Senate Approves 15% Deduction from State Allocations for Regional Commissions Amid Controversial LG Autonomy 

The Nigerian Senate on Thursday amended several bills establishing regional development commissions, approving a measure to allocate 15 per cent of state governments’ statutory allocations to support the funding and management of these commissions.

The legislative move, which affects the North-west Development Commission (NWDC), South-east Development Commission (SEDC), and South-south Development Commission (SSDC), is expected to extend to other regions once similar commissions are established.

The amendment, passed following the Senate’s Committee on Special Duties’ recommendations, mandates that 15 per cent of allocations from each commission’s member states be directed toward funding the commissions.

However, the provision was met with mixed reactions, with some senators expressing concerns that governors may not support the decision, potentially leading to legal disputes.

Abdullahi Yahaya (PDP, Kebbi North) voiced opposition, questioning whether the measure would gain traction among governors and warning of possible friction between state and federal governments.

The 15 per cent statutory allocation of member states for their regional commissions may be contested in court by some state governments, Yahaya argued.

Similarly, Senators Wasiu Eshinlokun (APC, Lagos East) and Seriake Dickson (PDP, Bayelsa West) highlighted potential resistance from governors, questioning the feasibility of mandating state contributions in this way.

In contrast, Deputy Senate President Barau Jibrin defended the amendment, clarifying that the proposed funding would not be directly deducted from state allocations but managed through federal calculations from the Consolidated Revenue Fund.

The 15 per cent allocation from member states will be calculated by the federal government and removed from the Consolidated Revenue Fund to support each region’s development commission, Jibrin stated.

Senate President Godswill Akpabio added that the allocation provision aligns with the 1999 Constitution’s Section 162(4), which authorises the National Assembly to appropriate funds from the Consolidated Revenue Fund or Federation Account.

Akpabio noted that the legislative authority over the appropriation and assured that the measure holds constitutional backing, urging colleagues to support the provision.

Following Akpabio’s remarks, the Senate conducted a voice vote, with the majority supporting the committee’s recommendations. The Senate President noted that the allocation model would apply to additional regional commissions upon their establishment.

Recall that a recent Supreme Court ruling advocating for local governments’ autonomy by permitting direct financial allocations from the federal government, bypassing state controls has led to controversies; the judgment, delivered by a seven-member panel led by Justice Emmanuel Agim, emphasises local governments’ right to receive direct funding.

Some governors have expressed dissatisfaction as regards the issues. For instance, Governor Seyi Makinde of Oyo State has voiced strong opposition to the ruling, stating that:

His government will not allow the people of the state to suffer from the fallout of the Supreme Court judgment which granted financial autonomy to local governments in the country, PUNCH reported.

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