The Governor of Adamawa State, Ahmadu Umaru Fintiri, has formally called for a significant upward review of the vertical revenue allocation to states and local governments to enable them to meet the escalating costs of governance and infrastructure development. Speaking at the commencement of a nationwide zonal sensitization exercise organized by the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) in Yola on Thursday, April 16, 2026, the Governor argued that the current formula is outdated and fails to reflect the current socio-economic realities of the federation. Under the existing structure, the Federal Government receives $52.68\%$, while the 36 states and 774 local governments share $26.72\%$ and $20.60\%$ respectively a distribution Governor Fintiri described as “top-heavy and unsustainable” for a developing democracy.
The Chairman of the Revenue Mobilization Allocation and Fiscal Commission, Mohammed Bello Shehu, led the delegation of commissioners to the state house, noting that the commission is mandated by the 1999 Constitution (as amended) to periodically review the allocation indices to ensure equity and national stability. Supporting context from the commission indicates that this 2026 review cycle is particularly focused on “efficiency and performance,” with new variables being considered, such as internal revenue generation efforts and the impact of climate change on state economies. Governor Fintiri emphasized that with the recent implementation of the new national minimum wage and the removal of fuel subsidies, the financial burden on state executives has tripled, making an increase in the state share to at least $35\%$ a “matter of survival.”
Stakeholder reactions during the consultation have highlighted a unified front among the governors of the North-East sub-region. The Secretary to the State Government of Adamawa, Auwal Tukur, and the Commissioner for Finance, Dr. Ishaya Dabari, joined the Governor in advocating for a reduction in the Federal Government’s share, arguing that the sub-national entities are the true “engines of development” that interact directly with the populace. However, the Federal Government has historically resisted a significant reduction in its share, citing the heavy costs of national security, external debt servicing, and the maintenance of critical federal trunk roads. The RMAFC Chairman assured stakeholders that the commission would remain an “impartial umpire” and that all submissions would be analyzed based on their merits before a final proposal is sent to President Bola Ahmed Tinubu for onward transmission to the National Assembly.
Economic and fiscal analysts observe that the revenue sharing debate is a perennial flashpoint in Nigeria’s federalism. Dr. Emeka Okoro, a public policy expert, suggests that while an increase in state allocation is justified by the rising cost of services, it must be accompanied by stricter “accountability frameworks” to prevent the mismanagement of funds at the local level. He argues that many states remain dangerously dependent on the Federation Account Allocation Committee (FAAC) disbursements and have failed to grow their independent revenue bases. Analysts maintain that a fairer formula should include “incentive-based” components that reward states for fiscal transparency and the creation of business-friendly environments, rather than just population or landmass.
The broader implications of this nationwide consultation point toward a potential structural shift in Nigeria’s fiscal architecture by the end of 2026. If the RMAFC successfully navigates the competing interests of the three tiers of government, the resulting formula could provide the much-needed “fiscal breathing room” for states to tackle the 133 million Nigerians living in multidimensional poverty. Conversely, a failure to reach a consensus could deepen the “trust deficit” between the center and the peripheries. As the commission moves its consultation to the other five geopolitical zones, the focus remains on whether the Federal Government is truly willing to relinquish its financial dominance in favor of a more decentralized and functional federalism.
