Senate approves 15% funding for new regional development commissions

The Senate, on Thursday, approved a funding structure for the newly established zonal development commissions, allocating 15 percent from the Consolidated Revenue Fund.

This decision followed the review and endorsement of the Senate Committee on Special Duties’ report regarding the bills that initiated these commissions.

The debate on funding sources had initially caused a rift among lawmakers during the detailed examination of the South-South Development Commission Establishment Bill 2024, which serves as the foundational model for the other zonal commissions. Central to the discussion was the committee’s recommendation to earmark 15 percent of statutory allocations from member states to support these commissions.

Several senators, including Yahaya Abdullahi (PDP, Kebbi North), Wasiu Eshinlokun (APC, Lagos East), and Seriake Dickson (PDP, Bayelsa West), raised concerns about the implications of this funding model. Abdullahi cautioned that such a provision might prompt legal challenges from state governments, as it would be unlikely for states to agree to reductions in their statutory allocations.

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“Mr. President, distinguished colleagues, the 15 percent of statutory allocations of member states recommended for funding their zonal development commissions would be litigated against by some state governments,” Abdullahi stated.

In response, Deputy Senate President Barau Jibrin clarified that the 15 percent allocation would not be a direct deduction from state funds. He explained, “Mr. President, distinguished colleagues, the 15 percent of statutory allocation of member states, recommended for funding of zonal development commissions by the Federal Government, is not about deduction at all.”

Barau elaborated that the Federal Government would calculate the 15 percent from each state’s monthly statutory allocation to fund the commissions through the Consolidated Revenue Fund.

Despite this clarification, several senators remained skeptical and expressed a desire to further discuss the issue. However, Senate President Godswill Akpabio asserted the constitutionality of the provision, citing Section 162(4) of the 1999 Constitution, which empowers the National Assembly to appropriate funds from either the Consolidated Revenue Fund or the Federation Account.

“We don’t need to debate whether 15 percent of statutory allocations from member states in a commission would be deducted,” Akpabio stated. “Anyone who wishes to challenge that in court is free to do so.”

Following a voice vote that favored the provision, Akpabio thanked the senators for their contributions in establishing the zonal development commissions, which will underpin the newly formed Ministry of Regional Development. The bills passed included the South-South Development Commission Establishment Bill 2024, along with amendments to the North West and South-East Development Commission Acts. The South West and North Central Development Commission Establishment Bills had already been approved.

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