The House of Representatives has commenced legislative consideration of a bill seeking to significantly strengthen the funding base of the South-South Development Commission (SSDC) by introducing new statutory revenue sources, including allocations from Value Added Tax (VAT), the Ecological Fund, and mandatory contributions from extractive and agricultural processing companies.
The proposal came under scrutiny on Wednesday during a public hearing organised by the House Committee on the South-South Development Commission on a bill to amend the South-South Development Commission (Establishment) Act, 2025.
Declaring the hearing open, Speaker of the House, Tajudeen Abbas, said the amendment is aimed at placing the SSDC on a financial footing comparable to other regional development commissions to enable it tackle the persistent developmental challenges confronting the South-South.
According to Abbas, the bill seeks to broaden the commission’s statutory funding sources to enhance its capacity to deliver on its mandate.
He noted that despite serving as the nation’s economic backbone through decades of oil and gas production, the South-South continues to grapple with severe environmental degradation, poor infrastructure, ecological challenges, youth unemployment and widespread socio-economic deprivation.
“The region has, for decades, remained the backbone of Nigeria’s oil and gas industry, contributing immensely to national revenue and economic growth. Yet, it continues to grapple with significant environmental degradation, infrastructure deficits, ecological challenges, youth unemployment and other socio-economic concerns that demand coordinated and sustained intervention,” he said.
The Speaker, however, stressed that while expanding the commission’s revenue streams is desirable, any proposal that introduces new statutory financial obligations must undergo rigorous legislative scrutiny to ensure fiscal responsibility, transparency, sustainability and fairness.
He urged stakeholders to make evidence-based submissions that would assist lawmakers in producing balanced legislation capable of driving meaningful development across the region.
Abbas also reaffirmed the commitment of the 10th House to inclusive lawmaking, describing public hearings as critical instruments of participatory democracy rather than mere constitutional formalities. He disclosed that the House would soon hold an Open Week to deepen public engagement and strengthen citizens’ confidence in the legislature.
Earlier, Chairman of the House Committee on the South-South Development Commission, Julius Pondi, said the proposed amendment seeks to place the SSDC on a stronger and more sustainable financial foundation through additional statutory funding sources.
He explained that the bill proposes contributions from extractive industries, agricultural processing companies, allocations from the Ecological Fund and a share of VAT revenues, among other funding mechanisms.
Pondi argued that although the South-South generates a substantial proportion of the nation’s wealth through oil and gas production, the region still bears the burden of environmental pollution, inadequate infrastructure, poverty and unemployment resulting from decades of intensive resource exploitation.
He maintained that the review of the commission’s funding framework would align the SSDC with other regional development commissions established by the Federal Government, which currently enjoy broader statutory funding arrangements.
The lawmaker, however, assured stakeholders that the committee had reached no predetermined conclusion on the bill, inviting constructive contributions and alternative proposals to strengthen the legislation.
“The committee is particularly interested in receiving informed perspectives on the necessity of the proposed amendment, the sustainability of the proposed funding framework, and recommendations that will further strengthen the objectives of the bill,” he said.
Established by an Act of the National Assembly in 2025, the South-South Development Commission was created to coordinate intervention programmes across the six states of the South-South geopolitical zone, with a mandate to address decades of environmental degradation, infrastructure deficits, unemployment and poverty arising largely from oil exploration activities.
The Atlantic Bell reports that If passed, the amendment will significantly expand the commission’s revenue base and place it on a funding structure similar to those of other regional development commissions, boosting its capacity to drive development in Nigeria’s oil-producing region.
