RMAFC says it may adjust political office holders’ salaries, unchanged since 2008, amid public criticism.
Chairman Mohammed Shehu also announced plans to review Nigeria’s outdated revenue sharing formula for fairness.
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) says it is considering adjusting the salaries of political office holders in Nigeria, a move that has already sparked criticism from labour unions.
Speaking at a press briefing in Abuja on Monday, August 18, RMAFC Chairman Mohammed Shehu disclosed that President Bola Tinubu currently earns ₦1.5 million monthly, while ministers take home less than ₦1 million figures that have not changed since 2008.
“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,” Shehu said.
He argued that the disparity between salaries of top government officials and heads of agencies was problematic, noting that some chief executives earn up to 20 times more than the Attorney-General of the Federation. “That is absolutely not right,” he added.
But the Nigeria Labour Congress (NLC) has opposed the proposal, insisting that any salary increase for politicians would ignore Nigeria’s widening inequality and the numerous hidden allowances that already inflate their total earnings.
Shehu clarified that RMAFC’s mandate does not extend to determining civil servants’ minimum wage, but only covers the remuneration of political, judicial, and legislative office holders. “We are strictly restricted to governors, senators, legislators, ministers, DGs, and other people,” he explained.
Despite public skepticism, Shehu said realistic salaries must be provided to ensure accountability and discourage corruption. “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,” he noted.
Beyond salaries, the RMAFC boss announced that the Commission has also initiated a review of Nigeria’s vertical revenue allocation formula, which determines how federal revenues are shared among the three tiers of government. The current formula, in place since 1992, gives 52.68% to the federal government, 26.72% to states, and 20.60% to local governments, with 4.18% set aside for special funds.
Shehu said the outdated structure no longer reflects Nigeria’s socio-economic realities. He recalled that in 2022, the Commission had proposed a revised formula 45.17% for the federal government, 29.79% for states, and 21.04% for local governments but the recommendation was never implemented by the Buhari administration.
He stressed that with constitutional amendments increasing the fiscal responsibilities of states, it was vital to re-examine fiscal federalism to promote economic growth and reduce overdependence on the centre.
The politics surrounding revenue sharing, Shehu admitted, has long stalled reforms, with successive governments reluctant to reduce the federal government’s allocation. Calls for equity, however, continue to mount as states push for a fairer distribution of national resources.
