The Senate, on Tuesday, set machinery in motion to alter relevant provisions of the 1999 Constitution (as amended) to pave the way for increased revenue allocation to the Federal Government through an upward review of the current revenue-sharing formula.
Under the existing formula, the Federal Government receives 52.68 per cent, while the 36 States get 26.72 per cent and the 774 local government councils receive 20.60 per cent.
However, the Senate, through a bill sponsored by Senator Sunday Karimi (Kogi West), is seeking a further increase in the Federal Government’s share.
Explaining the intent of the bill, which scaled first reading at plenary, Senator Karimi told journalists that the proposed legislation was aimed at rescuing the Federal Government from what he described as grossly inadequate revenue in the face of enormous national responsibilities.
“The proposed alteration seeks to increase the Federal Government’s revenue allocation to address mounting financial obligations and national responsibilities across Nigeria,” he said.
According to him, the current revenue-sharing formula is outdated and unsustainable, as it places excessive financial pressure on the Federal Government amid worsening infrastructure decay and rising insecurity nationwide.
“There is a need for an adjustment in the revenue allocation accruing to the Federal Government so that it can have a slight increase to meet its responsibilities,” Karimi said.
He further explained that federal roads across the country have deteriorated significantly, while huge resources were being committed to tackling banditry, terrorism and other security challenges.
“The responsibilities borne by the Federal Government, particularly the construction and maintenance of federal roads nationwide, have become overwhelming under the existing revenue formula, in addition to the enormous burden of internal security,” he said.
Senator Karimi stressed that an upward review of the revenue allocation formula would better position the Federal Government to address these challenges.
He added that inadequate funding has also affected the military’s fight against terrorism, noting that improved revenue allocation to the Federal Government would enhance national security efforts.
