The Senate on Tuesday initiated steps to amend the 1999 Constitution with the aim of increasing the Federal Government’s share of revenue from the Federation Account, citing the growing burden of national responsibilities borne by the centre.
The move comes amid renewed national debate on fiscal federalism, following criticism from labour unions, civil society organisations and opposition figures who argue that increased allocations to states have not resulted in improved living conditions for citizens.
Currently, revenue from the Federation Account is shared with the Federal Government receiving 52.68 per cent, the 36 states taking 26.72 per cent, and the 774 local government councils sharing 20.60 per cent.
Despite already receiving the largest share, the Senate is considering an upward review of the Federal Government’s allocation through a bill sponsored by Senator Sunday Karimi (APC, Kogi West).
The bill, which scaled first reading during plenary, seeks to amend relevant sections of the Constitution that regulate revenue sharing among the three tiers of government.
“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“The current revenue sharing formula is outdated and unsustainable because it places excessive financial pressure on the federal government amid rising infrastructure decay and insecurity nationwide,” he stated.
Karimi explained that an adjustment was necessary to enable the Federal Government to effectively discharge its statutory duties.
“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.
According to the lawmaker, limited funding has continued to hamper the maintenance of federal infrastructure and efforts to combat insecurity.
“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 from the enormous responsibilities on internal security.
“So what is needed now is an adjustment in the revenue allocation formula to increase the federal government allocation,” he added.
Karimi expressed optimism that increasing the Federal Government’s share of revenue would enhance its ability to address challenges related to insecurity and deteriorating infrastructure nationwide.
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