The Nigerian Senate has approved a 15% allocation from the Consolidated Revenue Fund to finance the newly established zonal development commissions, amidst a divided opinion on the funding model.
On Thursday, the Nigerian Senate approved a 15% allocation from the Consolidated Revenue Fund to fund the newly created zonal development commissions established by member states.
This decision came after the Senate Committee on Special Duties presented its report on the relevant bills.
During the discussions, a division emerged among lawmakers regarding the source of funding for these commissions, particularly while considering the South-South Development Commission Establishment Bill 2024, which serves as the structural template for the other zonal commissions.
Key lawmakers, including Yahaya Abdullahi (PDP, Kebbi North) and Seriake Dickson (PDP, Bayelsa West), expressed concerns about the potential for legal disputes arising from the proposed funding model, which recommended that 15% of statutory allocations from member states be directed towards these commissions.
Abdullahi cautioned that such a provision could provoke lawsuits from state governments resistant to reductions in their statutory allocations.
In response to these concerns, Deputy Senate President Barau Jibrin clarified that the funding model would not involve direct deductions from state allocations.
He explained that the 15% would be calculated by the Federal Government from the Consolidated Revenue Fund, rather than being taken directly from the states’ funds.
“Mr. President, distinguished colleagues, the 15% of statutory allocation of member states… will be calculated by the Federal Government and removed from the Consolidated Revenue Fund for funding of their development commission,” he stated.
Despite Barau’s assurances, several senators remained skeptical and wished to contribute further to the debate. Senate President Godswill Akpabio intervened, asserting the constitutional validity of the funding provision.
He cited 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.
Following Akpabio’s statement, a voice vote was conducted, resulting in majority support for the funding model.
In his closing remarks, Akpabio thanked the senators for their efforts in finalising the zonal development commissions and emphasised the foundational role these commissions would play for the newly established Ministry of Regional Development.
The bills that passed included the South-South Development Commission Establishment Bill 2024, the North West Development Commission Act (Amendment) Bill 2024, and the South-East Development Commission Act (Amendment) Bill 2024.
Earlier, the South West Development Commission Establishment Bill 2024 and North Central Development Commission Establishment Bill 2024 had already been approved.