Senate moves to raise federal share of revenue formula

From Adesuwa Tsan, Abuja

The Senate on Tuesday initiated legislative steps to amend relevant provisions of the 1999 Constitution aimed at increasing the share of revenue allocated to the Federal Government under the existing revenue allocation formula.

The move, which is contained in a bill sponsored by Sunday Karimi, passed its first reading during plenary. The proposed constitutional alteration seeks an upward review of the federal government’s share, despite it currently receiving the highest portion of the distributable revenue.

Under the existing formula, the Federal Government receives 52.68 per cent, while the 36 states get 26.72 per cent and the 774 local government councils share 20.60 per cent.

Addressing journalists after the plenary, Senator Karimi said the bill was designed to address what he described as the growing mismatch between the federal government’s revenue and its expanding national responsibilities.

“The proposed alteration seeks to increase federal government revenue allocation to address mounting financial obligations and national responsibilities across Nigeria,” he said.

According to him, the present revenue-sharing arrangement has become unworkable, as it places enormous financial strain on the Federal Government.

“The current revenue sharing formula is outdated and unsustainable because it places excessive financial pressure on the federal government amid rising infrastructure decay and insecurity nationwide,” Karimi said.

He added that the federal government’s ability to meet its obligations had been severely constrained under the existing framework.

“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,” he stated.

Karimi further explained that deteriorating federal roads across the country and the rising cost of addressing security challenges had stretched federal resources beyond capacity.

“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.

He stressed that an upward review of the federal government’s allocation had become inevitable.

“So what is needed now is an adjustment in the revenue allocation formula to increase the federal government allocation,” Karimi added.

The lawmaker also noted that inadequate funding had adversely affected the military’s ongoing fight against terrorism, a challenge he said could be addressed through improved revenue inflows to the Federal Government.