LunagisthubSenate Proposes Bill to Increase FG’s Share of Federation Revenue
The Nigerian Senate has taken a significant step towards amending the 1999 Constitution to increase the Federal Government’s share of revenue from the Federation Account. The proposed bill, sponsored by Senator Sunday Karimi (APC, Kogi West), seeks to address the mounting financial obligations and national responsibilities borne by the centre
Under the current revenue sharing formula, the Federal Government receives 52.68% of federation revenue, while the 36 states get 26.72%, and the 774 local government councils share 20.60%. However, the Senate believes that this formula is outdated and unsustainable, placing excessive financial pressure on the Federal Government .
The proposed bill argues that the current formula has not translated into improved welfare for citizens, despite rising allocations to states. Senator Karimi emphasized that the Federal Government’s responsibilities, particularly in maintaining federal roads and fighting insecurity, have become overwhelming under the existing revenue formula .
If passed, the bill is expected to improve the country’s capacity to address insecurity and infrastructure decay. A higher allocation to the Federal Government would enable it to meet its statutory responsibilities and deliver essential services to citizens .
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