The Senate has introduced a legislative proposal to modify the existing revenue-sharing formula among the federal, state, and local government tiers, with the objective of allocating a larger portion of funds to the central government. This initiative is detailed in a bill for the alteration of the Constitution of the Federal Republic of Nigeria, 1999, which successfully completed its initial reading during a plenary session on Tuesday. The bill, identified as the ‘Constitution of the Federal Republic of Nigeria, 1999 (Alteration) Bill, 2026’, was put forward by Senator Karimi Sunday, who represents Kogi-West senatorial district.
This development comes at a time when there are widespread calls for a revised revenue allocation system that would benefit states and local governments more significantly. However, the proposed bill advocates for an increase in the federal government's allocation from the present distribution. Currently, the Federal Government receives 52.68 per cent of the divisible pool, while states are allocated 26.72 per cent, and local governments receive 20.60 per cent.
During a press conference held on Tuesday, Senator Karimi provided justifications for the bill, stating that the federal government is facing immense pressure due to extensive responsibilities. He highlighted the burden of rehabilitating deteriorating federal trunk roads (Trunk A roads) and the escalating costs associated with national security operations. According to him, the current revenue available is insufficient to adequately meet these demands.
As the bill prepares for its second reading, the senator expressed concerns that some state governments have not demonstrated sufficient accountability for the funds they have received from the Federation Account, suggesting a lack of tangible development projects in certain areas.
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