Editorial

Expectations From New Revenue Formula

Published

4 years ago

April 22, 2022

Thursday, April 7, 2022, the Chairman of Revenue Mobilisation, Allocation and Fiscal Commission
(RMAFC), Elias Mbam, presented the report of the proposed new revenue allocation formula for Nigeria to President Muhammadu Buhari. This is coming 30 years after the last exercise was carried out in 1992, during the military regime of Ibrahim Babangida.
Highlighting the key recommendations in the report, Mbam said the proposed vertical revenue distribution formula suggested 45.17 per cent for the Federal Government, 29.79 per cent for state governments and 21.04 per cent for local governments. Under the current sharing arrangement, the Federal Government receives 52.68 per cent of the revenue share, the states get 26.72 per cent and the local governments 20.60 per cent.
Under the special fund, the commission’s report recommended 1.0 per cent for ecology, 0.5 per cent for stabilisation, 1.3 per cent for natural resource development and 1.2 per cent for the Federal Capital Territory (FCT). According to him, the new sharing formula was reached after extensive consultations with key stakeholders, public hearings across the country, administering of questionnaires, and a study of several other countries with similar fiscal structures to draw useful lessons from.
The commission also visited the 36 states, the FCT, and all the local government areas including the six area councils in Abuja to sensitise and obtain inputs from stakeholders, according to the RMAFC chairman. The chairman added that literature reviews were conducted on the revenue allocation formula in Nigeria dating back to the pre-independence duration.
Memos were reportedly received from the public sector, individuals and private institutions across the country. Mbam further noted that the country’s political structure had altered since the last review in 1992, with the addition of six more states in 1996, bringing the number of states to 36. At the same time, the number of local government councils also increased from 589 to 774.
The revenue allocation formula is the fraction of resources accruing to the federation that goes to each component of the nation. It also specifies the resources conserved in the areas where they are produced, as well as the proportions of the revenue accruing to the collecting agencies of government. The lack of justice and fairness in the distribution of the resources often results in tension and controversies in the polity.
President Buhari’s reaction to the new income distribution formula is commendable. In particular, he said he would await the outcome of the constitutional review process before submitting the report to the National Assembly. He assured the commission’s members that the Federal Government would conduct an internal review and approval process for the report shortly.
Buhari said, ‘‘Considering the changing dynamics of our political-economy, such as privatisation, deregulation, funding arrangement of primary education, primary health care and the growing clamour for decentralisation, among others, we must take another look at our revenue sharing formula, especially the vertical aspects that relate to the tiers of government.”
If the new revenue-sharing procedure gets approval, the Federal Government will have its allocation reduced by 3.33 per cent. However, the most important issue with Nigeria is not how revenue is shared, but the revenue itself. Nigeria’s revenue to Gross Domestic Product (GDP) is about 8 perc ent while the average for Africa is 18 perc ent. Hence, it is more productive to concentrate efforts on improving revenue generation across the board than the fixation on sharing. We have a huge revenue problem.
The National Assembly should step up efforts to amend the relevant section of the Constitution for quick implementation of the new revenue formula. The Federal Government must immediately subject the report to its review and approval processes. We hail RMAFC for the meticulous work in carrying out its constitutional tasks. Nigerians, particularly state and local governments, are applauded for contributing to this development through the extensive stakeholder engagement processes.
At the height of the negotiating process of the current minimum wage of N30,000, the states (under the aegis of the Nigeria Governors’ Forum), proposed a fresh formulation to give them more resources. Governors cited their inability to pay. However, most of the governors have been reckless with the allocations they have been receiving, resulting in several states owing workers’ salaries and pension arrears. While state and local governments deserve to get more, the derivation on natural resources should also be jacked up with legally binding provisions on regular upward adjustments.
Nevertheless, the new sharing format is not the universal remedy for Nigeria’s stunted economic outlook. For now, Nigeria is a poor country. The World Bank estimates its Gross Domestic Product at $375.8 billion, the largest in Africa, but it is a deceptive narrative. At 200 million, its population far outstrips that of any other country on the continent. Our nation has been described by the World Poverty Clock as the global poverty capital, where 93 million people live below the $1.90 per day threshold.
The continuous sharing of oil resources currently generated will not be of significant help. The three tiers of government will permanently be bogged down in a financial crisis, primarily because Nigeria’s current structure is a dangerous aberration. For the nation to be progressive and dynamic, equity and justice have to be promoted in our federal system. Also, the retrogressive culture of entitlement to oil revenue should end. Ideally, the states should strive to become centres of development.
Across Nigeria today, the consensus is that there is an urgent need to devolve more financial resources from the centre to the states and local governments. This is to ensure that the tiers of government can carry out their functions and improve economic growth and development. While we endorse that agitation, we strongly believe that Nigeria could only attain its dream of development by operating true fiscal federalism, where every tier of government generates its revenue and controls the bulk of it, just as it was in the First Republic.

