Senate Proposes 1% Federation Account Allocation For Police Trust Fund Overhaul

Senate advances Police Trust Fund bill to second reading, proposes one percent allocation and raises fiscal accountability concerns

The Senate on Tuesday advanced efforts to overhaul police funding by passing the Nigeria Police Trust Fund (Establishment) Bill, 2025, for second reading, proposing to raise the statutory allocation to 1 per cent of revenue accruing to the Federation Account, even as lawmakers expressed concerns over its fiscal and constitutional implications.

The bill sponsored by Senate Leader Opeyemi Bamidele seeks to repeal the 2019 Act and replace it with a more robust legal and institutional framework for funding, administering, and supporting the Nigeria Police Force.

Leading the debate, Bamidele described the proposal as a strategic national security intervention aimed at addressing chronic challenges confronting the police, including inadequate funding, obsolete equipment, poor infrastructure, and low personnel morale. 

He argued that Nigeria’s changing security environment, characterised by insurgency, banditry, kidnapping, and cybercrime, requires a modern and better-resourced policing system.

He noted that the bill introduces a diversified funding model that extends beyond government allocations to include development levies, international grants, and private sector contributions. 

It also proposes strengthened governance structures, including a multi-stakeholder board and a Project Implementation Committee to enhance transparency, accountability, and efficient project execution.

However, the proposal triggered a wave of concern among senators. 

Senator Abdul Ningi cautioned that increasing statutory deductions could significantly shrink the Federation Account, warning that cumulative allocations might reduce funds available for sharing among the three tiers of government.