COVER
RMAFC Begins Review of Revenue Allocation Formula
By Tony Obiechina, Abuja
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, with a view 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.The Chairman of the Commission, Dr. Mohammed Bello Shehu who announced this at a press conference on Monday 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.Shehu said the Commission derived its powers from 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.According to him, this devolution of powers, 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. 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 added.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”, he further stated.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 opening remarks, the Federal Commissioner representing Katsina State and Chairman of the Revenue Formula Committee, Kabir Muhammad Mashi, 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).”The committee is expected to submit its full report by December 2025.Business News
DBN Signs $61m Credit Deal With AfDB, Unveils Support Initiative Report
By Tony Obiechina, Abuja
The Development Bank of Nigeria Plc (DBN) has launched DAWN: DBN Action for Women in Nigeria, unveiled its Impact Report and presented MSME Data Assets at the seventh edition of Annual Lecture held in Abuja.
DBN, in a statement on Thursday, said while delivering a welcome address, its Managing Director and Chief Executive Officer, Dr Tony Okpanachi, said the central challenge was no longer reforms themselves but ensuring benefits reach businesses at end of the chain.
He asked how to make sure benefits reach traders in Onitsha, fabricator in Aba, farmer in Kebbi and young founder in Yaba, noting that MSMEs accounted for about half of Nigeria’s GDP and more than eight in every ten jobs, adding that when reform works for MSMEs it works for most Nigerians.
He explained that reform becomes prosperity only when entrepreneurs can act on it whether through long tenor loans to buy equipment, banks willing to take risk or skills and records needed to grow.
He said working through Participating Financial Institutions DBN provides longer term funding, partial credit guarantees through subsidiary Impact Credit Guarantee Limited and capacity building including Entrepreneurship Training Programme.
He disclosed that as at December 2025 DBN had disbursed a cumulative N1.4 trillion to MSMEs through 84 Participating Financial Institutions creating about 1.6 million jobs nationwide.
Under the new five year strategy, the Bank aims to reach more than two million MSMEs with deliberate targets for women led businesses, youth led businesses and underserved states.
On DAWN, Okpanachi said finance alone had not enabled enough women-led businesses to scale.
He said initiative brings together financing, guarantees and credit support, technical assistance, outcome linked grants and market linkages delivered through banks, microfinance institutions, fintechs, aggregators, cooperatives and direct channels.
Its priority sectors are agriculture and exports, healthcare, arts and creatives, technology and green business.
He said DAWN is about moving gender focused lending beyond intention and turning access into opportunity.
On the sidelines of the lecture DBN and African Development Bank held a signing ceremony of AfDB DBN 61 million United States dollars Gender Line of Credit development that reinforces Bank commitment to women led enterprises.
Okpanachi urged Participating Financial Institutions to extend lending into sectors and states where access to finance has been limited, policymakers and regulators to measure reform by what changes for business at end of chain and MSMEs to formalise, keep good records and use support now available.
The Vice President as Special Guest of Honour was represented by Dr Fred Iklaga Senior Technical Adviser in the Office of Special Adviser to the President on Economy.
Keynote speakers were Chief Executive Officer of MTN Nigeria, Dr Karl Toriola, and Chairman of Nigeria Sovereign Investment Authority, Dr Segun Ogunsanya.
Fireside chat featured Chief Executive Officer of Sterling Bank Abubakar Suleiman, manufacturing and trade entrepreneur Mrs Omoyemi Chukwurah and by video Kola Masha of Babban Gona.
The Secretary to the Government of Federation, represented by Augusta Warren Bekaredebo, said 2026 tax reforms would bring relief to many small businesses expressing optimism that a lot of businesses will be smiling by next year because they will be exempted from tax.
COVER
NLC Threatens Nationwide Action as Talks With FG Collapse
By Tambaya Julius, Abuja
The Nigeria Labour Congress (NLC) has threatened possible nationwide industrial action following the failure of talks with the Federal Government over workers’ welfare, petrol prices and other outstanding labour demands.
The warning came after a meeting between the government and organised labour at the Ministry of Labour in Abuja on Thursday, October 22, ended without an agreement.
The congress has given the Federal Government until Tuesday, October 27, to make meaningful progress on the issues, warning that its relevant organs would decide the next line of action if the next meeting fails to produce concrete commitments.
The NLC has also directed its affiliates, state councils and civil society allies to begin mobilising members for possible nationwide action.
In a statement issued after the meeting, the NLC Acting General Secretary, Benson Upah, expressed disappointment over what he described as the government delegation’s lack of preparedness for the negotiations.
According to the congress, organised labour presented its demands in good faith but left the meeting without any concrete commitments from the government.
The demands include a reduction in petrol prices to 2024 levels, renegotiation of the national minimum wage, implementation of agreed tax relief measures and resolution of the terms of settlement involving the Joint Health Sector Unions (JOHESU).
The congress also called for the resolution of issues raised by the Joint Public Service Negotiating Council (JPSNC) over peculiar allowances, wage awards and hazard allowances.
The NLC said the government delegation lacked the necessary authority to engage meaningfully on the issues presented by labour representatives.
“The meeting between the Federal Government and organised labour, convened at the Ministry of Labour in Abuja on 22nd October 2026, has ended without resolution,” the statement said.
It added that the Minister of Labour requested that the meeting be adjourned until October 27 to allow the government to prepare adequately for further discussions.
The preparations, according to the statement, would include bringing relevant ministers and heads of departments and agencies to the negotiating table.
The congress said it remained open to dialogue but would not accept continued delays in addressing workers’ concerns.
“We will report back to our organs, and if no meaningful progress is made on Tuesday, the relevant organs of the NLC will decide the next line of action,” it said.
The labour body urged workers and members of the public to remain calm while the negotiations continue, even as it directed its affiliates and allies to prepare for possible industrial action.
“However, we urge all affiliates of NLC and TUC; all state councils and our civil society allies to be alert and start mobilising for a possible action across the nation while we hope that the tenets of our demands are met by the government,” the statement added.
The October 27 meeting is expected to provide another opportunity for both sides to address the outstanding issues and prevent a possible escalation of the dispute.
However, the NLC’s decision to begin mobilisation suggests that tensions could rise if the next round of talks fails to produce meaningful progress.
COVER
Election Campaigns: FRSC Bars Officers from Politicians’ Escort
The Federal Road Safety Corps (FRSC) has barred its personnel from escorting politicians during campaigns for the 2027 general elections.
Zonal Commanding Officer, RS6, ACM Abimbola Owolabi, gave the directive during her maiden visit to the Cross River Command in Calabar on Wednesday.
Owolabi said patrol vehicles and sirens must not be used for political activities or private engagements, including weddings and funeral processions.
She directed officers deployed to campaign venues to focus exclusively on traffic management to prevent congestion and road crashes.
The zonal head warned personnel against leading political convoys or providing escorts for politicians, stressing that official vehicles must not be used for unauthorised purposes.


