the Commissioner representing Ekiti State, Mrs Omowumi Ogunlola, Shehu said the exercise aligned with the commission’s constitutional mandate.
He said the mandate required continuous review of the revenue allocation formula to reflect changing socio-economic realities across the country.
According to him, the exercise officially marks the verification and updating of the data used to share revenue among government tiers.
Shehu said the allocation system relied on indices designed to promote fairness, equity and justice in the distribution of national resources.
“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,” he said.
He said the review of the revenue allocation formula had reached an advanced stage, necessitating validation of data integrity and accuracy.
Shehu recalled that the commission trained state and local government officials on data management in 2022 and digitised data collection processes.
He said the verification team would work with ministries, departments, agencies and local government authorities to ensure credible data gathering.
Shehu appealed to the Abia Government to provide access to records, appoint liaison officers and facilitate access to local government areas.
He commended Otti’s administration for its governance achievements and expressed confidence in the state’s cooperation.
Responding, Otti assured the team of full support and pledged to provide the necessary information and logistics.
He said officials of the Ministry of Finance had already been directed to collaborate closely with the verification team.
The governor, however, stressed the importance of generating revenue rather than relying on federally allocated funds.
“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,” the governor said.
He said states must prepare for such a future by developing sustainable sources of internally generated revenue.
Otti reiterated his long-standing call for economic diversification, citing global shifts away from fossil fuels.
He urged the delegation to visit Aba and witness the ingenuity, resilience and creativity of the state’s people.
“Our people are hardworking and innovative. There is hardly anything produced elsewhere that they cannot replicate and improve upon,” he said.
Commissioner for Finance, Mr Uwaoma Ukandu, said the exercise offered an opportunity to showcase the state’s developmental progress.
He highlighted achievements in education, healthcare, and internally generated revenue under the current administration.
Ukandu said about 35 per cent of the state’s budget had been consistently allocated to education and healthcare.
He added that internally generated revenue had more than tripled in the past three years through reforms and improved fiscal management.
According to him, members of the verification team expressed admiration for developments in road infrastructure and urban renewal.
Ukandu assured the delegation of the state’s commitment to excellence and continuous improvement in governance.