Editorial

Time For GL 17 In Rivers

Published

1 day ago

January 12, 2026

The Tide

Rivers State is indeed fortunate to be led by Governor Siminalayi Fubara, whose remarkable and progressive disposition towards workers has distinguished him from his predecessors since the return to democracy in 1999. His approach to governance reflects empathy, balance and a genuine understanding of the civil service as the engine room of development.

Before his assumption of office, civil servants endured eight excruciating years under the immediate past administration of Chief Nyesom Wike, marked by painful stagnation and systematic neglect. Promotions were withheld, gratuities ignored, annual increments denied and employment processes shrouded in opacity, leaving workers demoralised and disillusioned.

Governor Fubara’s emergence, however, brought a decisive and restorative shift. Long overdue promotions were approved to cover lost years, gratuities were paid and continue to be honoured, while the once suspended Christmas bonus was revived after sixteen years, rekindling hope among public servants.

Even more commendable was the transparent employment process, particularly in the education sector, which injected fresh credibility and renewed confidence into government recruitment. These actions clearly signal a leader determined to rebuild trust between the state and its workforce.

In the same spirit of promoting workers’ welfare, it is both logical and timely to urge the governor to implement the Consolidated Grade Level 17 for civil servants in Rivers State. This call is reasonable and justified, given his proven commitment to labour-friendly reforms.

Grade Level 17 represents a modernised and inclusive salary structure where multiple allowances are consolidated into a single enhanced basic salary. This system simplifies remuneration, rewards seniority and aligns pay with responsibility and service delivery.

In states where this structure is operational, directors are rightly placed on Grade Level 17 rather than 16, ensuring equitable recognition and appropriate compensation. Rivers State should not remain an exception to a standard already accepted nationwide.

It is noteworthy that the Federal Government, many states and even local government councils across the country have implemented this policy. As a former civil servant himself, Governor Fubara possesses a personal and practical understanding of its value and necessity.

Rivers State occupies a strategic and influential position in the federation, economically and politically. Implementing Grade Level 17 would significantly boost morale, reinforce loyalty and inspire greater dedication among civil servants.

The argument that Rivers cannot afford this reform is untenable and unconvincing. It is unacceptable for a state with vast resources to trail behind others that are less financially endowed yet have successfully enforced the policy.

One clear advantage of implementing Grade Level 17 is improved motivation and productivity. A valued workforce is invariably a productive workforce, and fair remuneration directly translates into better service delivery.

Another benefit lies in the retention of experienced professionals who might otherwise seek opportunities elsewhere. Stability, continuity, and expertise are preserved when workers feel respected and adequately rewarded.

The reform would also strengthen institutional capacity and governance, creating a resilient and efficient civil service capable of supporting long-term development goals and policy implementation.

