In a federal system, there are different levels of government, each with its own set of constitutional responsibilities.   Because the corresponding expenditure obligations are often different from the allocation of tax, powers and revenue sources, a system of revenue allocation is required as a mechanism for redressing the consequent mismatch between expenditure, obligations and revenue sources. The overall objective of such a system of revenue allocation would be to enhance economic development while simultaneously minimizing intergovernmental conflicts.

The granting of internal autonomy to the regions under the Richards Constitution of 1946 and the subsequent sharing of responsibilities between the federal and regional governments provided the starting point for what has continued to be a persistent and often controversial national debate on revenue allocation. The need for new searchlight on revenue enhancement and mobilization, overtime and space, also provides another sound justification for the establishment of a permanent commission.

In the course of time and in view of policy instruments for the achievement of national objectives, there were periodic reviews, on ad hoc basis, on the fiscal jurisdiction of the various tiers of governments and the assignment of revenue allocation. These reviews were carried out by eight ad-hoc revenue allocation Commissions, viz: Philipson Commission (1946), Chick’s Commission (1953), Raisman Commission (1958), Binns Commission (1964), Dina commission (1966), Aboyade Committee (1977), and Okigbo Commission (1980). All these Commissions, excluding the Aboyade and Okigbo Commissions, were able to ensure the establishment of region/state government autonomy over certain revenue sources (e.g. personal income tax) and the establishment of federal government’s exclusive control of some revenue sources (e.g. Armed forces income tax). Also, they were able to ensure the creation of a Distributable Pool Account into which other revenue (including import & export taxes, mining rents and royalties, etc) were paid and which was subsequently distributed between the federal and regional/state governments and the development of revenue allocation principles, such as derivation, population, even development, etc on the basis of which fund in the Distributable Pool Account were shared among regions/states. The Aboyade and Okigbo Commission on the other hand fine-tuned the works of the previous Commissions toward equitable justification.

The government of General Ibrahim B. Babangida, guided by the desire to depart from the narrow and transient objective of devising populist revenue sharing formulae, inaugurated the then National Revenue Mobilization Allocation and Fiscal Commission, on September 6th, 1988, which was statutorily established by Decree No 49 of 1989. Equally, the 1999 Constitution Section 153-subsection (1) provides for the establishment of the Revenue Mobilization Allocation and Fiscal Commission. President Olusegun Obasanjo inaugurated the new Commission on September 20th, 1999 with 37 Commissioners representing each State and Abuja.

The establishment of a permanent body, going by the issue in Nigeria’s fiscal finance which have generated heated public debate, which intensity has been a manifestation of the complexity of the issues involved, and the demand by Nigerians for an equitable revenue sharing formula, is invariably a novel attempt by Government towards ensuring prudent, efficient and stable revenue sharing formula and fiscal policy for the nation.

Functions of the Commission
The Commission derives its powers and constitutional functions from paragraph 32 of Part I of the Third Schedule to the 1999 Constitution of the Federal Republic of Nigeria.  The Commission, accordingly, has been vested, constitutionally, with powers and responsibilities to:

    • Monitor the accruals into and disbursement of revenue from the Federation Account;
    • Review from time to time, the revenue allocation formulae and principles in operation to ensure conformity with changing realities: Provided that any revenue formula which has been accepted by an Act of the National Assembly shall remain in force for a period of not less than five years from the date of commencement of the Act;
    • Advise the Federal, State and Local Governments on fiscal efficiency and methods by which their revenue is to be increased;
    • Determine the remuneration appropriate to political office holders, including the President, Vice-President, Governors, Deputy Governors, Ministers, Commissioners, Special Advisers, Legislators and the holders of the offices mention in Section 84 and 124 of the Constitution; and
    • Discharge such other functions as are conferred on the Commission by the constitution or any Act of the National Assembly.


The Commission is an autonomous body and is not subject to the direction or control of any other authority or person in the exercise of its power to make appointments or to exercise disciplinary control over persons.

Unlike in the past where Ad-hoc Committees and Commissions were set up to review the fiscal arrangements in the country, the Commission is now a permanent institution.   As a permanent institution, the Commission’s approaches shall necessarily be different from those of previous Ad-hoc bodies. Two of these differences are worth highlighting. First, the reports of the Commission will be more frequent, and be in memo form. Secondly, its assignments will be carried out in a more discrete manner. Yet, the Commission wants to benefit from as wide and varied a viewpoint as possible, it organizes seminars, engages in frequent brainstorming sessions and uses the services of consultants and media where and when necessary. It welcomes memoranda, particularly those objectively put forward by institutions, groups and individuals.


An Executive Chairman, Engr. Hamman A. Tukur mni, heads the new Revenue Mobilization Allocation and Fiscal Commission. It has a board comprising a member from each State of the Federation and the Federal Capital Territory. It also has the management comprising the senior staff that undertakes the regular civil service routines. The Commission has the office of the Chairman with operational units, the office of the Secretary and seven departments namely:

  1. Department of Allocation
  2. Department of Mobilization
  3. Department of Personnel Management
  4. Department of Planning, Research and Statistics
  5. Department of Finance
  6. Department of Fiscal Efficiency
  7. Department of Oil & Gas
  8. Public Relations and Information Unit
  9. Legal Unit
  10. Internal Audit Unit
  11. Protocol Unit
  12. Management of Information Systems Unit (MIS Unit)


The Nigeria National Petroleum Corporation (NNPC)

The Nigeria Customs Service (NCS)

The Federal Inland Revenue Service (FIRS)

The Central Bank of Nigeria (CBN)

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