Senate Moves to Increase Federal Government’s Share of National Revenue

The Senate has begun moves to amend the 1999 Constitution to increase the Federal Government’s share of Nigeria’s revenue allocation, citing rising national responsibilities and inadequate funding under the current formula.

At plenary on Tuesday, a bill sponsored by Senator Sunday Karimi (Kogi West) passed first reading, proposing a review of the existing sharing arrangement in which the Federal Government receives 52.68 per cent, states 26.72 per cent and local governments 20.60 per cent of federally collected revenue as Lawmakers argued that the current formula is outdated and unsustainable, noting that growing demands such as deteriorating federal roads, mounting infrastructure needs and escalating security challenges have placed excessive financial pressure on the centre. The Senate said an upward review would enable the Federal Government to better meet obligations in road construction and maintenance, strengthen the fight against terrorism and banditry, and improve national security capacity.

Written by Adeyemi Adewale