Furthermore, the enforcement of Grade Level 17 will promote a fairer and structured career progression system within the civil service. It will correct long-standing anomalies where officers retire without reaching their deserved peak, despite years of diligent service. Such a reform reassures workers that merit, experience, and dedication are ultimately rewarded.

This is not merely a financial adjustment but a moral and institutional statement about the value Rivers State places on its workforce. By approving Grade Level 17, Fubara will reaffirm his reputation as a compassionate leader and send a clear message that the welfare of civil servants remains central to his administration’s vision for sustainable governance.

Governor Fubara knows firsthand the harsh realities workers face as salaries struggle to meet basic needs. By the end of 2024, over twenty states had adopted the structure, with more joining, making Rivers’ delay increasingly indefensible.

If implemented, this policy will cement Fubara’s place in history as a visionary reformer whose legacy will endure. When the story of the Rivers State civil service is written, his name will be etched in gold, for it is fundamentally unfair for workers to stagnate endlessly on one grade level when a proven solution lies within reach.

Editorial

For A Prosperous 2026

Published

2 weeks ago

January 2, 2026

The Tide

As 2026 begins, Nigeria stands once again at a defining crossroads. The expectations of citizens are high, patience is thin, and the responsibility of leadership has never been more urgent. This year must not be another season of rhetoric; it must be a year of deliberate action that restores confidence in the country and renews hope among the people.

Foremost on the national agenda is security. From terrorism and banditry to kidnapping and communal violence, insecurity continues to erode lives, livelihoods, and national cohesion. Government must strengthen the current fight against insecurity by improving intelligence gathering, equipping security agencies adequately, boosting morale, and deepening cooperation among federal, state, and local authorities.

In this effort, continuous collaboration with strategic partners such as the United States remains crucial. Beyond military support, such partnerships should focus on intelligence sharing, counter-terrorism training, cyber security, and capacity building for law enforcement. Nigeria must leverage international alliances while retaining firm ownership of its security strategy.

Equally pressing is the ailing economy. Inflation, unemployment, and currency instability have placed enormous pressure on households and businesses. 2026 should be the year of hard economic choices—fiscal discipline, support for local production, targeted social protection, and policies that encourage investment, especially in agriculture, manufacturing, and technology.

Infrastructural development must also move from promise to performance. Roads, rail, power, ports, and digital infrastructure are not luxuries but foundations of growth. A clear focus on completing ongoing projects, rather than endlessly inaugurating new ones, will signal seriousness and deliver measurable benefits to citizens.

As the nation looks ahead, preparations for the 2027 general elections must begin now. Credible elections are central to democratic stability. Political actors should moderate their conduct, while citizens must be encouraged to engage peacefully and responsibly in the democratic process.

The Independent National Electoral Commission (INEC) has a special duty in this regard. Early preparations—logistics, voter education, technology upgrades, and staff training—are essential to avoid the familiar last-minute challenges. Transparency and consistency from INEC will go a long way in rebuilding public trust.

In Rivers State, 2026 carries its own weight of expectations. Immediate attention must be paid to preparations for the February bye-elections to fill two vacant seats in the State House of Assembly. INEC, political parties, security agencies, and community leaders must work together to ensure peaceful, credible polls free from intimidation and violence.

Beyond the bye-elections, the state must deliberately cultivate peace as it moves toward the 2027 elections. Rivers has paid a heavy price in the past for political tension and conflict. The lessons are clear: development cannot thrive in an atmosphere of perpetual crisis.

The resurging political crisis in the state must therefore be urgently contained. All stakeholders—across party lines—should put Rivers first, choosing dialogue over confrontation. Institutions must be respected, and the rule of law upheld, to prevent political disagreements from degenerating into instability.

Governor Siminalayi Fubara’s administration must remain focused and undistracted. Governance demands clarity of purpose. The people elected this government to deliver results, not to be consumed by endless political battles that divert energy from service delivery.

Security remains paramount at the state level as well. A secure Rivers State will attract investment, protect individuals and communities, and enable economic activity. Strengthening collaboration between state authorities, security agencies, and local communities should be a top priority in 2026.

