The Nigerian Senate has kicked off legislative steps to amend the 1999 Constitution to change the revenue allocation formula among the federal, state, and local governments.
The Constitution of the Federal Republic of Nigeria, 1999 (Alteration) Bill, 2026 was read for the first time during plenary on Tuesday, February 3, 2026.
The bill, sponsored by Senator Sunday Karimi (APC, Kogi West), seeks to boost the Federal Government’s share of revenue from the Federation Account, currently set at 52.68 per cent, while states receive 26.72 per cent and local councils 20.60 per cent.
Proponents argue the current formula is outdated and insufficient given the federal government’s rising spending on national security, infrastructure, and other nationwide responsibilities.
They say increasing the federal share would enhance the centre’s capacity to deliver on these obligations.
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Critics warn the change could strain states and local councils, many of which already face revenue shortfalls in funding basic services and development projects.
As a constitutional amendment, the bill must pass second and third readings in both chambers of the National Assembly and receive ratification from at least 24 of the 36 state Houses of Assembly before it can take effect.
The initiative is part of a broader constitutional review process aimed at addressing Nigeria’s evolving economic and governor nce challenges.