Senate moves to review revenue allocation formula

…seeks higher share for FG

The Senate, on Tuesday, initiated legislative steps to amend relevant provisions of the 1999 Constitution to enable an upward review of the revenue allocation formula in favour of the Federal Government.

Under the existing formula, the Federal Government receives 52.68% of federally collected revenue, while the 36 States share 26.72% and the 774 Local Government Councils receive 20.60%.

However, a bill sponsored by Sunday Karimi (Kogi West) seeks to further increase the Federal Government’s share.

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Speaking to journalists after the bill passed first reading at plenary, Karimi explained that the proposal was aimed at addressing what he described as the Federal Government’s dwindling revenue in the face of expanding national responsibilities.

“The proposed alteration seeks to increase federal government revenue allocation to address mounting financial obligations and national responsibilities across Nigeria.

“The current revenue-sharing formula is outdated and unsustainable because it places excessive financial pressure on the federal government amid rising infrastructure decay and insecurity nationwide.

“There is a need for adjustment in the revenue allocation coming to the Federal Government so that we can have a slight increase in what is coming to the Federal Government for it to meet its responsibilities,” he said.

Karimi further noted that federal infrastructure, particularly roads, has suffered extensive deterioration, while the Government continues to commit significant resources to addressing security challenges.

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

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

He added that inadequate funding had also constrained the military’s efforts in combating terrorism, arguing that increased revenue allocation to the Federal Government would strengthen the fight against insecurity nationwide.

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