Nigerian Senate Proposes New Revenue Formula to Boost Federal Spending

The Nigerian Senate, led by Senator Karimi Sunday representing Kogi West, has proposed a new revenue formula to enhance federal government spending. The amendment bill seeks to adjust the revenue-sharing ratios outlined in the 1999 Constitution.

Currently, the federal government receives 52.68%, states receive 26.72%, and local governments receive 20.60% of the revenue. The proposed changes come amidst calls for a more favorable revenue formula for states and local governments.

Senator Karimi emphasized that the federal government is burdened with responsibilities such as road rehabilitation and rising security costs, highlighting the inadequacy of current funding levels. The bill is set for a second reading as lawmakers argue that states receive insufficient funds from the federal account.