Senate proposes new revenue formula in favour of FG
Senate proposes new revenue formula in favour of FG
In a surprise move on Tuesday, the Senate proposed a review of the current revenue-sharing formula among the three tiers of government to make more funds available to the Federal Government.
The proposal was contained in a constitutional amendment bill, which passed first reading during plenary in Abuja.
The bill, with the short title “Constitution of the Federal Republic of Nigeria, 1999 (Alteration) Bill, 2026”, was sponsored by Senator Karimi Sunday Steve (APC, Kogi West).
The bill comes at a time of growing clamour for a new revenue formula to make more funds available to states and local governments.
Under the existing sharing formula, the Federal Government takes the lion’s share of 52.68 per cent.
The 36 states share 26.72 per cent, while the 774 local governments share the remaining 20.60 per cent.
However, Senator Karimi, while defending his bill on Tuesday, argued that the Federal Government should instead receive a larger share, noting that the central government had become overburdened with responsibilities.
He cited the deplorable state of many ‘Trunk A’ federal roads across the country, saying repairs had failed to materialise despite years of contract awards due to insufficient funding.
He also referenced insecurity, which he said had increasingly overwhelmed the Federal Government’s financial capacity.
“There is too much burden on the Federal Government. Most roads are totally down. All roads leading to states, known as Trunk A federal roads, are down.
“Apart from roads, a lot is being spent on fighting insecurity, further burdening the Federal Government. The money available to the government is no longer enough to cater for its responsibilities,” the lawmaker said.
He added, “What this bill seeks is to adjust the revenue allocation so that the Federal Government has a slight increase in what it gets.
“We cannot continue to pretend. All is not well with Federal Government finances.”
Karimi also alleged that some states could not adequately account for the funds they receive from the Federation Account.
“So, we need to increase the revenue to the Federal Government.
“The states are getting money, but no one is asking them what they spend the money on. I am not saying all the states. Some of them are doing well and must be commended, but in most states, if you go there, there is nothing to show for the money they receive,” the senator said.
The bill now awaits second reading, during which lawmakers are expected to debate its merits and demerits before deciding whether to refer it for public hearing or drop it.
