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33 Years On, RMAFC Begins Review of All-Important Allocation Formula

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By Joel Ajayi


After more than three decades, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has officially commenced a comprehensive review of Nigeria’s revenue allocation formula, aiming to align it with the country’s current socio-economic realities.


The last major review of the revenue allocation formula was carried out in 1992. Although there have been several executive adjustments since 2002, a full-scale overhaul had not been undertaken—until now.


Speaking at a press conference on Monday to formally launch the 2025 Revenue Allocation Formula Review, the Chairman of the Commission, Dr. Mohammed Bello Shehu, emphasized that the review is both a constitutional responsibility and a timely necessity.


He stated that the aim of the review is to establish a fair, just, and equitable revenue-sharing formula that reflects the current responsibilities, needs, and capacities of the Federal, State, and Local Governments.


“It is with a profound sense of responsibility and constitutional duty that I welcome you to this important press conference, which marks the formal launch of the review of the current Revenue Allocation Formula (RAF) for sharing revenue among the three tiers of government in Nigeria,” he said.

Dr. Shehu referenced Paragraph 32(b), Part I of the Third Schedule of the 1999 Constitution (as amended), which mandates the RMAFC to “review, from time to time, the revenue allocation formulae and principles in operation to ensure conformity with changing realities.”


He noted that the ongoing review is driven by Nigeria’s evolving economic, political, and constitutional landscape. Notably, recent amendments by the 9th National Assembly transferred several key responsibilities—such as electricity generation and distribution, railways, and correctional services—from the Exclusive to the Concurrent Legislative List.


This devolution of powers, he explained, has placed greater financial and administrative responsibilities on subnational governments, making it necessary to reevaluate the existing fiscal framework.


“The Commission will embark on a thorough, data-driven, and inclusive process,” Dr. Shehu added. “This will involve broad consultations with critical stakeholders, including the Presidency, National Assembly, State Governors, ALGON, the Judiciary, MDAs, civil society organizations, traditional rulers, the organized private sector, and development partners.”

He also noted that RMAFC will integrate cutting-edge research, empirical data, and international best practices into its analysis. The review will assess service delivery obligations, fiscal performance, developmental disparities, and economic capacities at all levels of government.


 “Ultimately, our objective is to create a more balanced and sustainable fiscal federalism—one that fosters economic independence at the subnational level while ensuring equity and accountability in revenue distribution.”


Dr. Shehu also appealed for the cooperation of all stakeholders, emphasizing that the review is in the national interest and intended to benefit all Nigerians, not just select segments of the country.
In his remarks, the Federal Commissioner representing Katsina State and Chairman of the Revenue Formula Committee, Kabir Muhammad Mashi, OON, reaffirmed the Commission’s readiness to carry out a successful and impactful review.


Mashi disclosed that while the Commission had produced a report on the Vertical Revenue Allocation Formula in April 2022, it was shelved due to the 2023 constitutional amendments, which significantly altered the responsibilities of the various tiers of government as outlined in the First and Second Schedules of the Constitution.


“Hence, the need for a fresh review of the revenue allocation formula in its entirety—to reflect the current socio-economic challenges in the country, as well as the new economic policies of the current administration,” he said.


He described the event as a pivotal moment in the evolution of Nigeria’s fiscal federalism and intergovernmental fiscal relations.


“It provides an opportunity for us to brief you on our activities so far, to explain our approach, and to receive your valuable input on this vital national matter,” Mashi said. “The Commission is determined to carry out this review through a process that is inclusive, transparent, evidence-based, and fully aligned with the spirit and letters of the 1999 Constitution (as amended).”


Meanwhile, the committee is expected to submit its full report by December 2025.

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Turning Africa’s Raw Materials Into Wealth: The ARMS 2026 Industrial Agenda

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By Joel Ajayi

For decades, Africa’s vast natural resources have powered industries and economies far beyond the continent, while many African countries have remained largely exporters of unprocessed commodities and importers of finished products.

That familiar pattern is now coming under renewed scrutiny as policymakers, researchers, investors and industrialists seek to change the direction of Africa’s resource economy.

At the centre of that conversation is the second edition of the Africa Raw Materials Summit (ARMS 2026), scheduled for October 19 and 20 at the Abuja Continental Hotel, Abuja, under the theme: “From African Feedstock to African Factories.”

Organised by the Raw Materials Research and Development Council (RMRDC), the summit is being positioned as more than another gathering of policymakers and industry stakeholders. It is intended to provide a platform for confronting the structural challenges that have kept African raw materials largely disconnected from local manufacturing.

Africa has for years operated largely within a “pit-to-port” economic model, exporting raw materials while importing expensive finished products.

Speaking at a press conference ahead of the summit on Tuesday in Abuja, the Director-General and Chief Executive Officer of RMRDC, Prof. Nnanyelugo Martin Ike-Muonso, said the event would bring together policymakers, investors, researchers, technology providers and industrialists to develop practical strategies for transforming Africa’s abundant natural resources into industrial wealth.

The challenge, therefore, is not simply the abundance of resources, but the continent’s ability to transform those resources into industrial value, employment, technology and wealth within Africa.

Nigeria alone, according to the RMRDC, has more than $582.4 billion in documented non-renewable natural resources, while the wider continent possesses substantial deposits of critical minerals, agricultural raw materials and industrial feedstock.

