The Senate on Tuesday initiated steps to alter the 1999 Constitution to allow the Federal Government receive a bigger portion of funds from the Federation Account, citing the growing burden of national responsibilities shouldered by the centre.
The move comes against the backdrop of renewed arguments over fiscal federalism, as labour unions, civil society organisations and opposition voices have questioned why increased allocations to states have not resulted in better living conditions for Nigerians.
At present, the revenue allocation formula gives 52.68 per cent to the Federal Government, 26.72 per cent to the 36 states and 20.60 per cent to the 774 local government councils.
Although the Federal Government already takes the largest share, a new bill sponsored by Senator Sunday Karimi (APC, Kogi West) seeks to further increase its allocation. The bill has passed first reading on the Senate floor and proposes amendments to constitutional provisions governing revenue sharing among the three tiers of government.
Explaining the rationale behind the proposal, Karimi said the existing formula no longer reflects current realities.
“The proposed alteration seeks to increase federal government revenue allocation to address mounting financial obligations and national responsibilities across Nigeria.
“The current revenue sharing formula is outdated and unsustainable because it places excessive financial pressure on the federal government amid rising infrastructure decay and insecurity nationwide,” he stated.
The lawmaker argued that a modest upward review of the Federal Government’s share was necessary to enable it carry out its statutory duties effectively.
“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 said.
Karimi noted that limited funding has continued to hinder the upkeep of federal roads and efforts to tackle banditry and terrorism.
“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.
“So what is needed now is an adjustment in the revenue allocation formula to increase the federal government allocation,” he added.
He expressed optimism that increasing the Federal Government’s share would strengthen its ability to respond to security challenges and address widespread infrastructure deterioration across the country.
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