The Federal Government is in the final stages of reviewing the revenue allocation formula across the three tiers of government as well as the remuneration of political office holders.
Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mohammed Shehu, made this disclosure in Abuja yesterday during a session on the 2025 budget performance and 2026 budget defence, organised by the House of Representatives committee on Finance chaired by James Faleke.
This was as the committee grilled the acting Managing Director of Nigerian Bulk Electricity Trading (NBET) Plc, Johnson Akinowo, over the utilisation of N4.099 billion accrued from regulatory incomes in the 2025 fiscal year.
Shehu said the commission had concluded data analysis on the review and would soon present its recommendations.
He noted that adjustments to the salaries and allowances of ministers and other political office holders had already been submitted to the President, through the Secretary to the Government of the Federation (SGF).
“Very soon, we will conclude. We have done everything. We are just about to finish analysing the data and bring it before you. Remuneration of political office holders is completed. We have submitted it through the SGF to Mr. President.
“We hope that very soon this will be transmitted to you, so that it becomes law. Of course, your own doesn’t require any legislation; it’s for Ministers and others. We are also on vertical and horizontal revenue sharing formula. We will conclude it this year,” he stated.
Shehu expressed the Federal Government’s commitment towards ending the state governments’ interference in the revenue allocated to the 774 local councils across the country.
The RMAFC helmsman, who expressed grave concern over the states’ interference in the fiscal governance of the local councils over the years, said: “The commission would like to establish a Local Government Committee now like we used to do before the Supreme Court said we were busybodies. Now we will monitor every single local council in Nigeria.
“I’m glad that the President spoke to the governors himself, that ‘if you don’t allow this, then I will issue an Executive Order’. So, the commission is fully in support of the President over this course. The crisis we are having in Nigeria today is lack of functionality of local councils, and every single one of us knows this. Even under the military, the local councils performed much more better. So I thank you profoundly sir, it’s your committee that initiated this.”
On NBET, Faleke expressed concern over a series of expenditures, including N377.031 million spent on welfare packages, N76.939 million on other expenses, N470.122 million on international travel and transport, and other costs on retreats, professional fees, conferences, maintenance and personnel.
Lawmakers also questioned the non-declaration of revenue generated in December 2025.
Responding, Akinowo said all international travels were conducted with approval from the SGF or Head of Service, citing the World Bank Spring where NBET’s presence was required to clarify Nigeria’s portfolio.
On revenue not declared in December 2025, Akinowo said invoices due after the fiscal year were captured in subsequent months, in accordance with existing legislation.
Following the session, Faleke announced that the committee would make an omnibus request for all 2025 expenditures, approvals and waivers from relevant authorities, including the Presidency.
The committee suspended consideration of the 2026 budget proposal and adjourned until Tuesday, February 10, 2026, when the Accountant-General of the Federation is expected to appear.