The Senate was divided on Thursday over how to fund the new Zonal Development Commissions that have been established across the country. The heated debate arose during a session where Senators were discussing a key piece of legislation—the South-South Development Commission Establishment Bill 2024. This bill is being used as a model for setting up similar commissions in other regions of the country. It was during this debate that the source of funding for these commissions became a major point of contention.
The Zonal Development Commissions are designed to oversee and promote development in the different regions of Nigeria. These commissions are being set up for the South-South, South-East, North-East, North-West, South-West, and North-Central regions. Each commission would have a board and an executive, and the question of how to fund their operations and projects has sparked serious disagreement among Senators.
The Senate Committee on Special Duties had proposed that 15% of the statutory allocations received by each state in a commission should be used to fund the development commission for that region. Statutory allocations refer to the monthly federal government disbursements to the states, based on a formula set by the National Revenue Mobilization Allocation and Fiscal Commission (NRMAFC). The idea was that 15% of this money would be redirected from each state’s allocation to fund their respective Zonal Development Commissions.
However, this proposal was not well-received by all Senators. Key figures such as Senator Yahaya Abdullahi from Kebbi State (PDP), Senator Wasiu Eshinlokun from Lagos (APC), and Senator Seriake Dickson from Bayelsa (PDP) expressed strong reservations. Senator Abdullahi, in particular, warned that the suggestion could lead to legal battles. He argued that no state would be willing to accept a reduction in its statutory allocation, fearing that it could be viewed as an unfair loss of funds. He was concerned that state governments might challenge the federal government’s decision in court, claiming that it was an infringement on their rights to the funds allocated to them.
Senator Abdullahi made it clear that the 15% deduction from state allocations could spark widespread opposition. “The 15% of statutory allocations of member states, recommended for funding of their zonal development commissions, would be litigated against by some state governments,” he stated, implying that legal action could follow.
At this point, the Deputy President of the Senate, Senator Barau Jibrin, stepped in to clarify the situation. He attempted to allay the concerns raised by Senator Abdullahi and others by explaining that the proposed 15% would not come directly from the states’ statutory allocations. Rather, it would be calculated from the Consolidated Revenue Fund, which is the central pool of funds managed by the federal government. This explanation was meant to clear up any misunderstanding that the proposal would involve a direct cut to state governments’ funds.
Senator Barau further clarified that the federal government would calculate the 15% from each state’s statutory allocation and draw the amount from the national revenue pool, not from the states’ own funds. He emphasized that there would be no direct reduction of funds from the states’ own statutory allocations, which should have been reassuring to some Senators. Despite this clarification, many Senators remained unconvinced and wanted to continue debating the issue.
However, the President of the Senate, Senator Godswill Akpabio, intervened at this point, stating that the provision had already been thoroughly examined and was in line with the Constitution. Akpabio reminded the Senators that Section 162(4) of the 1999 Nigerian Constitution grants the National Assembly the power to appropriate funds from either the Consolidated Revenue Fund or the Federation Account. This constitutional backing was meant to justify the proposal and settle any concerns about the legality of the funding arrangement.
Akpabio emphasized that if any party disagreed with the provision, they were free to challenge it in court. He stated firmly, “We don’t need to be debating on whether 15% statutory allocation of member states in a commission would be deducted or not,” referring to the constitutional authority that the National Assembly holds in appropriating funds for projects like the Zonal Development Commissions.
After Akpabio’s intervention, the Senate proceeded to a voice vote, and the proposal was adopted. The provision to use 15% of statutory allocations from member states to fund the Zonal Development Commissions was approved.
Once the debate on the funding source had been resolved, Senator Akpabio praised the Senate for their hard work and the hours spent in deliberation on the bills. He expressed his gratitude to his fellow Senators for their careful consideration of the matter. He also highlighted the importance of the Zonal Development Commissions, stating that they would play a crucial role in fostering regional development across the country. The commissions are expected to help address the specific needs and challenges faced by the various regions, as well as promote balanced development.
In addition to the South-South Development Commission Establishment Bill 2024, several other bills were also passed during the session. These included amendments to the existing North-West, South-East, and South-West Development Commission Acts, as well as the establishment of the North-Central Development Commission. All these bills aim to create the necessary legal framework for the functioning of the development commissions in each region.
The bills passed during this session are seen as a significant step toward establishing a more structured and organized approach to regional development in Nigeria. The Zonal Development Commissions will be expected to work closely with the federal government, state governments, and local communities to ensure that development is more evenly distributed across the country. This is especially important given Nigeria’s vast size and the disparities in development between different regions.
In conclusion, the Senate’s approval of the source of funding for the Zonal Development Commissions marks a major milestone in the country’s regional development efforts. While the debate over the funding mechanism was intense, the final decision reflects the importance of ensuring that the commissions are properly financed. The move also highlights the Senate’s commitment to promoting development that is tailored to the needs of specific regions, helping to address inequality and foster a more balanced national growth strategy. With the bills now passed, attention will likely turn to the practical implementation of the commissions and how effectively they can deliver on their mandate to promote regional development.
