The Nigerian Senate is seeking to amend the 1999 Constitution to increase the Federal Government’s share of revenue from the Federation Account (FAAC). Lawmakers argue that the current revenue allocation formula no longer reflects the scale of responsibilities held by the central government.
Under the existing system, the Federal Government receives 52.68% of federation revenue, the 36 states share 26.72%, while the 774 local government councils receive 20.60%. Despite already taking the largest portion, the Senate, through a bill sponsored by Senator Sunday Karimi (APC, Kogi West), is proposing an upward review of the federal government’s share.
The bill has passed its first reading at plenary and aims to amend constitutional provisions regulating revenue allocation among the three tiers of government.
Senator Karimi explained the rationale behind the proposal:
“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The current revenue sharing formula is outdated and unsustainable because it places excessive financial pressure on the federal government amid rising infrastructure decay and insecurity nationwide.”
If passed, the amendment would give the Federal Government more resources to manage national responsibilities and tackle pressing issues such as insecurity, infrastructure, and other critical obligations.
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