House of Representatives Proposes Expansion of Funding for South-South Development Commission

The House of Representatives has initiated the legislative process to amend the South-South Development Commission (SSDC) Act of 2025, with a primary focus on significantly broadening the commission’s revenue base.

During a public hearing on Wednesday, the House Committee on the South-South Development Commission presented proposals to include additional statutory funding sources for the agency. These include shares from Value Added Tax (VAT) revenues, allocations from the Ecological Fund, and mandatory contributions from companies operating within the extractive and agricultural processing sectors.

Speaker of the House, Tajudeen Abbas, emphasized that the amendment is intended to place the SSDC on a financial footing comparable to other regional development commissions. He noted that while the South-South region serves as the economic backbone of Nigeria’s oil and gas industry, it continues to face severe challenges, including environmental degradation, infrastructure deficits, and high youth unemployment.

“The objective is to provide the commission with a funding structure comparable to those of other regional development commissions, thereby enhancing its capacity to address the developmental priorities of the South-South region,” the Speaker stated. However, he cautioned that any expansion of statutory financial obligations would undergo rigorous legislative scrutiny to ensure fiscal responsibility and sustainability.

The Chairman of the House Committee on the SSDC, Julius Pondi, explained that the current funding framework is inadequate to meet the commission’s extensive mandate. He argued that given the region’s unique strategic position and its contributions to the national economy, it requires a more robust and sustainable financial structure to effectively tackle decades of socio-economic issues.

The public hearing served as a forum for stakeholders to offer evidence-based feedback on the necessity and feasibility of the new funding streams. The committee reaffirmed that it has not reached any predetermined conclusions, inviting participants to provide constructive alternatives that would ensure the commission achieves measurable development outcomes.

The SSDC was established in 2025 to coordinate intervention programs across the six states of the South-South geopolitical zone, specifically targeting the lasting impacts of oil exploration and regional underdevelopment.