By DAYO ADESULU
Allocation from Consolidated Revenue Fund
On Thursday, the Senate of Nigeria approved a funding model that allocates 15 percent of statutory allocations from member states to finance newly established zonal development commissions. This decision followed the consideration and adoption of a report from the Senate Committee on Special Duties, which outlined the establishment of these commissions.
Key Highlights of the Approval
- Funding Source: The approved funding model will draw from the Consolidated Revenue Fund, with the 15 percent allocation intended to support various zonal commissions across the country.
- Initial Disagreements: The Senate experienced some division over the proposed funding during the clause-by-clause review of the South-South Development Commission Establishment Bill 2024, which serves as a template for other zonal commissions. Concerns were raised regarding the implications of the funding model on state budgets.
- Concerns from Lawmakers: Senators such as Yahaya Abdullahi (PDP, Kebbi North) and Wasiu Eshinlokun (APC, Lagos East) expressed apprehensions that the allocation could lead to legal challenges from state governments. Abdullahi specifically warned that states would resist any reduction in their statutory allocations.
- Clarification from Senate Leadership: In response to these concerns, Deputy President of the Senate, Barau Jibrin, clarified that the 15 percent allocation would not be a direct deduction from state funds. Instead, it would be calculated by the Federal Government and funded from the Consolidated Revenue Fund.
- Constitutional Validation: Senate President Godswill Akpabio defended the provision’s constitutionality, referencing Section 162(4) of the 1999 Constitution, which grants the National Assembly the power to appropriate funds from either the Consolidated Revenue Fund or the Federation Account. He affirmed that any challenges to this decision could be pursued in court.
Passage of Related Bills
Following the discussions, Akpabio called for a voice vote, which resulted in a majority in favor of the funding provision. The bills passed during this session included:
- South-South Development Commission Establishment Bill 2024
- North West Development Commission Act (Amendment) Bill 2024
- South-East Development Commission Act (Amendment) Bill 2024
Additionally, the South West Development Commission Establishment Bill 2024 and North Central Development Commission Establishment Bill 2024 had been passed in previous sessions.
Implications of the Decision
- Foundation for Regional Development: The establishment of these zonal development commissions is expected to provide a structured approach to regional development, addressing specific needs and challenges faced by different areas of Nigeria.
- Support for the Ministry of Regional Development: The commissions will lay the groundwork for the newly created Ministry of Regional Development, aimed at promoting balanced development across the nation.
- Potential Legal Challenges: While the Senate’s decision is backed by constitutional provisions, the concerns raised by some lawmakers suggest that states may seek legal recourse to challenge the funding model, which could lead to further debates on the implications of the allocation.
Conclusion
The Senate’s approval marks a significant step in the establishment of zonal development commissions in Nigeria, reflecting a commitment to regional development. The allocation of funds from the Consolidated Revenue Fund aims to enhance development initiatives while navigating the complexities of state and federal funding dynamics. As this process unfolds, the reactions from state governments and the potential for legal challenges will be closely watched.
