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The Association of Local Governments of Nigeria (ALGON) has commended the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) for its recommendation to review the country’s revenue allocation formula. ALGON described the move as a critical step towards enhancing local government autonomy, improving fiscal sustainability, and driving grassroots economic growth.

In a statement issued by the National President of ALGON, Hon. Engr. Bello Lawal, the association praised RMAFC’s proactive approach in fulfilling the constitutional mandate for periodic reviews of the revenue allocation formula—an exercise that has been overdue for more than 16 years.

“This recommendation marks a pivotal moment in the quest to strengthen local governments’ capacity to deliver essential services and promote sustainable development at the grassroots,” Lawal stated. “A revised revenue sharing formula will enable local councils to better fulfill their constitutional responsibilities, including healthcare, education, and infrastructure provision.”

ALGON emphasized that the current economic challenges facing Nigeria make the review both timely and necessary. The association expressed confidence that the proposed adjustments will promote equitable resource distribution and help address longstanding gaps in service delivery at the local level.

Also speaking on the development, ALGON’s Acting Director General, Barr. Mrs. Evan Enekwe, lauded RMAFC’s efforts, recalling a recent high-level delegation she led to the commission to advocate for the review. Enekwe noted that the initiative aligns with the federal government’s Renewed Hope Agenda and urged that the process be comprehensive and inclusive.

“We look forward to working closely with RMAFC to ensure that local government needs are prioritized in the review, thereby laying the foundation for stronger economic development and fiscal sustainability across Nigeria’s 774 local government areas,” Enekwe added.

ALGON reiterated its commitment to collaborating with all stakeholders to ensure the successful implementation of the revised revenue allocation formula, underscoring its potential to transform governance and development outcomes at the grassroots.