SENATE MOVES TO INCREASE FG’S REVENUE SHARE, PROPOSES REVIEW OF ALLOCATION FORMULA

The Senate on Tuesday began the process of amending relevant provisions of the 1999 Constitution to enable an upward review of the revenue allocation formula in favour of the Federal Government.

Under the current arrangement, the Federal Government receives 52.68 per cent of federally collected revenue, while the 36 states share 26.72 per cent and the 774 local government councils receive 20.60 per cent.

However, a bill sponsored by Senator Sunday Karimi (Kogi West) seeks to increase the Federal Government’s share, citing insufficient revenue to meet expanding national responsibilities.

Addressing journalists after the bill passed first reading during plenary, Karimi said the proposed constitutional amendment was aimed at easing the financial pressure on the Federal Government.

He described the existing revenue sharing formula as outdated and unsustainable, arguing that it places excessive strain on the Federal Government at a time of widespread infrastructure decay and escalating insecurity.

“The proposed amendment seeks to enhance the revenue accruing to the Federal Government to enable it meet growing financial obligations and national responsibilities,” Karimi said.

He noted that federal roads across the country have suffered severe deterioration, while substantial resources are being committed to addressing banditry, terrorism and other security threats.

According to him, the responsibilities of the Federal Government particularly in the construction and maintenance of federal highways and the management of internal security have become overwhelming under the current revenue formula.

Karimi added that inadequate funding has also constrained the military’s counter-terrorism operations, stressing that a review of the allocation formula would strengthen national security and improve service delivery.