According to *The Guardian*, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has reaffirmed its commitment to boosting revenue distribution directly to Local Government Councils. The fiscal body stated that strengthening financial autonomy at the grassroots level is essential for rural development, local infrastructure, and grassroots security funding.
Figures cited by *Leadership* demonstrate that recent judicial rulings granting direct fiscal disbursements to local councils have created a need to revamp formula-based tax allocations. RMAFC officials disclosed that ongoing policy reviews aim to streamline tax collection mechanisms while preventing double taxation between state and municipal authorities.
Reporting by *Premium Times* highlights that civil society groups and local government chairpersons welcomed the initiative, asserting that fiscal devolution will spur economic growth outside state capitals. However, governance experts emphasized that robust auditing frameworks must accompany increased funding to ensure accountability in local revenue management.
Two credible sources validating this development:
* ***The Guardian:*** “RMAFC pledges more funding to strengthen LG autonomy”.
* ***Leadership:*** “RMAFC moves to adjust revenue sharing formula for grassroots empowerment”.
Echotitbits take:
Enhancing local government financial independence marks a structural shift in Nigeria’s fiscal federalism. If executed effectively, direct allocations could stimulate rural micro-economies and fund essential social services. Moving forward, the focus will shift to local financial oversight and administrative efficiency to prevent systemic diversion of public funds.
Source: The Sun Nigeria – https://thesun.ng/lg-autonomy-rmafc-to-increase-funding-for-grassroots-development/, September 2, 2026
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