By Gloria Ikibah
The House of Representatives has intensified consultations on a proposed amendment to the South-South Development Commission (Establishment) Act, 2025, seeking stakeholders’ input on plans to strengthen the Commission’s funding base while balancing the interests of government, host communities and the petroleum industry.
At the resumed public hearing on Wednesday, the House Committee on the South-South Development Commission engaged government agencies, petroleum regulators, oil producers and other stakeholders on the proposed legislation, which seeks to expand the Commission’s funding sources to accelerate development across the oil-rich region. 
Committee Chairman, Rep. Julius Pondi, explained that the hearing was reconvened after several critical stakeholders were unable to attend the earlier session held on July 8 because they were participating in the Nigerian Oil and Gas (NOG) Conference.
According to him, “the committee considered it necessary to provide all relevant stakeholders with an opportunity to contribute to a bill with far-reaching implications for the region and the petroleum sector”.
Pondi reaffirmed the commitment of the House to an “open and participatory legislative process”, noting that public hearings remain essential in ensuring that laws reflect the views of government institutions, industry operators, professional bodies, civil society organisations and host communities.
He said the amendment was designed to strengthen the Commission’s financial capacity to fulfil its mandate of promoting sustainable development in the South-South.
According to him, despite serving as the nation’s economic backbone through petroleum production, maritime commerce and industrial activities, the region continues to grapple with inadequate infrastructure, environmental degradation and persistent socio-economic challenges.
“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,” Pondi said.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) expressed support for a transparent and sustainable funding framework for the Commission but raised concerns over the proposal requiring oil and gas companies operating in the South-South to contribute three per cent of their total annual budgets.
Presenting the Commission’s position, Chief Executive Officer, Mrs Oritsemeyiwa Eyesan, represented by the Head of Regulations and Statutory Compliance, Kingsley Chikwendu, argued that the phrase “total annual budget” remained undefined in the bill, creating uncertainty over how the levy would be assessed and implemented.
He warned that the proposal, if retained in its current form, could effectively introduce another expenditure-based levy payable regardless of profitability, production levels or the financial position of affected companies.
Chikwendu noted that upstream operators already shoulder multiple statutory obligations, including royalties, petroleum taxes, contributions to the Niger Delta Development Commission (NDDC), Host Community Development Trust Funds under the Petroleum Industry Act (PIA), the Nigerian Content Development Fund, environmental remediation commitments and abandonment funds.
He urged lawmakers to carefully evaluate the likely impact of the proposed levy on investment decisions, production costs and the competitiveness of Nigeria’s upstream petroleum sector before reaching a final decision.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) also advised the committee to ensure that any additional funding mechanism aligns with the fiscal philosophy and investment objectives of the Petroleum Industry Act, 2021.
Representing the Authority, Senior Manager Ahmed Laido said any new financial obligation should strengthen investor confidence, provide regulatory certainty, encourage long-term investment and support the Federal Government’s ease-of-doing-business reforms.
He stressed that lawmakers should consider the wider economic implications of the proposal to ensure the Commission’s funding objectives do not undermine the competitiveness and sustainability of the petroleum industry.
The Oil Producers Trade Section (OPTS) of the Lagos Chamber of Commerce and Industry similarly cautioned against introducing another statutory levy on operators.
Chairman of OPTS, Bala Wudiri said oil and gas companies were already making substantial statutory contributions under existing laws, including payments to the NDDC and the Host Community Development Trust Fund.
He cautioned that imposing an additional three per cent contribution could increase the financial burden on operators, duplicate existing obligations and reduce Nigeria’s attractiveness as an investment destination.
Wudiri urged the committee to provide greater clarity on the proposed funding mechanism and adopt a balanced approach that would strengthen the South-South Development Commission without discouraging investment or creating overlapping statutory obligations.
The hearing highlighted broad support for improving development across the South-South, even as stakeholders differed on the most appropriate funding model.
Participants agreed that the Commission requires adequate resources to deliver critical infrastructure and development projects but urged lawmakers to ensure that any new funding framework preserves a stable, competitive and investment-friendly environment for Nigeria’s petroleum industry.
The committee is expected to review all memoranda and submissions before presenting its recommendations to the House of Representatives for further legislative consideration.
