Senate Approves 15% Federal Allocation to Fund Regional Development Commissions

The Nigerian Senate on Thursday approved a bill mandating that 15% of revenue from the Consolidated Revenue Fund be allocated to support the country’s new regional development commissions. This decision followed the Senate Committee on Special Duties’ recommendations on funding mechanisms for these newly established zonal bodies, set to drive regional development.

The approval was reached after a debate among senators on the bill’s financial structure, especially regarding the sourcing of funds from states. The conversation unfolded during the review of the South-South Development Commission Establishment Bill 2024, which serves as a model for other regional commissions.

At the center of the debate was a recommendation for a 15% allocation from member states’ statutory funds to support these commissions. Some senators, including Yahaya Abdullahi (PDP, Kebbi North), Wasiu Eshinlokun (APC, Lagos East), and Seriake Dickson (PDP, Bayelsa West), raised concerns about potential legal issues, with Abdullahi noting that state governments might challenge the policy in court.

However, Senate Deputy President Barau Jibrin clarified that the allocation would not involve direct deductions from states’ funds. “The recommended 15% of statutory allocation is not a deduction but a calculated fund removed from the Consolidated Revenue Fund by the Federal Government for these development commissions,” Jibrin explained.

Senate President Godswill Akpabio further assured members of the policy’s constitutional basis, citing Section 162(4) of the 1999 Constitution, which empowers the National Assembly to allocate funds from federal accounts. “Anyone who wishes to challenge this in court is free to do so,” Akpabio added.

Following Akpabio’s clarification, a voice vote confirmed the provision’s approval, with a majority in favor. Akpabio commended his colleagues for their commitment to the development agenda, noting that these commissions would serve as pillars for the newly established Ministry of Regional Development.

The bills approved include the South-South Development Commission Establishment Bill 2024, North West Development Commission Act (Amendment) Bill 2024, and South-East Development Commission Act (Amendment) Bill 2024, with prior approval granted to the South West and North Central Development Commission bills.