Reforming Nigeria’s Revenue Allocation For Equitable Growth

By Salisu Ibrahim

Nigeria’s fiscal federalism is at a crossroads, demanding urgent reform to drive equitable growth and unlock the country’s full potential.

In the last 30 years, the formula that has been in use, is widely criticized as outdated and unfair, hence the Nation’s revenue allocation system has remained contentious and largely static.
Stakeholders are of the view that in spite of massive changes in the country’s socio-economic landscape, the framework for the Nation’s revenue allocation system is stuck.
This development has been sparking controversy among various interests groups, while reinforcing demands for reform that would be seen as more equitable and sustainable.

To revamp the revenue allocation system and incentivize growth, promote fairness, empower states and drive development, stakeholders, unanimously agreed that Nigeria must adjust the country’s focus from merely “sharing the cake” to “baking the cake”. This, according to experts is what will guarantee growth of the economy and increase revenue generation.

Since, the time for that change is now, the Administration of Dr. Mohammad Bello Shehu, Chairman of the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) has taken the bull by the horn, to address the longstanding challenges that intensified agitations from various interests, and present a glimmer of hope.
The administration has come up with bold and proactive measures towards addressing the looming challenges, putting in place strategic planning towards leveraging collaboration with relevant agencies and experts.

No one is in doubt that the country’s fiscal federalism requires a robust revenue allocation formula that balances federal, state, and local government needs. Dr. Shehu has stepped up measures to address the challenges.
Dr. Shehu’s Administration has come up with an assessment of the situation that will finally settle the matter amicably.

The fact is, prior to this development, Nigeria has over-relied on oil revenue, use of inadequate data, while unable to aggregate competing interests among federal, state, and local governments.
These challenges continue to hinder the nation’s socio-economic development and to a large extent fueling regional tensions.

Dr. Shehu, has therefore introduced a new data-driven formula that reflects Nigeria’s economic and constitutional realities that aim to ensure fair and equitable distribution of resources.

The Nation’s road to fiscal reform has not been without challenges, but under the Administration of Dr. Shehu, a new, data-driven formula has been put in place to reflect the country’s economic and constitutional realities. This new approach prioritizes population, developmental needs, revenue generation capacity, land mass and terrain.

At an interactive session organized by the Revenue Mobilization, Allocation and Fiscal Commission (RMAFC) recently to examine and proffer solutions, experts who participated in the Stakeholders engagement are of the view that the new approach introduced by the administration of Dr. Shehu, will go a long way to increasing the nation’s revenue allocation to states, while improving fiscal autonomy, thereby enhancing mutual cohesion and balancing the socio-economic development of the country.
The new formula will enable governments to deliver essential services like education, healthcare, and infrastructure and empowers subnational governments to meet their constitutional obligations effectively while maintaining national cohesion and macroeconomic stability.

According to Dr. Shehu,the idea is to set in motion, strategies for overcoming existing challenges, reflecting Nigeria’s fiscal responsibilities, while addressing issues of demographic shifts, and governance realities, taking into consideration, the challenge of inadequate data, over-reliance on oil revenue, and competing interests that have made it difficult to fairly address various concerns.

What stands out so far is that the Commission under Dr. Shehu has developed a fair and far reaching measures, accepted by various experts and stakeholders.

So far, Nigeria’s revenue allocation is having a robust reform, under Dr. Shehu’s Administration. It is making significant strides that’s aiming to drive development fairly and equitably, by diversifying revenue sources, reducing dependency on oil revenue, while ensuring equitable distribution.
It’s therefore time for Nigerians to approach the dialogue as custodians of a shared destiny, while prioritizing the nation’s future over individual interests.

Salisu Ibrahim contributed this piece from Kano, could be reached on faccageltd10@gmail.com

GOVERNOR AKY’S BALANCING ACT: POWER, LOYALTY AND THE POLITICS OF KANO’S FUTURE

By Barrister. Aminu Hussaini

In a move that has redefined the contours of Kano politics, Governor Abba Kabir Yusuf (AKY) might have crossed over to the All Progressives Congress (APC) while deliberately retaining his place within the Kwankwasiyya movement led by his long-time political mentor, Senator Dr. Rabiu Musa Kwankwaso. To casual observers, the decision appears paradoxical. To seasoned students of Kano’s political history, it is a carefully calibrated strategy – bold, pragmatic and deeply rooted in the State’s unique political culture.

