The Senate has initiated steps to amend the 1999 Constitution to increase the Federal Government’s share of revenue from the Federation Account, saying the current formula no longer matches the scale of obligations handled by the centre.
The move comes amid renewed national conversations on fiscal federalism and concerns raised by labour groups, civil society organisations and opposition voices that higher allocations to states have not significantly improved citizens’ living conditions.
Under the existing arrangement, the Federal Government receives 52.68 per cent of federation revenue, states take 26.72 per cent, while local government councils share 20.60 per cent.
Despite already holding the largest share, lawmakers are proposing a further increase through a bill sponsored by Senator Sunday Karimi (APC, Kogi West). The bill passed first reading on Tuesday and seeks to amend constitutional provisions governing revenue distribution among the three tiers of government.
Karimi argued that the present framework is outdated and places unsustainable pressure on the Federal Government at a time of rising infrastructure challenges and security threats.
According to him, the adjustment is necessary to enable the centre meet its statutory responsibilities, particularly in road construction, maintenance and internal security operations.
He said funding limitations have weakened the Federal Government’s capacity to maintain federal infrastructure and combat banditry and terrorism nationwide, insisting that a revised allocation formula would strengthen its response to these demands.
The senator expressed optimism that increasing the federal share would enhance national efforts to tackle insecurity and address long-standing infrastructure deficits.
