Senate to Increase FG’s Share of Federation Revenue
Last update: February 4, 2026
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Lawmakers say current revenue allocation formula no longer matches the scale of federal responsibilities.
The Senate on Tuesday initiated moves to amend the 1999 Constitution to increase the Federal Government’s share of revenue from the Federation Account, arguing that the existing formula no longer reflects the scope of responsibilities handled by the centre.
CBI News reports that the proposal comes amid renewed debate over fiscal federalism, following criticism from labour unions, civil society groups and opposition figures who argue that increased allocations to states have not resulted in improved welfare for citizens.
Under the current revenue sharing formula, the Federal Government receives 52.68 per cent of federation revenue, while the 36 states receive 26.72 per cent and the 774 local government councils share 20.60 per cent.
Despite already receiving the largest share, the Senate is seeking an upward review through a bill sponsored by Senator Sunday Karimi of the APC representing Kogi West.
The bill passed first reading at plenary and seeks to amend relevant constitutional provisions governing revenue allocation among the three tiers of government.
Presenting the bill, Karimi said the proposed alteration aims to increase federal revenue in order to address mounting financial obligations and national responsibilities.
He argued that the current revenue sharing formula is outdated and unsustainable, placing excessive financial pressure on the Federal Government at a time of worsening infrastructure decay and rising insecurity across the country.
According to him, there is an urgent need to adjust the formula to allow the Federal Government meet its statutory responsibilities, particularly in the areas of road construction and maintenance as well as internal security.
Karimi said funding constraints have continued to hamper efforts to maintain federal roads and combat banditry and terrorism nationwide.
He expressed confidence that increasing the Federal Government’s share of federation revenue would strengthen its capacity to tackle insecurity and address infrastructure challenges across Nigeria.
