The senate on Tuesday initiated the process to amend relevant provisions of the 1999 Constitution to increase revenue allocation to the federal government through an upward review of the existing formula.
Under the current revenue-sharing arrangement, the federal government receives 52.68 percent, while the 36 states get 26.72 percent, and the 774 LGAs share 20.60 percent.
Despite receiving the largest share, the senate said the federal government requires additional revenue to meet its expanding responsibilities.
The move is contained in a bill sponsored by Sunday Karimi, the senator representing Kogi west.
The bill passed its first reading during plenary on Tuesday.
Speaking to journalists after the session, Karimi said the proposed legislation seeks to rescue the federal government from what he described as grossly inadequate revenue.
“The proposed alteration seeks to increase federal government revenue allocation to address mounting financial obligations and national responsibilities across Nigeria,” he said.
The lawmaker said the current revenue-sharing formula is outdated and no longer sustainable.
“The current revenue-sharing formula is outdated and unsustainable because it places excessive financial pressure on the federal government amid rising infrastructure decay and insecurity nationwide,” he said.
He said an adjustment is required to enable the federal government to meet its obligations.
“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,” Karimi said.
The senator said poor funding has worsened the condition of federal infrastructure, adding that roads across the country have deteriorated significantly.
Karimi also cited the cost of combating banditry, terrorism, and other security threats as a major strain on federal resources.
“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,” he said.
“So what is needed now is an adjustment in the revenue allocation formula to increase the federal government allocation.”
He said increased revenue would also strengthen the military’s capacity to fight terrorism.
