By Gift ChapiOdekina, Abuja
The Federal Government has reaffirmed its determination to end what it described as long-standing interference by state governments in funds constitutionally allocated to Nigeria’s 774 local government areas, warning that the era of unchecked control over grassroots finances is coming to an end.
Mr. Mohammed Shehu, Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), made the declaration on Thursday in Abuja during the 2025 budget performance review and 2026 budget defence before the House of Representatives Committee on Finance, chaired by Hon. Abiodun James Faleke.
Shehu expressed concern over the persistent erosion of local government autonomy, blaming state interference for the poor functionality of councils nationwide. He announced that the Commission would re-establish a dedicated Local Government Monitoring Committee to track revenues and operations across all councils.
“The Commission will now monitor every single local government in Nigeria,” Shehu declared. “The crisis we are facing today is largely due to the non-functionality of local governments. Even under military rule, councils performed better than what we see today.”
He disclosed that President Bola Ahmed Tinubu has personally engaged state governors on the matter and is prepared to issue an Executive Order if necessary to enforce compliance. Shehu affirmed that RMAFC is fully aligned with the President’s position to protect local government funds and restore grassroots governance.
Shehu also credited the House Committee on Finance for strengthening the Commission’s institutional standing, noting that RMAFC now commands greater respect among revenue-generating agencies. “Today, agencies like the Nigerian Customs Service, NUPRC and others engage us proactively. Long-standing issues are being resolved because the Commission has been empowered to do its job,” he said.
Highlighting recent achievements, the RMAFC chairman revealed that the Commission conducted an unprecedented audit and physical verification of oil assets across the Niger Delta, describing the exercise as historic and far-reaching.
“For the first time, oil wells across the Niger Delta are being verified physically. Our teams spent three to four months in the field, going deep into creeks to identify Nigeria’s oil assets,” Shehu said. “When Mr. President receives this report, the country will shake.”
He emphasized that the exercise was carried out independently without relying on state governments for logistics, marking a major shift from past practices.
Shehu further informed lawmakers that the review of the revenue allocation formula among the three tiers of government is nearing completion, alongside a review of remuneration for political office holders. “Analysis of the data is almost concluded. The remuneration of political office holders has been completed and submitted to Mr. President through the Secretary to the Government of the Federation,” he said, adding that the revised revenue sharing formula would be finalized within the year.
In his response, Chairman of the House Committee on Finance, Hon. Abiodun James Faleke, commended the RMAFC management for its renewed drive and improved revenue oversight, describing the Commission’s performance as critical to Nigeria’s fiscal stability.
The session ended with lawmakers urging the Commission to sustain its momentum in strengthening transparency, accountability, and equity in the nation’s revenue management system.
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