The Nigerian Senate has started the process of changing the 1999 Constitution to give the federal government a bigger share of the country’s revenue.
Right now, the revenue is shared like this: the federal government gets 52.68%, the 36 states get 26.72%, and the 774 local governments share 20.60%.
Even though the federal government already gets the largest share, the Senate says it still needs more money to handle its growing responsibilities.
The proposal comes from Senator Sunday Karimi, who represents Kogi West. The bill had its first reading during Tuesday’s Senate session.
Speaking to journalists, Senator Karimi said the law is meant to help the federal government cover its rising costs, calling the current revenue system “grossly inadequate.”
He explained that the existing formula is outdated and puts too much pressure on the federal government, especially with the country facing challenges like deteriorating infrastructure and increasing insecurity.
“The federal government needs a higher share of revenue so it can meet its responsibilities, such as maintaining roads and funding security operations,” Karimi said.
He added that poor funding has made the condition of federal infrastructure worse, with roads across Nigeria falling into disrepair. The cost of fighting banditry, terrorism, and other security threats has also strained federal resources.
“Managing federal roads and maintaining internal security under the current revenue system has become overwhelming. That’s why we need to adjust the formula,” Karimi said.
He concluded that increasing the federal government’s revenue would also help strengthen the military and improve efforts to fight terrorism nationwide.
