NASS strips SWDC of 3% seaports, airport, oil and gas revenues
The House of Representatives has passed the amended South West Development Commission Bill, removing provisions that would have allocated revenue from airports, seaports, and gas companies operating in the South West region.
During Tuesday’s plenary session, Speaker of the House Abbas Tajudeen explained to lawmakers that the bill had to be reconsidered following objections raised by President Bola Ahmed Tinubu.
The president had opposed certain provisions on the grounds that they conflicted with the Nigerian Constitution. After deliberation and approval on Tuesday, the revised bill was read for the third time and subsequently passed on Wednesday. It will now be forwarded to the president for his assent.
The bill aims to establish the South West Development Commission, which will be responsible for receiving and managing funds from the Federation Account, as well as donations and grants, to support infrastructure reconstruction and address ecological, environmental, and developmental challenges in the region. However, amendments to the bill led to the removal of Clause 14 (b, c, d, and e), which previously outlined specific revenue sources for the commission.
One of the key provisions removed was Clause 14(b), which mandated that three percent of the annual budget of any federal seaport and airport in the South West be allocated to the commission. This was seen as a significant potential revenue stream, but it was struck out due to constitutional concerns.
Similarly, Clause 14(c), which required that three percent of the total annual budget of oil-producing and gas-processing companies operating in the South West be directed to the commission, was also deleted. Lawmakers argued that this provision clashed with existing laws governing the oil and gas industry.
In addition, Clause 14(d), which proposed that three percent of the annual budget of any solid mineral extraction and mining company operating in the region be allocated to the commission, was removed. This clause, like the others, was deemed inconsistent with Nigeria’s constitutional and regulatory frameworks.
Furthermore, Clause 14(e), which allocated fifty percent of ecological funds due to member states of the commission, was also struck out. The removal of these clauses means that the commission will not receive direct funding from these sources, which had initially been included to ensure sustainable financial support for its operations.
Despite these deletions, the bill retains provisions for alternative funding mechanisms. The revised law states that the commission shall establish and maintain a fund to cover its operational expenses.
To support this, the Federal Government will contribute an amount equivalent to fifteen percent of the total monthly statutory allocations due to member states of the commission from the Federation Account. In addition to federal contributions, the commission may receive financial support through grants, loans, or deposits from federal or state governments, local and international institutions, and other funding bodies.
The bill also allows the commission to generate revenue through various means, including donations, gifts, aid, testamentary dispositions, and proceeds from its own assets.
By retaining these provisions, lawmakers intend to ensure that the commission has the necessary resources to fulfil its mandate while remaining within constitutional limits. With these revisions, the bill seeks to promote regional development in the South West while addressing concerns over financial sustainability and legal compliance.
