Senate Proposes New Revenue Formula To Boost FG Spending
The proposal comes amid ongoing calls for a new revenue formula to favour states and local governments.
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 percent, States 26.72 percent while local governments get 20.60 percent.
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Defending the bill, Senator Karimi in a media conference on Tuesday, stated that 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.
