Senate Moves To Increase Federal Government Share In Revenue Formula

Senate Moves To Increase Federal Government Share In Revenue Formula

  The Senate on Tuesday began moves to amend key provisions of the 1999 Constitution to allow an upward review of the federal government’s share in the country’s revenue-sharing formula. The proposed amendment seeks to increase allocations to the Federal Government from the Federation Account, altering the current structure that distributes 52.68 percent to the

 

The Senate on Tuesday began moves to amend key provisions of the 1999 Constitution to allow an upward review of the federal government’s share in the country’s revenue-sharing formula.

The proposed amendment seeks to increase allocations to the Federal Government from the Federation Account, altering the current structure that distributes 52.68 percent to the centre, 26.72 percent to the 36 states, and 20.60 percent to the 774 local government areas.

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Lawmakers said the review is aimed at reflecting current fiscal realities and addressing the growing financial obligations of the federal government, particularly in areas such as security, infrastructure, and national development.

If approved, the constitutional amendment would formally adjust the existing revenue framework and could significantly reshape how public funds are shared across the three tiers of government.

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