Senate Moves to Increase FG’s Share of Federation Revenue!

Senate Moves to Increase FG’s Share of Federation Revenue!

Reported by Mustapha Labake Omowumi | Sele Media Africa Journalist

The Nigerian Senate has initiated moves to amend the Constitution to increase the Federal Government’s share of federation revenue, a development aimed at boosting federal capacity to address national responsibilities including security and infrastructure funding.
At a plenary session on Tuesday in Abuja, lawmakers passed the first reading of a constitutional alteration bill — the Constitution of the Federal Republic of Nigeria, 1999 (Alteration) Bill, 2026 — which seeks to revise the current revenue‑sharing formula in favour of the Federal Government.
Under the existing arrangement, the Federal Government receives 52.68 % of federation revenue, while states and local governments share 26.72 % and 20.60 % respectively. The Senate noted that while the Federal Government already receives the largest share, this is no longer sufficient to meet expanding national obligations such as security challenges and infrastructure decay.
The bill was sponsored by Senator Sunday Karimi (APC‑Kogi West), who said after plenary that the proposal aims to “rescue” the Federal Government from grossly inadequate revenue amid rising costs of national governance.
Senator Karimi further explained that the existing formula is “outdated and unsustainable,” especially given the financial pressures posed by deteriorating federal roads and the cost of combating banditry, terrorism, and other internal security threats nationwide.
The constitutional amendment process will now proceed to further readings and eventual consideration by state assemblies, requiring approval by at least 24 of Nigeria’s 36 states before it can become law.
This legislative move has sparked debate among stakeholders on fiscal federalism and equitable revenue distribution among Nigeria’s three tiers of government.

CITATION:
1.The Cable https://www.thecable.ng/senate-moves-to-increase-federal-government-allocation-in-revenue-sharing-formula/

2.The Nation Newspaper https://thenationonlineng.net/senate-moves-to-increase-federal-share-of-revenue-seeks-review-of-allocation-formula/

3The Whistler Newspaper https://thewhistler.ng/senate-bill-seeks-higher-revenue-allocation-for-fg/

About The Author

Mustapha Labake Omowumi

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Mustapha Labake Omowumi is a journalist from Ibadan, Oyo State, and a graduate of the Nigeria Certificate in Education (NCE) in Economics and Mathematics. He demonstrates a strong commitment to professional journalism, with a keen interest in writing and storytelling, guided by principles of self-discipline, accuracy, and trustworthiness.

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