Kano politics has never been governed by rigid binaries. From the days of Mallam Aminu Kano to the era of Kwankwaso, political movements in the state have often outlived party labels, functioning more as identities than platforms. AKY’s decision fits squarely within this tradition. By moving to the APC, he aligns Kano State with the party controlling the federal government, a move that promises smoother access to national power, resources and influence. By remaining Kwankwasiyya, he reassures his grassroots base that his political soul has not been traded for convenience.
This is not defiance; it is deference of a higher order. Governor Yusuf has been careful to acknowledge Kwankwaso not merely as a former governor or party leader, but as a father figure and mentor whose political investment in him is both personal and historical. In Kano’s culture, mentors are not discarded lightly. They are respected even when paths diverge.

AKY’s posture reflects a moral obligation deeply understood by the electorate: gratitude is not weakness, and loyalty does not preclude growth.
Crucially, the governor has avoided the trap that has undone many politicians before him-framing political evolution as rebellion. He has not dragged Dr. Kwankwaso into an unwanted defection, nor has he denounced the movement that produced him. Instead, he has separated institutions from individuals and party from philosophy. Kwankwasiyya, in this reading, is a political identity and social movement; APC is a governing vehicle. Kano State – not factional pride, is the destination.

Historically, Kano State Governors who isolated themselves from either the grassroots or the centre paid a heavy price. Those who fought Abuja struggled to deliver. Those who abandoned their base lost legitimacy. AKY appears determined to repeat neither mistake. His strategy is one of balance: consolidate federal cooperation without alienating the red-cap faithful who form the emotional core of Kano’s modern politics.

There is also a maturity in recognising that political mentors are not infallible, nor are they permanent gatekeepers of destiny. By charting his own course-respectfully, cautiously and without public acrimony-AKY signals readiness to lead Kano as governor of all, not as a factional lieutenant. That Dr. Kwankwaso has chosen not to cross over with him only reinforces the autonomy of both men and preserves political peace within the movement.
In the end, this is less about party logos and more about governance. Kano’s challenges-security, infrastructure, education and economic revival-require cooperation, not perpetual opposition. AKY’s manoeuvre, far from being opportunistic, reflects a clear-eyed assessment of power realities and historical lessons.

If politics is the art of the possible, then, Governor Abba Kabir Yusuf has demonstrated rare political intelligence: retaining identity without rigidity, honouring loyalty without captivity, and pursuing Kano’s interest above all else. In a political climate often defined by bitterness and betrayal, this may be his most compelling achievement yet.

Contributed by Barr. Aminu Hussaini, Special Adviser to the Governor of Kano State-AKY on Justice/Constitutional Matters

DAM FOUNDATION UNVEILS TRANSFORMATIVE INITIATIVES IN KOGI ….. Focuses on equipping youths and small-scale entrepreneurs

It was a beehive of activities recently in Okene, Kogi state as the DAM Foundation, a non-profit organization marked the unveiling of three transformative initiatives aimed at strengthening education, community development, and economic empowerment.

The event which was witnessed by the Executive Governor of Kogi state, His Excellency, Usman Ahmed Ododo, also had the Director General of Energy Commission of Nigeria ECN, Dr. Mustapha Abdullahi.

The event underscored the Foundation’s growing role in driving people-centered development and redefining socio-economic progress in the state.

The major highlight of the unveiling was the commissioning of a modern hostel facility, a landmark initiative dedicated to social welfare and dignified living, as well as the DAM Civic Centre; a state-of-the-art space envisioned to serve as a hub for sports, community engagement, dialogue, and cultural activities.

Beyond infrastructure, the DAM Foundation launched a comprehensive empowerment program focused on equipping youths and small-scale entrepreneurs with tools, resources, and financial support. According to the Foundation, the projects represent more than physical achievements; they symbolize hope, opportunity, and a long-term commitment to building a resilient and self-reliant future for Kogi state and its surrounding communities.

The historic highlight of the event was the importance of collaboration between government institutions and private philanthropic efforts in achieving sustainable development goals.

KANO AND THE COST OF POLITICAL ISOLATION

Barrister Aminu Hussaini, in this piece, as his personal opinion, examined Kano’s political history, arguing that Kano, as a hub of economic activities in Northern Nigeria, and a Powerful political bloc in the region, must wake up and play politics not only with a passion but with pragmatism, purpose and strategic alignment with the centre that can deliver real results to its people.

Political analysts are of the view that, politics at its core, is not an exercise in sentiment or protest; it is a contest for power, influence and outcomes.

In every democratic system, numbers matter. Coalitions matter. Access matters. Today’s political reality in Nigeria is stark and undeniable: the All Progressives Congress (APC) controls 29 States, while all other parties combined govern just seven.

This imbalance is not cosmetic – it defines the flow of influence, federal attention and development opportunities. Kano State must therefore confront an uncomfortable but necessary truth: strategic alignment with the national majority is no longer optional; it is imperative.

