The Senate on Tuesday began the process of amending the 1999 Constitution to increase the Federal Government’s share of revenue from the Federation Account, citing growing national responsibilities and rising financial pressures on the centre.
The move comes amid renewed debates over fiscal federalism, following criticism from labour unions, civil society organisations and opposition figures who argue that increased allocations to states have not resulted in improved living standards for citizens.
Under the current revenue allocation formula, the Federal Government receives 52.68 per cent of federation revenue, the 36 states share 26.72 per cent, while the 774 local government councils receive 20.60 per cent.
Despite already receiving the largest share, the Senate is pushing for an upward review of the Federal Government’s allocation through a bill sponsored by Senator Sunday Karimi (APC, Kogi West). The bill, which has scaled first reading at plenary, seeks to amend relevant constitutional provisions governing revenue sharing among the three tiers of government.
Explaining the rationale behind the proposal, Karimi said the existing revenue formula is outdated and no longer sustainable, given the expanding responsibilities of the Federal Government.
“The proposed alteration seeks to increase federal government revenue allocation to address mounting financial obligations and national responsibilities across Nigeria,” he said. “The current revenue sharing formula places excessive financial pressure on the Federal Government amid rising infrastructure decay and worsening insecurity.”
Karimi noted that funding constraints have continued to hamper the maintenance of federal roads and the fight against banditry and terrorism across the country.
“Responsibilities borne by the Federal Government, particularly the construction and maintenance of federal roads nationwide, have become overwhelming under the existing formula, in addition to the enormous demands of internal security,” he added.
He expressed confidence that increasing the Federal Government’s share of federation revenue would strengthen the country’s capacity to tackle insecurity and address critical infrastructure challenges.
