Senate Seeks to Boost Federal Government’s Share of Federation Revenue

The Senate has begun moves to amend the 1999 Constitution to increase the Federal Government’s share of revenue from the Federation Account, citing the growing responsibilities of the centre.

The proposal comes amid debates over fiscal federalism, following criticisms that larger allocations to states have not translated into improved living conditions for citizens.

Currently, the Federal Government receives 52.68% of federation revenue, the 36 states share 26.72%, and the 774 local councils receive 20.60%. The Senate is proposing to further increase the federal share through a bill sponsored by Senator Sunday Karimi (APC, Kogi West), which has passed its first reading.

Presenting the bill, Karimi described the current revenue formula as outdated and unsustainable given rising financial pressures. He said the amendment would boost federal funds to tackle national obligations such as deteriorating infrastructure and insecurity.

Karimi noted that funding constraints have hindered the maintenance of federal roads and efforts to combat banditry and terrorism nationwide. He added that adjusting the revenue formula would strengthen the Federal Government’s ability to meet its statutory duties, especially in infrastructure development and internal security.

Benita Ibrahim