The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has announced its intention to push forward with a comprehensive review of the salaries of Nigeria’s political office holders, stressing that the existing pay structure is outdated, inadequate, and no longer reflective of the increased responsibilities carried by office holders in today’s economic climate.
This declaration was made during an official press conference in Abuja on Monday, where RMAFC Chairman, Mohammed Shehu, highlighted the urgent need for reforms in the remuneration framework for public leaders.
According to Shehu, President Bola Tinubu currently earns only ₦1.5 million monthly, while ministers are paid less than ₦1 million each—figures that have remained stagnant since 2008, despite the evolving demands of governance. He stressed that this disparity not only undervalues political leadership but also creates room for unfair comparisons with other public sector positions.
Shehu noted: “You are paying the President of the Federal Republic of Nigeria ₦1.5 million a month, with a population of over 200 million people. Everybody believes that it is a joke.”
He continued: “You cannot pay a minister less than ₦1m per month since 2008 and expect him to put in his best without necessarily being involved in some other things. You pay either a CBN governor or the DG ten times more than you pay the President. That is just not right. Or you pay the head of an agency twenty times higher than the Attorney-General of the Federation. That is absolutely not right.”
His statement immediately sparked public debate. While the RMAFC insists that a salary increase is overdue, the Nigeria Labour Congress (NLC) has strongly rejected the proposal, insisting that Nigeria’s deepening poverty levels, economic hardship, and growing inequality make such an initiative insensitive and unnecessary. The NLC also pointed out that most political office holders already enjoy extensive allowances and hidden benefits, which cushion their finances far beyond their basic salaries.
During the briefing, Shehu emphasized that the Commission is constitutionally empowered only to fix the pay of political, judicial, and legislative office holders—not the civil service or other public sector workers. “We are strictly restricted to political office holders, governors, senators, legislators, ministers, DGs, and other people,” he explained, making it clear that their mandate does not cover minimum wage issues.
Despite widespread opposition, Shehu insisted that the salaries of political leaders must remain realistic and proportional to their responsibilities: “It’s about time that people like you and others should support the commission to come up with reasonable living salaries for ministers, DGs, and the President.”
Alongside salary concerns, Shehu revealed that the RMAFC has also commenced a long-overdue review of Nigeria’s revenue allocation formula, which has remained unchanged since 1992. Currently, the Federal Government takes 52.68 per cent of the revenue, states receive 26.72 per cent, and local governments get 20.60 per cent. Additionally, 4.18 per cent is reserved for special funds, including 1 per cent each for the Federal Capital Territory and ecological fund, 1.68 per cent for the natural resources development fund, and 0.5 per cent for stabilisation.
“In line with this constitutional responsibility and in response to the evolving socio-economic, political and fiscal realities of our nation, the Commission has resolved to initiate the process of reviewing the revenue allocation formula to reflect emerging socio-economic realities,” Shehu told reporters.
He explained that recent constitutional amendments have shifted more responsibilities to state governments, which makes it imperative to reconsider the revenue-sharing structure to allow states more independence and fiscal balance. “The situation has made it essential to re-evaluate the structure of fiscal federalism in order to foster economic growth in individual states, enabling them to become independent from the central government and ensuring equity, responsiveness, and sustainability,” Shehu added.
He further recalled that in 2022, under former Chairman Elias Mbam, the Commission submitted a report recommending a new formula—45.17 per cent for the Federal Government, 29.79 per cent for states, and 21.04 per cent for local governments. However, this was never implemented under the Muhammadu Buhari administration.
For decades, revenue allocation has been one of Nigeria’s most contentious governance issues, dating back to before independence in 1960. Several administrations have attempted to revise the formula to ensure fairness, but political considerations and fears of reducing the Federal Government’s share have repeatedly stalled the process. In 2013, RMAFC conducted consultations across all 36 states, engaging stakeholders on a new formula, but once again, progress was blocked by political resistance.
The Commission insists that both salary reforms for office holders and revenue allocation adjustments are crucial to ensuring that governance in Nigeria remains functional, equitable, and sustainable in the long run.