Shocking Twist: Senate Moves to Give Federal Government More Money, Accuses States of Waste

ABUJA — Just when state governors and local councils are aggressively lobbying for a larger slice of the national cake to fund the new minimum wage, the Nigerian Senate has delivered a stunning counter-punch: Abuja needs more money, not less.

On Tuesday, the Senate officially initiated legislative steps to amend the 1999 Constitution to facilitate an upward review of the revenue allocation formula in favor of the Federal Government.

The move comes as a massive shock to proponents of fiscal federalism, who have spent the last year arguing that the central government already takes too much.

The “Overburdened” Argument

Currently, the Federal Government takes the lion’s share of 52.68 percent of all federally collected revenue, leaving the 36 states with 26.72 percent and the 774 Local Government Areas with 20.60 percent.

However, a new bill sponsored by Senator Sunday Karimi (APC, Kogi West), which passed its first reading on Tuesday, argues that this 52.68 percent is no longer enough to run the country.

Defending the bill—titled ‘Constitution of the Federal Republic of Nigeria, 1999 (Alteration) Bill, 2026’—Karimi told journalists that the Federal Government is drowning under “mounting financial obligations.”

“The current sharing formula is outdated and unsustainable,” Karimi argued. “When you consider the security challenges—banditry in Kwara, Kogi, Katsina, Sokoto, Borno—the burden ultimately falls on the Federal Government. The maintenance of all Trunk A roads, from the Lagos-Calabar coastal highway to the Lagos-Sokoto superhighway, is entirely on Abuja. We need a slight increase to meet these responsibilities.”

Senate Takes a Swipe at Governors

In defending the push for more federal cash, the Senate took a direct swipe at state governors, accusing them of financial recklessness.

Senator Karimi noted that under the Tinubu administration, states have received unprecedented FAAC allocations (evidenced by the N1.97 trillion shared this week), yet the impact is not felt at the grassroots.

“I am not fighting any state government, but we must ask: what are they doing with the money?” Karimi questioned. “There has been unprecedented funding flowing to state governments under this administration. Some are performing excellently, but many have absolutely nothing to show for it.”

Collision Course with RMAFC and States

This Senate proposal sets the stage for a massive political showdown in 2026.

• The States’ Reality: Governors are currently struggling to clear the arrears of the new minimum wage, with the Nigeria Governors’ Forum (NGF) repeatedly calling for the Federal Government’s share to be slashed to 45 percent.
• The Regulator’s Plan: Just last year, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) assured Nigerians that it was designing a new formula that would empower sub-national governments, not the center.

What Happens Next?

To pass, this alteration will require the approval of at least 24 of the 36 State Houses of Assembly. Given that state lawmakers are effectively controlled by the same governors the Senate is accusing of “waste,” political analysts predict this bill will face fierce resistance as it moves to its second reading.