Senate Moves to Increase Government Revenue Share

The Senate has begun moves to amend the 1999 Constitution to increase the Nigerian government’s share in the country’s revenue-sharing formula.

The proposal is contained in a bill sponsored by Sunday Karimi, the senator representing Kogi West, which passed first reading during plenary on Tuesday.

Under the current arrangement, the Nigerian government receives 52.68 per cent of national revenue, while the 36 states get 26.72 per cent and the 774 local government areas share 20.60 per cent.

Despite having the largest allocation, lawmakers said the Nigerian government needs additional revenue to cope with expanding national responsibilities.

Speaking to journalists after the session, Karimi stated that the bill seeks to address what he described as inadequate federal funding.

According to him, the existing revenue-sharing formula is outdated and unsustainable, as it places excessive financial pressure on the Nigerian government in the face of worsening infrastructure and rising insecurity.

Karimi said a review of the formula was necessary to enable the Nigerian government to discharge its duties effectively.

The senator also pointed to the high cost of tackling banditry, terrorism, and other security challenges as a major strain on federal resources.

He further stated that the burden of constructing and maintaining federal roads nationwide, alongside heavy internal security responsibilities, has become overwhelming under the current revenue formula, stressing that an upward review of the Nigerian government’s share is required.

“Responsibilities borne by the government, particularly the construction and maintenance of federal roads across the country, have become overwhelming under the existing revenue formula, aside from the enormous responsibilities on internal security.

“So what is needed now is an adjustment in the revenue allocation formula to increase the government allocation.”

Karimi added that increased revenue would also help strengthen the capacity of the military to combat terrorism and other security threats.