Nigerian Senate Moves to Review Revenue Allocation Formula, Seeks Increased Share for Federal Government

The Nigerian Senate has initiated processes to amend relevant provisions of the 1999 Constitution to enable an upward review of the current revenue allocation formula in favour of the Federal Government.
Under the existing formula, the Federal Government receives 52.68 per cent of the total revenue, while the 36 states get 26.

72 per cent and the 774 local government councils share 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 allocation.
Speaking to journalists after the bill scaled first reading during plenary, Senator Karimi explained that the proposed legislation is aimed at addressing what he described as the gross inadequacy of revenue available to the Federal Government in relation to its enormous responsibilities, which he said has left it financially constrained.
According to him, the proposed constitutional alteration seeks to boost the Federal Government’s revenue allocation in order to meet mounting financial obligations and national responsibilities across the country.
He noted that the current revenue sharing formula has become outdated and unsustainable, arguing that it places excessive financial pressure on the Federal Government at a time of widespread infrastructure decay and rising insecurity nationwide.
“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 accrues to it, to enable the government meet its responsibilities,” he said.
Senator Karimi further explained that federal roads across the country have deteriorated significantly, while substantial resources are being deployed to combat 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 stated.
He stressed that an adjustment of the revenue allocation formula is necessary to increase the Federal Government’s share, adding that inadequate funding has also affected the military’s fight against terrorism, a challenge he said could be addressed through increased revenue to the Federal Government.