Yet, the benefits of this resource endowment have often been constrained by inadequate processing capacity, weak infrastructure, limited technology, financing gaps and fragmented regional value chains.

From Dialogue to Industrial Action

ARMS 2026 builds on the maiden edition held in May 2025, which attracted more than 1,000 delegates from across the world.

The inaugural summit also witnessed the unveiling of the Ten-Year Raw Materials Transformation Roadmap (2025–2034) by the Minister of State for Industry, Senator John Owen Enoh.

The roadmap was designed around areas including technological capability, climate-resilient processing and backward integration, establishing a policy framework for greater domestic utilisation of Africa’s raw materials.

The second edition is expected to move the conversation further by bringing policy, capital, technology and industrial stakeholders around practical mechanisms for turning raw materials into locally manufactured products.

One of the major proposals highlighted by the RMRDC is the 30 per cent Mandatory Value Addition Bill, which seeks to establish a statutory minimum level of value addition to Nigerian raw materials before export.

The Council says the proposed framework could support job creation, import substitution, foreign-exchange conservation and increased manufacturing contribution to the economy.

Building the Infrastructure for Value Addition

The industrial transformation envisaged by ARMS 2026 goes beyond legislation.

A major concern is the “missing middle” between where raw materials are produced and where factories are located.

Poor transportation networks, inadequate cold-chain facilities, weak rural roads, limited testing and certification infrastructure and border-related delays can make locally sourced materials more expensive and less competitive.

Consequently, logistics and infrastructure constitute one of the five principal pillars of the summit.

The objective is to develop more reliable corridors connecting farms and mines with processing centres and manufacturing facilities, thereby reducing losses and improving the movement of industrial inputs.

The Digital Dimension

Technology is also becoming an important part of the Council’s strategy.

The RMRDC says it has developed the Nigeria Integrated Information Statistical System for Raw Materials and Products (NISSRAMP), described as a digital repository containing information on feedstock deposits, specifications, production outputs and industrial absorption rates.

The Council has also highlighted its transition towards paperless operations and its certification as a Data Controller/Processor of Major Importance by the Nigeria Data Protection Commission.

Such digital infrastructure could provide investors and manufacturers with better information about the availability and characteristics of raw materials while supporting more informed industrial planning.

Turning Waste Into Industrial Inputs

Another major component of ARMS 2026 is the proposed expansion of the circular economy.

The summit will examine how agricultural by-products, mine tailings, scrap metals and biomass can be recovered and reused as inputs for new production processes rather than being treated simply as waste.

The RMRDC argues that such an approach could lower raw-material costs while supporting more sustainable and climate-resilient manufacturing systems.

For Africa, where industrial expansion must increasingly balance economic development with environmental considerations, waste industrialisation could become an important part of the continent’s manufacturing conversation.

From National Production to African Value Chains

The African Continental Free Trade Area is another important element of the summit’s agenda.

The RMRDC sees AfCFTA as an opportunity to create regional value chains in which raw materials sourced in one African country can be processed and supplied to manufacturers in another.

Under such a model, Africa would move beyond simply exporting commodities to external markets and develop stronger internal networks for supplying chemicals, refined minerals, agricultural inputs and other industrial materials across national borders.

This approach places regional integration at the heart of Africa’s industrialisation strategy.

Bridging Research and Capital

A recurring weakness in many developing economies is the gap between research and commercialisation.

Innovations may emerge from universities, research institutions and laboratories without receiving the financing, equipment or market connections required to become commercially viable.

ARMS 2026 intends to address that gap through technology commercialisation and capital linkages, connecting research outputs with investors, development finance institutions and industrial off-takers.

The RMRDC has also cited partnerships with the Bank of Industry for commercial-scale post-harvest processing and a South-South technology-transfer partnership with the National Innovation Centre par Excellence in Shanghai, China.

A Larger Industrial Conversation

The scale of ARMS 2026 is expected to be significantly larger than the maiden edition.

The organisers project more than 1,800 delegates from all 54 African countries and global industrial partners.

The programme will feature high-level policy dialogues, technical panels, an advanced raw materials and technology exhibition, industrial site visits and the African Raw Materials Industry Awards.

The exhibition, in particular, is expected to showcase locally fabricated processing machinery, advanced domestic materials, green chemicals and engineered commercial inputs.

Beyond the speeches and exhibitions, however, the real significance of ARMS 2026 will ultimately depend on what happens after the summit.

Africa’s challenge has never been a shortage of raw materials. The more difficult question has been how to transform those resources into factories, products, skilled employment, technology and sustainable economic opportunities.

For Nigeria and the rest of the continent, the proposed shift from “pit-to-port” to “feedstock-to-factory” therefore represents a broader debate about the future structure of African economies.

ARMS 2026 seeks to place that debate firmly on the industrial agenda — with value addition, technology, finance, infrastructure, circular production and regional trade at the centre.

If the commitments and partnerships generated by the summit translate into measurable industrial activity, the event could provide another platform for Africa to examine how its enormous resource base can support stronger domestic manufacturing.

The message from the organisers is clear: the continent’s raw materials should not only leave African soil as commodities; they should increasingly become the foundation for African industrial production

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