SENATE PROPOSES REVIEW OF REVENUE-SHARING FORMULA TO BOOST FEDERAL GOVERNMENT SHARE

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By Aishat Momoh. O.

The Nigerian Senate has proposed a review of the current revenue-sharing formula among the three tiers of government, seeking to increase the allocation to the Federal Government.

The proposal is contained in a constitutional amendment bill titled “Constitution of the Federal Republic of Nigeria, 1999 (Alteration) Bill, 2026”, sponsored by Senator Karimi Sunday, representing Kogi-West. The bill passed its first reading during plenary on Tuesday.

Currently, the revenue-sharing formula allocates 52.68 percent to the Federal Government, 26.72 percent to the states, and 20.60 percent to local governments. The bill comes amid ongoing debates and calls for a new formula that would favour states and local governments.

Defending the legislation at a media briefing on Tuesday, Senator Karimi argued that the Federal Government faces mounting responsibilities, including the rehabilitation of dilapidated Trunk A roads and rising security costs, and that the current funds are no longer sufficient to meet these obligations.

He also alleged that some states have shown little to no development despite the funds received from the Federation Account, adding urgency to the proposed constitutional review.

The bill will proceed to a second reading, after which it will undergo further legislative scrutiny.