The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has hinted that economic diversification efforts could soon play a key role in determining revenue allocations to states and local governments under a new sharing formula being developed.
This was contained in a communiqué issued by the Commission’s Mobilisation and Diversification Committee (M&DC) at the end of its retreat held in Calabar, Cross River State, at the weekend.
The committee recommended that the economic diversification initiatives of governments at all levels be adopted as one of the key criteria in the revenue-sharing formula.
It further advised the Commission to develop a National Policy on Economic Diversification that considers the economic potential and peculiarities of the federal, state, and local governments.
Speaking at the retreat’s opening session, RMAFC Chairman, Dr. Muhammed Bello Shehu, stressed the urgent need for all tiers of government to pursue transformative diversification strategies to address Nigeria’s fiscal challenges.
Represented by Federal Commissioner for Kwara State, Hon. Ismail Mohammed Agaka, Shehu said the retreat was designed to evaluate existing revenue mobilisation frameworks, explore innovative diversification avenues, and produce actionable recommendations aligned with national policy.
“Our fiscal trajectory is at a crossroads,” Shehu said.
“While government expenditure continues to grow, internally generated revenue remains inadequate across most states. A deliberate, data-driven approach to revenue mobilisation and diversification is overdue.”
Committee Chairman and Federal Commissioner for Edo State, Hon. Victor Eboigbe, said the retreat aimed to identify challenges affecting the committee’s performance and design practical solutions to drive realistic economic diversification across the federation.
The communiqué also called for zonal advocacy campaigns in collaboration with regional development commissions, greater stakeholder engagement, and public-private partnerships to boost investment.
It urged governments to prioritise projects with strong revenue potential and job creation capacity, integrate the informal sector into the tax net, and sustain infrastructural projects from past administrations.
