The Senate has initiated a legislative process to alter relevant provisions of the 1999 Constitution, to allow for more revenue allocation to the federal government through upward review of the current sharing formula.
It’s pertinent to note that in the current
revenue allocation formula, the federal government takes the lion share of 52.68% while 26.72% is given to the 36 States of the federation and 20.60% goes to the 774 local government Councils.
However, notwithstanding the disparity amongst the three tiers of government in the current allocation formula, the apex legislative Assembly through a bill sponsored by Senator Sunday Karimi (Kogi West), wants more revenue for the federal government.
While briefing journalists in Abuja on the intent of the bill, which scaled first reading during plenary, Senator Karimi explained that the proposed legislation basically seeks to rescue the federal government from grossly inadequate revenue to enormous responsibilities to the citizens.
“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“The current revenue sharing formula is outdated and unsustainable because it places excessive financial pressure on the federal government amid rising infrastructure decay and insecurity nationwide.
“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 .
He explained further that federal roads nationwide had deteriorated while huge resources were committed to combating banditry, terrorism, and other security threats across the country.
“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 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 stressed .
Karimi pointed out that inadequate funding also affected the military’s fight against terrorism, saying that this problem would be solved through increased revenue to the federal government.
