Senate Seeks More Revenue For Federal Government, Moves To Alter Allocation Formula

Senate Seeks More Revenue For Federal Government, Moves To Alter Allocation Formula

The Senate, on Tuesday, set machinery in motion to alter relevant provisions of the 1999 Constitution (as amended) to pave the way for increased revenue allocation to the Federal Government through an upward review of the current revenue-sharing formula. Under the existing formula, the Federal Government receives 52.68 per cent, while the 36 States get 26.72 per cent and the 774 local government councils receive 20.60 per cent. However, the Sena…

Senate Bill Seeks Higher Revenue Allocation For FG

A bill seeking an upward review of the federal government’s share in the existing revenue allocation formula, passed its first reading at the Senate on Tuesday. The existing formula allocates 52.68 percent of revenue to the federal government, 26.72 percent to state governments, and 20.60 percent to local governments. Additionally, 13 percent of oil-producing revenue is allocated to derivation, and one percent each is reserved for the Federal Ca…