FG to earn more as Senate mulls review of revenue allocation
The Senate on Tuesday started the process of allocating more revenue to the federal government from the Federation Account.
A bill to that effect scaled first reading on the floor of the Senate. Sponsored by Senator Sunday Karimi ( Kogi West), the bill seeks to alter the current sharing formula which gives the federal government the lion share of 52.68%, 26.72% to the 36 States and 20.60% given to the 774 local government councils .
The bill intend to alter relevant provisions of the 1999 Constitution to pave way for more revenue allocation to the federal government through upward review of the current formula. Senator Karimi told journalists after the plenary that the proposed legislation basically seeks to bail the federal government from grossly inadequate revenue to enormous responsibilities which according to him , is getting it suffocated .
” 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 “The current revenue sharing formula is outdated and unsustainable because it places excessive financial pressure on the federal government amid rising infrastructure decay and insecurity nationwide.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 .
According to him, federal roads nationwide have deteriorated badly, 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 added that inadequate funding also affected the military’s fight against terrorism which according to him, will be solved through increased revenue to the federal.
