The Senate has commenced legislative action to amend the 1999 Constitution in a bid to increase the Federal Government’s share of national revenue, arguing that the current allocation formula is no longer capable of sustaining the country’s mounting national obligations.
At present, the Federal Government receives 52.68 per cent of the nation’s revenue, while the 36 states get 26.72 per cent and the 774 local government councils receive 20.60 per cent.
The proposed amendment is contained in a bill sponsored by Sunday Karimi, which passed first reading during plenary on Tuesday.
Addressing journalists after the session, Karimi said the existing revenue sharing arrangement has become grossly inadequate for the Federal Government, especially in the face of deepening infrastructure collapse and worsening security challenges nationwide.
He maintained that the formula, which has remained largely unchanged for years, no longer reflects current realities and places disproportionate financial pressure on the Federal Government.
“The revenue allocation formula is outdated and unsustainable. It fails to provide the Federal Government with sufficient resources to meet its constitutional responsibilities,” Karimi said.
He pointed to the deplorable state of federal roads across the country, noting that the burden of construction, rehabilitation, and maintenance continues to rest squarely on the Federal Government despite dwindling funds.
Karimi also highlighted the escalating cost of internal security, stressing that massive resources are being channelled into combating banditry, terrorism, and other violent crimes threatening national stability.
According to him, persistent funding gaps have weakened the capacity of the military and other security agencies to effectively prosecute the war against terrorism.
“The Federal Government is stretched thin. The responsibility of safeguarding lives and property, maintaining critical infrastructure, and preserving national unity cannot be met under the current revenue framework,” he said.
The senator argued that increasing the Federal Government’s share of national revenue would provide the financial leverage needed to reinforce security operations, repair critical infrastructure, and stabilise governance at the centre.
The move is expected to reignite intense debate within the Senate of Nigeria, as well as among state governments and local councils, many of which have consistently opposed any reduction in their revenue shares.
If passed, the proposed constitutional amendment would represent a major shift in Nigeria’s fiscal structure and could significantly redefine the balance of financial power among the three tiers of government.
