Funding Nigeria’s Regional Development Commissions: Senate Approves 15% Statutory Allocation from Member State Governments

The Nigerian Senate has passed an amendment bill that aims to boost the funding of regional development commissions by allocating 15 percent of the statutory allocations from member state governments.

The allocation will go to regional development commissions like the North-west Development Commission (NWDC), South-east Development Commission (SEDC), and South-south Development Commission (SSDC), which aims to strengthen these bodies’ financial capacity to drive regional development initiatives.

However, the approval to amend the funding framework for regional development commissions has stirred both optimism and skepticism. While some lawmakers have welcomed this move as a step toward addressing Nigeria’s regional disparities, there is growing concern about whether the funds will be used effectively or fall prey to embezzlement and mismanagement.

Many stakeholders are questioning whether this financial injection will translate into genuine developmental progress. The primary concern is the potential for mismanagement and embezzlement, which has plagued other government-run development initiatives in the past. Critics argue that while the amendment aims to boost the capabilities of regional commissions, the effectiveness of this funding largely depends on stringent financial oversight mechanisms.

In addition to this concern, Senator Abdullahi Yahaya, who voiced opposition to the amendment during Senate deliberations, noted that governors may contest the allocation and resist compliance.

“The 15 percent of statutory allocations of member states recommended for funding of their zonal development commissions would be litigated against by some state governments,” he said.

Beyond the potential legal disputes, the most significant underlying issue is about ensuring that these funds are not misappropriated once disbursed to the commissions.

Lessons from the Niger Delta Development Commission (NDDC)

The skepticism surrounding the new funding model for regional development commissions is not without precedent. The Niger Delta Development Commission (NDDC), established to address the developmental challenges in the oil-rich Niger Delta region, has been mired in corruption scandals, gross mismanagement, and inefficiency since its inception. Despite receiving substantial government funding and support, the NDDC has consistently failed to deliver on its mandate of improving infrastructure, economic opportunities, and the living conditions of people in the Niger Delta.

Numerous reports have documented instances of funds meant for development projects being diverted for personal gain, abandoned projects littering the region, and contracts awarded without any substantial work done. High-profile investigations and audits have revealed widespread corruption, with funds amounting to billions of naira allegedly siphoned off by officials and contractors. The current Senate President, Godswill Akpabio, who was once the head of the commission, was accused of malfeasance, involving billions of looted funds.

This sordid history has left many Nigerians deeply skeptical about similar funding arrangements for other regional commissions.

Against this backdrop, critics of the new amendment are raising alarms about the risk of replicating the NDDC’s failings on a broader scale, with many regional commissions being approved recently. They argue that unless the government establishes strict measures to ensure transparency and accountability, the additional funds allocated to regional commissions could suffer the same fate as those of the NDDC.

Tackling the Challenge with Robust Oversight Mechanisms

With the amendment passing the Senate, stakeholders, and experts are calling for the establishment of robust financial oversight mechanisms to guard against potential abuses. Good governance advocates emphasize the need for independent monitoring bodies to track how the funds are utilized and ensure that projects financed by the commissions are executed as planned. Additionally, some lawmakers have suggested the involvement of civil society organizations in auditing the commissions’ activities to enhance transparency.

Senate President Akpabio, who supported the amendment on the grounds that it is constitutionally sound, also acknowledged the need for proper oversight. Citing Section 162, subsection 4, of the 1999 Constitution, Akpabio argued that the National Assembly has the authority to appropriate funds from the Consolidated Revenue Fund or Federation Account for specific purposes. However, he stressed that such appropriations must be monitored closely to prevent misuse.

“Fifteen percent of statutory allocation of member states has been recommended by the Senate and by extension the National Assembly for funding their zonal development commission by the federal government,” Akpabio said.

He added that the Senate would continue to exercise its oversight functions to ensure that the commissions fulfill their developmental mandates.

Deputy Senate President Barau Jibrin also weighed in, stating that while the funds would technically come from state allocations, the transfer would be administered by the federal government through the Consolidated Revenue Fund. He suggested that this arrangement would help improve transparency in the disbursement process.

However, critics argue that this level of federal oversight may not be sufficient to prevent embezzlement at the commission level, where funds are most vulnerable.

Despite the concerns, the amendment has been lauded as a positive development that could accelerate regional economic growth if implemented effectively. Many believe that regional development commissions are essential for addressing localized developmental needs and reducing the uneven distribution of resources across Nigeria’s geopolitical zones. The financial backing provided by the 15 percent allocation is seen as a potential game-changer that could enhance the commissions’ ability to execute critical infrastructure projects and social programs.