The House of Representatives Committee on the South-South Development Commission(SSDC) has engaged key stakeholders on to the amendment of the Act seeking to broaden the Commission’s funding sources
The House of Representatives Committee on the South-South Development Commission (SSDC) has resumed consultations with key stakeholders on a proposed amendment to the South-South Development Commission (Establishment) Act, 2025, as lawmakers seek to strengthen the Commission’s funding framework to fast-track development across the region.
At the resumed public hearing on Wednesday, the committee engaged government agencies, petroleum regulators, oil and gas operators and other stakeholders to scrutinise the proposed amendment before it is considered by the House.
Chairman of the committee, Rep. Julius Pondi, said the hearing was reconvened to accommodate critical stakeholders who were unable to attend the initial session on July 8 due to their participation in the Nigerian Oil and Gas Conference.
He noted that the oil and gas industry remains central to the proposed legislation, making it necessary to ensure that all relevant parties contribute to the lawmaking process.
Pondi reiterated the House’s commitment to an open and participatory legislative process, describing public hearings as vital to democratic governance because they allow government institutions, industry operators, professional bodies, civil society organisations and host communities to shape legislation through constructive engagement.
According to him, the amendment seeks to broaden the commission’s funding sources to enable it to more effectively fulfil its mandate of driving sustainable development in the South-South.
He observed that despite serving as the nation’s economic hub through petroleum production, maritime commerce and industrial activities, the region continues to grapple with poor infrastructure, environmental degradation and socio-economic challenges that require sustained intervention and adequate funding.
“We are particularly interested in receiving constructive contributions on the proposed funding framework, its sustainability, its implications for government and industry, as well as alternative proposals that can further strengthen the objectives of the legislation,” Rep. Pondi said.
He assured participants that all memoranda and presentations would be thoroughly reviewed before the committee submits its recommendations to the House, stressing that the goal is to produce balanced and practical legislation that advances the development of the South-South while protecting the national interest.
However, oil industry regulators and operators expressed reservations over a key provision of the bill requiring oil and gas producing companies in the south-south to contribute three per cent of their total annual budgets to the commission.
Presenting the position of the Nigerian Upstream Petroleum Regulatory Commission(NUPRC), the Commission Chief Executive, Mrs. Oritsemeyiwa Eyesan, represented by the Head of Regulations and Statutory Compliance, Kingsley Chikwendu, backed efforts to establish a transparent and sustainable funding model but warned that the proposed levy raises significant legal and fiscal concerns.
According to the NUPRC, the phrase “total annual budget” is not defined in the amendment, creating uncertainty over how the contribution would be calculated, assessed and enforced, including its treatment in joint venture operations and companies with assets across multiple regions.
Chikwendu cautioned that the proposal could amount to another expenditure-based levy payable regardless of a company’s profitability or production levels.
He added that upstream operators already shoulder multiple statutory obligations, including royalties, petroleum taxes, contributions to the Niger Delta Development Commission, the Host Community Development Trust Fund under the Petroleum Industry Act, the Nigerian Content Development Fund, environmental remediation responsibilities and abandonment fund contributions.
The commission urged lawmakers to carefully assess the impact of the proposed levy on production costs, investment decisions and the competitiveness of Nigeria’s upstream petroleum sector.
Similarly, the Nigerian Midstream and Downstream Petroleum Regulatory Authority(NMDPRA) urged the committee to ensure that any additional funding mechanism aligns with the fiscal framework and investment objectives of the Petroleum Industry Act, 2021.
Representing the Authority, Senior Manager Ahmed Laido said any new financial obligation should enhance regulatory certainty, attract long-term investment, strengthen investor confidence and support the Federal Government’s ease-of-doing-business agenda.
He warned that lawmakers should carefully consider the broader economic implications of the proposal to ensure that efforts to strengthen the Commission do not undermine the sustainability and competitiveness of Nigeria’s petroleum industry.
The Oil Producers Trade Section (OPTS) of the Lagos Chamber of Commerce and Industry (LCCI) also opposed the proposed levy, arguing that oil companies are already making substantial statutory contributions under existing laws.
Its Chairman, Bala Wudiri, said introducing another three per cent contribution would increase the financial burden on operators, duplicate existing obligations and reduce Nigeria’s attractiveness as an investment destination.
He urged the committee to adopt a balanced funding framework that would strengthen the commission without discouraging investment or creating overlapping statutory charges.
The public hearing reflected broad support for enhancing the commission’s capacity to deliver infrastructure and development projects across the south-south. However, stakeholders urged lawmakers to strike a balance between expanding the commission’s funding base and maintaining a stable, competitive and investment-friendly environment for the nation’s petroleum industry.
The committee is expected to review submissions from stakeholders before presenting its recommendations to the House of Representatives for further legislative action.