Kano is not a peripheral state. It is Nigeria’s most politically significant Northern State by population, economic activity and historical influence. For decades, Kano has shaped national politics, produced national leaders and acted as a bellwether for political trends in the North. Yet, influence is not sustained by history alone. In modern governance, relevance is maintained by being at the table where decisions are made – not watching from the sidelines.

The federal system rewards cooperation, not isolation. States aligned with the centre enjoy smoother access to federal interventions, accelerated approvals for infrastructure projects, stronger representation in national policymaking and enhanced bargaining power within intergovernmental forums.

This is not a partisan fantasy; it is political reality, observable across administrations and parties since 1999. When a party dominates both the centre and the majority of States, internal party mechanisms-not opposition platforms – become the main arena where national priorities are negotiated.

Those arguing for political “independence” or “romantic opposition” must answer a simple question: what tangible benefits has political isolation delivered to Kano in recent years? Opposition politics may energize rallies and social media debates, but it rarely translates into handout roads, rail, power infrastructure, industrial clusters or sustained federal investments. Development is not awarded for moral positioning; it is negotiated through power structures.

Kano’s past offers sobering lessons about the price of strained federal relations. During the second republic, the state was governed by Muhammad Abubakar Rimi of the People’s Redemption Party (PRP); an ideologically driven but federally isolated administration. At the centre, the National Party of Nigeria (NPN) controlled federal power. The result was an unprecedented intervention: President Shehu Shagari appointed Lawal Kaita as presidential liaison officer in Kano, effectively supervising federal agencies in the state and asserting central authority over federal interests. This arrangement, widely seen as a response to Rimi’s confrontational posture, underscored how political estrangement can weaken a state’s bargaining power and invite federal encroachment rather than cooperation.

The lesson resurfaced decades later under Ibrahim Shekarau’s administration (2003–2011). Governing Kano while the PDP dominated the centre, Shekarau’s government often found itself outside the inner circles where federal priorities were shaped. While Kano did not grind to a halt, it increasingly lost momentum in attracting major federal projects and strategic appointments compared to states aligned with the ruling party. The absence of strong political synergy meant slower access to opportunities that flowed more easily to allied states.

In contemporary times, the pattern remains familiar.
The current Kano State administration has been marked by frequent friction with federal institutions, ranging from disputes with federal security agencies to open political hostilities with influential figures within the ruling establishment. These tensions have created an atmosphere of distrust and chaos, diverting energy from development-driven engagement and weakening Kano’s ability to negotiate effectively for federal investments, institutional support and national influence. These episodes are not coincidences; they reveal a consistent structural reality of Nigerian politics.

It is also important to dispel the myth that alignment equals surrender. Strategic alignment does not mean abandoning Kano’s identity, interests or bargaining power. On the contrary, Kano’s size and electoral weight make it a powerful bloc within any dominant political platform. Aligning with the majority offers Kano the opportunity to shape national policy from within, influence party direction and secure leadership positions that directly benefit the state’s long-term development agenda.

The numbers speak loudly. With 29 APC-governed states, national consensus within the ruling party effectively determines legislative priorities, budgetary focus and policy direction. Remaining outside this consensus does not make Kano principled; it makes Kano peripheral. In a country as competitive and resource-constrained as Nigeria, no serious state can afford such self-marginalization.

Kano’s political elite and stakeholders must therefore ask not what feels emotionally satisfying, but what delivers results. Roads, water projects, education funding, healthcare upgrades, security interventions and economic revitalization require federal-state synergy. That synergy is strongest when political alignment exists.

History favours those who read the moment correctly. Kano has never been a follower state-it has always been a strategic one. The present moment calls for pragmatism over posturing, realism over rhetoric and outcomes over outrage. Aligning with the national majority is not about party colors; it is about securing Kano’s rightful place in Nigeria’s future.

Politics is arithmetic before it is poetry. Today, the arithmetic is clear: 29 versus 7. Kano cannot afford to be sidelined-not in 2026; not in the years leading to the 2027 elections. The State’s political elite, business community, civil society and traditional institutions must prioritize strategic engagement with political majority at the centre. This is not to sacrifice local identity or autonomy-but to secure the tangible dividends of governance: infrastructure, jobs, investment, healthcare, education and security.

History has taught Kano painful lessons about the cost of opposing the centre without sufficient leverage. It is time to play politics not only with passion but with pragmatism, purpose and strategic alignment that delivers real results to the people. Kano must wake up, recalibrate and choose strategic relevance over symbolic resistance.

Barrister Aminu Hussaini Sagagi could be reached on- +234 8033742424, aminuhussaini173@gmail.com