The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) says Nigeria must face hard questions about how much it pays its leaders — and how it shares money among its tiers of government.
At a press briefing in Abuja on Monday, RMAFC Chairman, Mohammed Shehu, revealed that President Bola Tinubu earns only ₦1.5 million monthly, while ministers receive less than ₦1 million.
These figures have remained unchanged since 2008.
“You are paying the President of the Federal Republic of Nigeria ₦1.5m a month, with a population of over 200 million people. Everybody believes that it is a joke,” Shehu said.
Politicians Earn Less Than DGs
Shehu compared the salaries of political office holders with those of heads of agencies. “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 him twenty times higher than the Attorney-General of the Federation. That is absolutely not right.”
He argued that since 2008, inflation, currency devaluation, and rising national responsibilities have made current earnings “unrealistic and outdated.”
But the plan has already run into opposition. The Nigeria Labour Congress (NLC) warned that reviewing politicians’ salaries upwards while workers struggle is unjust.
An NLC official told a news agency recently: “The President’s salary may be about ₦1.5m a month, but when allowances are added, the total package can exceed ₦100 million. Allowances for medical care, housing, digital services, security, and travel are all buried in the system.”
Old Revenue Formula Back on the Table
Beyond salaries, Shehu said RMAFC had begun reviewing Nigeria’s vertical revenue-sharing formula, in place since 1992.
At present, the Federal Government receives 52.68%, states 26.72%, and local governments 20.60%. An additional 4.18% is carved out for special funds — 1% each for the Federal Capital Territory and ecological projects, 1.68% for natural resources, and 0.5% 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 said.
He explained that amendments in recent years have expanded the fiscal duties of states, making it necessary to rethink fiscal federalism.
“It is essential to re-evaluate the structure so that states can grow their own economies and become less dependent on the centre,” he said.
Long History of Failed Attempts
This is not the first attempt to redraw Nigeria’s revenue formula. In 2013, RMAFC commissioners held a two-week retreat in Calabar and drafted a new sharing plan. It recommended 45.17% for the Federal Government, 29.79% for states, and 21.04% for local governments.
Ambassador Zubairu Dada, then spokesman of the Commission, said the draft was ready for former President Goodluck Jonathan. But Jonathan never sent it to the National Assembly before leaving office.
The late President Muhammadu Buhari also left the proposal in the shadows, despite calls from states struggling to pay salaries and finance projects.
The current formula was designed under President Olusegun Obasanjo and has long been attacked as skewed in favour of Abuja. Political battles and the fear of shrinking federal revenue have kept reforms frozen.
“Despite failed past attempts, this review will be inclusive, data-driven, and transparent. Consultations will involve the Presidency, National Assembly, state governors, ALGON, the judiciary, civil society, private sector, and development partners,” Shehu promised.
The Commission now enjoys financial autonomy after a new law was signed in April 2025. Shehu believes this will strengthen its independence.
Labour Unions Push Back
The NLC insists Nigeria’s inequality gap is too wide for leaders to be asking for more pay.
“Workers cannot survive on the current minimum wage. The true scandal is not the ₦1.5m official salary, but the secret allowances. Publish them, and Nigerians will see where the money goes,” a labour union member said.
Nigeria’s inflation rate eased to 21.88% in July 2025, down from 22.22% in June, according to the National Bureau of Statistics. Yet food inflation stayed high at 22.74% year-on-year — a reminder of the daily battles of ordinary citizens.
For many, the sight of politicians calling their official salaries “a joke” is salt in an injury. Labour accuses leaders of living in luxury while millions sink deeper into desperate poverty.
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