By Paul Effiong, Abuja
The Ministry of Regional Development has rejected certain provisions of the South South Development Commission (Establishment) Act, 2025, signed into law by President Bola Ahmed Tinubu, arguing that they contravene sections of the 1999 Constitution of the Federal Republic of Nigeria (as amended).
This came as the House of Representatives Committee on the South South Development Commission assured stakeholders of its commitment to promoting effective collaboration among government intervention agencies in the discharge of their respective mandates.
The Minister of Regional Development, Hon. Abubakar Momoh, made the Ministry’s position known at a public hearing organised by the House Committee with ministries and agencies of the Federal Government under its oversight on Wednesday in Abuja.
Represented by his Special Assistant, James Khanoba, the Minister warned that implementing the South South Development Commission (Establishment) Act, 2025, in its current form would adversely affect the operations of oil and gas companies in Nigeria.
He explained that the Act provides that 50 per cent of the statutory allocations due to the South-South states should be remitted to the Commission.
The Ministry further noted that the Act also mandates the remittance of 50 per cent of the Ecological Fund to the Commission, a provision it described as inconsistent with the Constitution.
The Ministry also faulted the provision requiring the six South-South states to remit 15 per cent of their internally generated revenues to the Commission, describing it as unconstitutional.
It further expressed concern over the provision compelling every oil and gas company operating in Nigeria to contribute three per cent of its operational expenditure to the Commission, arguing that such a requirement would place an undue financial burden on the companies.
The Ministry therefore urged the House of Representatives to review the South South Development Commission (Establishment) Act, 2025, with a view to amending the contentious provisions to prevent undue pressure on the oil and gas industry.
In his remarks, the Chairman of the House Committee on the South South Development Commission, Hon. Dr Julius Pondi, assured stakeholders that the Committee would do everything within its powers to foster synergy among all intervention agencies to ensure efficient service delivery.
He also stressed that the Ministry of Regional Development should not accord preferential treatment to any of the six regional development commissions established by the Federal Government, insisting that all should be treated fairly in line with their statutory mandates.
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