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HomeEconomySenate Approves 15% Funding Model for Regional Development Commissions

Senate Approves 15% Funding Model for Regional Development Commissions

In a decisive move on Thursday, the Nigerian Senate approved a proposal for 15 per cent of statutory allocations from member states to fund newly established zonal development commissions, drawing from the Consolidated Revenue Fund. This approval came after significant debate and the eventual adoption of recommendations by the Senate Committee on Special Duties.

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The contentious provision sparked fierce discussion, particularly during the clause-by-clause consideration of the South-South Development Commission Establishment Bill 2024, which sets a precedent for funding other regional bodies. Central to the debate was the proposed 15 per cent funding model, with lawmakers such as Yahaya Abdullahi (PDP, Kebbi North), Wasiu Eshinlokun (APC, Lagos East), and Seriake Dickson (PDP, Bayelsa West) expressing concerns that the allocation method could provoke legal disputes from states resistant to reductions in their allocations.

“Mr. President, distinguished colleagues,” Abdullahi argued, “the 15 per cent of statutory allocations of member states for funding zonal development commissions would likely face litigation from some state governments.”

Deputy Senate President Barau Jibrin quickly clarified that the proposed funding structure does not involve direct deductions from state funds. “This is not about deductions from states’ funds,” Jibrin explained, noting that 15 per cent of each state’s allocation would be calculated by the Federal Government and transferred from the Consolidated Revenue Fund to finance the commissions.

Senate President Godswill Akpabio defended the provision, asserting that it aligns with Section 162(4) of the 1999 Constitution, which allows the National Assembly to appropriate funds from the Consolidated Revenue Fund. “Fifteen per cent has been recommended by the Senate for these commissions. Anyone may challenge this in court if they wish,” Akpabio affirmed before calling a voice vote, which passed with a majority in favour.

Following the bill’s approval, Akpabio commended his colleagues for their role in shaping the zonal development commissions, emphasising that these bodies will form a critical foundation for the Ministry of Regional Development. Key bills passed include the South-South Development Commission Establishment Bill 2024 and amendments to both the North West and South-East Development Commission Acts, setting the stage for a transformative chapter in Nigeria’s regional development.