The Nigerian Senate has proposed a review of the current revenue-sharing formula among the three tiers of government, with a focus on increasing the Federal Government’s share.
The proposal is part of a constitutional amendment bill titled “Constitution of the Federal Republic of Nigeria, 1999 (Alteration) Bill, 2026”, which was sponsored by Senator Karimi Sunday, representing Kogi-West. The bill passed its first reading during plenary on Tuesday.
This new proposal comes amidst ongoing calls for a new revenue formula that would favour states and local governments. Under the current arrangement, the Federal Government receives 52.68% of the revenue, while states receive 26.72% and local governments get 20.60%.
In defending the bill, Senator Karimi explained that the Federal Government has been overburdened with responsibilities, including the rehabilitation of dilapidated Trunk A roads and the increasing cost of security. He argued that the available funds have become insufficient to meet these rising demands.
The lawmaker further alleged that some states have not demonstrated adequate accountability in the use of funds received from the Federation Account.
He suggested that these states have little to show for the financial allocations they have been receiving.
Senator Karimi’s proposal has sparked debate on the appropriate allocation of the country’s resources, with some stakeholders advocating for a more equitable distribution of funds among the tiers of government.
The bill is expected to go through further readings and discussions before any changes to the revenue-sharing formula can be implemented.
