By Abdullahi Lukman
The House of Representatives has begun consideration of a bill seeking to expand the funding sources of the South-South Development Commission (SSDC) through additional statutory allocations from Value Added Tax (VAT), the Ecological Fund and contributions from extractive and agricultural processing companies.
The proposal was the focus of a public hearing organised on Wednesday by the House Committee on the South-South Development Commission as part of efforts to amend the South-South Development Commission (Establishment) Act, 2025.
Speaking at the hearing on Wednesday Speaker of the House of Representatives, Tajudeen Abbas, said the amendment is intended to place the SSDC on the same financial footing as other regional development commissions to enable it to effectively address the developmental challenges facing the South-South.
He noted that despite being Nigeria’s main oil and gas producing region, the South-South continues to grapple with environmental degradation, inadequate infrastructure, ecological challenges, unemployment and widespread poverty.
Abbas, however, stressed that any proposal introducing new statutory financial obligations must undergo thorough legislative scrutiny to ensure it is transparent, sustainable and in the national interest. He urged stakeholders to make evidence-based submissions that would guide the National Assembly in producing balanced legislation.
Chairman of the House Committee on the South-South Development Commission, Julius Pondi, said the amendment seeks to strengthen the commission’s financial base by introducing new revenue streams, including allocations from the Ecological Fund, a share of VAT proceeds and statutory contributions from extractive industries and agricultural processing companies.
According to him, the South-South has contributed significantly to Nigeria’s economy through oil and gas production but continues to face severe developmental deficits resulting from decades of intensive resource exploitation.
Pondi said the proposed review is aimed at providing the commission with a more sustainable funding framework comparable to those of other regional development commissions, while emphasising that the committee remains open to recommendations from stakeholders.
Established in 2025, the South-South Development Commission was created to coordinate intervention programmes across the region and address challenges such as environmental degradation, poor infrastructure, unemployment and poverty.
If passed, the amendment would broaden the commission’s statutory funding sources to strengthen its capacity to implement development projects across the six South-South states.
