The Revenue Mobilisation Allocation and Fiscal Commission has begun a nationwide data verification exercise in the Southeast aimed at updating key indicators used in sharing revenue among the three tiers of government.

The Chairman of RMAFC, Dr. Muhammad Shehu, disclosed this during a visit to Abia State Governor Alex Otti at Nvosi in Isiala Ngwa South Local Government Area.

Represented by the Commissioner for Ekiti State on the commission, Mrs. Omowumi Ogunlola, he said the exercise aligns with RMAFC’s constitutional mandate to periodically review the revenue allocation formula and ensure it reflects Nigeria’s current socio-economic realities.

According to Dr. Muhammad Shehu, the verification exercise represents a critical stage in the ongoing review process, focused on validating and updating the data used to determine how national revenue is shared among the federal, state, and local governments.

He explained that the allocation framework is built on several indices intended to ensure fairness, equity, and justice in the distribution of public resources across the country.

“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.

Shehu noted that the review of the revenue allocation formula has reached an advanced stage, making it necessary to verify the integrity and accuracy of existing data.

He recalled that the commission trained state and local government officials on data management in 2022 and later digitised its data collection processes to enhance efficiency, accuracy, and reliability.

According to him, the verification team will work closely with ministries, departments and agencies as well as local government authorities to ensure the collection of credible and up-to-date data.

Dr. Shehu appealed to the Abia State Government to facilitate access to relevant records, appoint liaison officers, and support the team’s work across local government areas.

In response, Otti assured the commission of the state government’s full cooperation and support throughout the exercise.

He disclosed that officials of the State Ministry of Finance have already been directed to work closely with the verification team to ensure a smooth process.

The Governor, however, stressed that while revenue allocation remains important, greater emphasis should be placed on strengthening internally generated revenue.

“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,” Otti said.

He urged states to prepare for the future by developing sustainable sources of internally generated revenue and reducing dependence on federal allocations.

The Governor reiterated his long-standing call for economic diversification, noting the global shift away from fossil fuels and the need for states to build more resilient and self-sustaining economies.