Senate unveils plan to boost FG funding amid escalating expenses

The Nigerian Senate has initiated steps to increase the share of funds allocated to the Federal Government from the nation’s revenue pool.

This move comes amid mounting concerns over escalating national expenditures and the growing scope of federal responsibilities

TheLeader reports that the Lawmakers initiated the process on Tuesday by presenting a bill that seeks to amend parts of the 1999 Constitution on revenue sharing.

The proposal aims to review the current allocation formula in favour of the Federal Government.

At present, the Federal Government receives 52.68 percent of national revenue. The 36 states share 26.72 percent, while the 774 local government councils receive 20.60 percent.

Despite holding the largest portion, the Senate believes the Federal Government needs more funds to cope with mounting obligations. These include security operations, infrastructure maintenance, and other nationwide duties.

The bill was sponsored by Senator Sunday Karimi, who represents Kogi West. It passed its first reading during plenary on Tuesday.

After the session, Karimi told journalists that the proposed amendment is meant to address what he described as severe funding gaps at the federal level.

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

He explained that the existing revenue formula no longer reflects current realities. According to him, the structure was designed for a different economic period and cannot sustain today’s level of spending.

“The current revenue-sharing formula is outdated and unsustainable because it places excessive financial pressure on the federal government amid rising infrastructure decay and insecurity nationwide,” he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 explained that the existing revenue formula no longer reflects current realities. According to him, the structure was designed for a different economic period and cannot sustain today’s level of spending.

“The current revenue-sharing formula is outdated and unsustainable because it places excessive financial pressure on the federal government amid rising infrastructure decay and insecurity nationwide,” he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

Karimi noted that federal roads across the country are in poor condition due to limited funds for repairs and upgrades. He added that the burden of maintaining major highways and public assets has continued to grow.

The senator also pointed to security challenges as a major reason for the proposal. He said the cost of tackling banditry, terrorism, and other threats has placed heavy pressure on national 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.”

Karimi added that higher revenue would help improve funding for the armed forces and strengthen their capacity to confront terrorism and organized crime.

However, the bill will undergo further legislative scrutiny before moving to the next stage of constitutional amendment. Any change to the revenue formula would require approval by both chambers of the National Assembly and endorsement by at least two-thirds of state assemblies.