Senator Sunday Karimi from Kogi West is leading the charge, having successfully pushed the proposed legislation through its first parliamentary reading this week. The bill comes as Nigeria faces mounting challenges - from crumbling infrastructure to persistent security threats - that lawmakers argue require greater federal funding to address effectively.
Under the current arrangement established by the 1999 Constitution, Abuja receives slightly over half of all shared revenue (52.68%), while states divide 26.72% among themselves and local governments collectively get 20.60%. Karimi contends this decades-old formula fails to account for today's economic realities and the federal government's ballooning obligations.
"The roads connecting our states are in disgraceful condition," the senator told reporters after the parliamentary session. "Our security forces need more equipment and personnel to combat the bandits and terrorists threatening communities across the nation. These aren't optional expenses - they're fundamental responsibilities that current funding levels can't properly support."
Karimi's proposal has already sparked concerns among state governors and local government chairpersons who rely on their allocations to pay salaries and fund development projects. Many subnational governments have struggled with cash flow problems in recent years, particularly after the removal of fuel subsidies increased their operational costs.
Political analysts anticipate heated debates in the coming months as the bill moves through the legislative process. The amendment would require approval from two-thirds of state legislatures to take effect, setting the stage for complex negotiations between federal and regional leaders.
This potential overhaul comes amid broader discussions about Nigeria's federal structure and whether the current system concentrates too much power and resources at the center. Some critics argue that increasing the federal share would weaken the principle of fiscal federalism, while supporters maintain it's necessary to address national priorities.
The Senate's action marks the beginning of what could become one of the most significant revisions to Nigeria's financial governance since the transition to democracy. As the proposal advances, it will likely ignite fresh debates about resource control, intergovernmental relations, and how best to balance national needs with regional autonomy in Africa's largest economy.
