The Senate has proposed a review of Nigeria’s current revenue-sharing formula among the three tiers of government, seeking a larger allocation for 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 Sunday Karimi (Kogi West). The bill scaled first reading during plenary on Tuesday.
The move comes amid sustained calls by state governments and local councils for a revised revenue formula in their favour. However, the proposed amendment argues that the Federal Government’s current share under the existing formula — 52.68 percent for the Federal Government, 26.72 percent for states, and 20.60 percent for local governments — is no longer adequate to meet expanding national responsibilities.
Defending the bill at a media briefing on Tuesday, Senator Karimi said the Federal Government is increasingly overburdened by obligations such as the rehabilitation of deteriorating Trunk A roads and escalating security expenditures across the country.
According to him, the rising cost of governance, infrastructure decay and persistent security challenges have stretched federal finances beyond their current limits.
Ahead of the bill’s second reading, the lawmaker also alleged that some states have little to show for the funds received from the Federation Account, insisting that a restructured revenue allocation is necessary to enable the Federal Government to discharge its duties more effectively.
