Nigerian Senate has kicked off efforts to amend the 1999 Constitution in a bid to increase the Federal Government’s share of revenue derived from the Federation Account.
Gatekeepers News reports that the upper legislative house said the current formula no longer reflects the growing financial demands on the centre.
The proposed amendment was introduced through a bill sponsored by Senator Sunday Karimi of Kogi West, which passed its first reading at Tuesday’s plenary in Abuja.
Under the existing revenue-sharing arrangement, the Federal Government receives 52.68 percent of federation revenue, while the 36 states get 26.72 percent and the 774 local government councils share 20.60 percent, a distribution that dates back many years and has not been updated to reflect recent socio-economic changes.
Speaking to journalists after presenting the bill, Karimi said the legislation was meant to relieve the Federal Government of grossly inadequate revenue in the face of expanding national responsibilities, arguing that the existing formula has become outdated and unsustainable.
He noted that the federal government’s role in maintaining infrastructure such as federal roads and financing internal security operations against banditry, terrorism and other threats has placed enormous pressure on its finances, with funds no longer sufficient to meet these obligations.
Karimi stressed that without a review, the Federal Government would continue to struggle to fund essential services effectively, including improving national infrastructure and strengthening the military’s capacity to address security challenges.
The bill now awaits further consideration, including a second reading, and if it progresses, it will require approval by a significant number of state assemblies due to the constitutional nature of the change.
