Senate Approves 15% State Funding for Regional Development Commissions

On Thursday, the Senate approved that 15 percent of funding for the newly established zonal development commissions by member-states will come from the Consolidated Revenue Fund.

The approval came after the Senate Committee on Special Duties reviewed and adopted their report concerning the bills that establish the commissions.

Previously, the lawmakers were at odds regarding the funding source for the newly established zonal development commissions.

The disagreement arose during the detailed review of each clause in the South-South Development Commission Establishment Bill 2024, which acts as a structural model for other zonal commissions.

At the heart of the debate was a recommendation by the Senate Committee on Special Duties that 15 percent of statutory allocations from member states be allocated to fund these commissions.

A number of lawmakers, such as Yahaya Abdullahi (PDP, Kebbi North), Wasiu Eshinlokun (APC, Lagos East), and Seriake Dickson (PDP, Bayelsa West), expressed their apprehensions regarding the proposed funding model.

Abdullahi cautioned that the provision might prompt legal disputes with state governments, as no state would willingly accept a reduction in its statutory allocation.

“Mr. President, esteemed colleagues, Abdullahi noted that some state governments would challenge the proposed allocation of 15 percent of statutory funds for member states to support their zonal development commissions in court.”

Aiming to resolve the issue, Deputy President of the Senate Barau Jibrin promptly stepped in.

He clarified that the 15 percent allocation would not lead to a direct reduction in the states’ funds.

He stated, “Mr. President and esteemed colleagues, the 15 percent statutory allocation for member states recommended by the Federal Government to fund zonal development commissions is not a matter of deduction.”

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The report from the Committee on Special Duties, which is currently under Senate review, recommends that 15 percent of a zonal development commission’s statutory allocation from member states should be calculated by the Federal Government and used to fund the commission through the Consolidated Revenue Fund.

According to the report under consideration, each state receives a monthly statutory allocation. Of this amount, 15 percent will be calculated by the Federal Government and deducted from the Consolidated Revenue Fund to support their development commission.

Despite Barau’s explanation, several senators were still not persuaded and expressed their wish to participate in the debate.

However, the Senate President, Godswill Akpabio, intervened and affirmed that the provision was constitutionally valid.

“We don’t need to argue about the deduction of 15 percent from statutory allocations by member states in a commission,” Akpabio stated, referencing Section 162(4) of the 1999 Constitution. This section empowers the National Assembly to allocate funds from either the Consolidated Revenue Fund or the Federation Account.

“The Senate, along with the National Assembly, has recommended that fifteen percent of the statutory allocation be used to fund these zonal development commissions. He further stated that anyone who wishes to challenge this decision in court is free to do so.”

Akpabio subsequently requested a voice vote, and the majority supported the provision.

In his comments after the consolidated bills were passed, Akpabio conveyed appreciation to the senators for their work in completing the zonal development commissions.

He mentioned that these commissions would serve as a foundation for the newly established Ministry of Regional Development.

The passed bills include the South-South Development Commission Establishment Bill 2024, the amendment to the North West Development Commission Act in 2024, and the revision of the South-East Development Commission Act in 2024.

The South West Development Commission Establishment Bill 2024 and the North Central Development Commission Establishment Bill 2024 had been passed earlier.