Job creation, especially for young people, must also take centre stage. Education and healthcare require renewed investment, not just in infrastructure but in quality and access. A healthy, skilled population is the strongest asset any state can possess.

Ultimately, 2026 should be a year of reset for both Nigeria and Rivers State, a year when leaders choose responsibility over rivalry and vision over short-term gain. If security is strengthened, institutions are respected, and the welfare of citizens remains paramount, the foundations for a more stable and prosperous 2027 will have been firmly laid.

The media, civil society, and traditional institutions also have a crucial role to play in 2026. Agenda-setting must go beyond politics to issues of accountability, transparency, and civic responsibility. Citizens must be consistently informed, not inflamed; mobilised, not manipulated. A vigilant public space will help ensure that leaders at both national and state levels remain responsive to the people they serve.

History will judge 2026 by the choices made today. Nigeria and Rivers State cannot afford drift or distraction. What is required is steady leadership, collective responsibility, and an unwavering focus on peace, development, and democratic integrity. If these priorities guide action throughout the year, 2026 can become a turning point rather than another missed opportunity.

Editorial

Task Before New Defence Minister

Published

1 month ago

December 8, 2025

The Tide

The appointment of General Christopher Musa as Nigeria’s Defence Minister has been met with widespread approval across the nation, and rightly so. After his commendable tenure as Chief of Defence Staff, where he demonstrated exceptional leadership and strategic acumen, Nigerians are justified in their optimism that he possesses the requisite credentials to tackle the country’s mounting security challenges. This is not merely another political appointment; it represents a deliberate and overdue shift towards placing experienced military personnel at the helm of our defence apparatus. The stakes could not be higher, and the nation’s expectations are correspondingly elevated.

For once, the Senate demonstrated the thoroughness that Nigerians have long demanded from their legislators. During approximately five hours of screening, General Musa faced rigorous questioning rather than the perfunctory “take a bow and go” treatment that has become the hallmark of senatorial confirmations. This meticulous approach signals a refreshing departure from the rubber-stamp mentality that has characterised many previous appointments. The lawmakers deserve commendation for recognising the gravity of the defence portfolio and subjecting the nominee to proper scrutiny. We can only hope this sets a precedent for future ministerial screenings.

President Bola Tinubu deserves credit for making what appears to be a pragmatic and judicious decision. By appointing someone with robust military credentials and intelligence expertise, the President has demonstrated an understanding that Nigeria’s security crisis demands specialised knowledge and battlefield experience. This appointment suggests a willingness to prioritise competence over political patronage, a quality that has been sorely lacking in previous administrations. The President must be encouraged to maintain this standard across other critical appointments.

The departure of Mohammed Badaru Abubakar from the Defence Ministry should serve as a lesson in the importance of matching expertise to responsibility. Whilst Mr Abubakar may possess political acumen, his lack of military background rendered him ill-equipped for the complexities of national defence. He was, in every sense, a square peg in a round hole. The previous arrangement, which saw two politicians manning the Defence Ministry, was nothing short of a misnomer. One cannot credibly oversee military operations without understanding military strategy, tactics, and the psychology of warfare. The mistake should not be repeated.

Whilst we applaud both the President for this appointment and the Senate for their diligent screening, the real test lies ahead. General Musa must now prove his mettle in the theatre of action. Words and credentials, however impressive, mean little without tangible results. Nigeria has suffered too long under the scourge of insecurity, with bandits, terrorists, and kidnappers operating with impunity across vast swathes of the country. The new minister must act decisively to save the nation from the embarrassment of continued security failures. The time for excuses has passed; Nigerians demand results.

