Senate proposes new revenue formula to boost FG spending

The Senate has proposed a review of the current revenue-sharing formula among the three tiers of government, seeking to allocate more funds to the federal government.

The proposal is contained in a constitutional amendment bill titled: ‘Constitution of the Federal Republic of Nigeria, 1999 (Alteration) Bill, 2026’, sponsored by Senator Karimi Sunday representing Kogi-West, which passed first reading during plenary on Tuesday.

Coming amid ongoing calls for a new revenue formula to favour states and local governments, the bill argues for an increased federal share from the existing formula, under which the Federal Government receives 52.68 per cent, States 26.72 per cent, while local governments get 20.60 per cent.

Defending the bill, Senator Karimi, at a press briefing on Tuesday, said the federal government is overburdened by responsibilities such as the rehabilitation of dilapidated Trunk A roads and rising security costs, adding that available funds are no longer sufficient.

Ahead of its second reading, the lawmaker alleged that some states have little to show for funds received from the Federation Account.

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