During his screening, General Musa made a particularly important pledge: to end the patronage of bandits and terrorists by state governors. This commitment strikes at the heart of one of Nigeria’s most troubling security contradictions. The practice of negotiating with criminals, often facilitated or endorsed by state governments, has emboldened these miscreants and transformed banditry into a profitable enterprise. Such negotiations amount to nothing less than aiding and abetting criminality. General Musa’s promise to treat these elements as the criminals they are, rather than as legitimate negotiating partners, is commendable and must be pursued with unwavering resolve. There can be no compromise on this principle.

The new minister must undertake a comprehensive overhaul of Nigeria’s security architecture to enhance military effectiveness. This requires close collaboration with the service chiefs to establish clear objectives and ensure coordinated execution. Beyond structural reforms, General Musa must address the discipline deficit within the military ranks. Reports of corruption, negligence, and complicity in security breaches have eroded public confidence in the armed forces. Restoring discipline is not merely an administrative matter; it is fundamental to rebuilding the military’s credibility and operational effectiveness. Without discipline, no amount of equipment or funding will suffice.

General Musa’s promise to investigate the mysterious withdrawal of soldiers from the school in Kebbi State, which preceded the kidnapping of students, demonstrates a welcome commitment to accountability. This incident exemplifies the inexplicable lapses that have characterised Nigeria’s security response. Someone ordered or permitted that withdrawal, and the timing suggests either catastrophic incompetence or deliberate sabotage. The minister must get to the root of this matter and ensure that culprits face appropriate sanctions. Only through such decisive action can he send a clear message that negligence and complicity will no longer be tolerated.

However, Musa cannot succeed without adequate resources. The Federal Government must provide sufficient funding to enable the Defence Ministry to perform optimally. Next year’s budgetary allocation must reflect the enormous task at hand. It is counterproductive to demand results whilst starving the military of the resources necessary for modern warfare. This includes investment in intelligence gathering, modern weaponry, surveillance technology, and troop welfare. A poorly equipped and demoralised military cannot be expected to defeat well-armed insurgents and bandits who increasingly possess sophisticated weaponry.

The political class must resist the temptation to interfere with the General’s work. Whilst many politicians publicly profess support for the fight against insecurity, evidence suggests that some work surreptitiously to undermine these efforts for personal or political gain. Whether through the aforementioned negotiations with bandits, the protection of criminal elements, or the diversion of security funds, political interference has consistently sabotaged military operations. General Musa must be given the autonomy to perform his duties professionally. Only then can he be fairly held accountable for outcomes. The President must shield him from political machinations and vested interests.

The military must abandon its reactive, fire brigade approach to security operations. Waiting to respond only after attacks have occurred is a strategy of perpetual failure. The armed forces must take the fight to the criminals’ hideouts, conducting sustained offensive operations that dismantle their infrastructure and eliminate their capacity to strike. This requires robust intelligence, rapid deployment capabilities, and the political will to sustain operations until objectives are achieved. Proactive military engagement, not defensive positioning, is what the situation demands.

Nigeria’s porous borders represent a critical vulnerability that demands immediate attention. Countries around the world have recognised that border security is fundamental to national security. India has erected comprehensive fencing along its border with Pakistan specifically to prevent terrorist infiltration. Israel has constructed sophisticated barrier systems along multiple borders. Hungary built fences along its borders with Serbia and Croatia. Even the United States has invested billions in border security infrastructure. These nations understand what Nigeria seems reluctant to acknowledge: that uncontrolled borders invite national disaster.

Our borders remain scandalously porous, serving as entry points for the foreign fighters who constitute a proportion of those conducting attacks on Nigerian soil. The Lake Chad Basin, where Nigeria shares borders with Cameroon, Niger, and Chad, has become a particularly problematic corridor through which terrorists move freely. Without proper border infrastructure, surveillance systems, and adequate personnel deployment, Nigeria will continue to face an endless influx of armed criminals. The Defence Minister must prioritise border security as part of a comprehensive strategy to protect Nigerian lives and territory. The appointment of a competent Defence Minister means little if our borders remain open highways for those who wish us harm.