Senate scraps ‘special fund’ accounts for regional devt commissions, NYSC

The Senate has amended the Acts that recently established regional development commissions in the country by removing provisions that created special funds for depositing monies.

It stated that these provisions conflicted with Section 162 of the 1999 Constitution, which already recognizes the Federation Account as the sole account where all revenues generated by the Federation must be deposited.

The National Youth Service Corps Trust Fund was also amended in a similar manner during the Senate’s plenary session on Wednesday, presided over by its President, Sen. Godswill Akpabio.

To ensure compliance with the constitution, the Senate amended clauses 14 and 15 of the Acts establishing the North-West Development Commission, the South-West Development Commission, and the South-East Development Commission.

Similarly, clause 4(1) of the 2025 National Youth Service Corps Trust Fund Establishment Bill was amended to remove the trust fund provision.

As a result, the commissions will not operate a fund separate from the Federation Account, which will also retain the 15% deductions from the allocations of the states served by the commissions, along with other sources of funding for their operations.

Senate Leader, Sen. Opeyemi Bamidele, introduced the matter under a motion titled “Re-committal of Bills to the Committee of the Whole” for consideration.

He recalled that, although the National Assembly had previously passed the bills and forwarded them for President Bola Tinubu’s assent, the Senate later realized that the funding clauses conflicted with the constitution.

Sen. Bamidele stated,

“The Senate observed that the funding clauses for the commissions and the proposed fund to be established, as provided in the bills, appeared to contradict Section 162 of the 1999 Constitution, as amended.

ALSO READ: Ortom, Anyanwu shun PDP disciplinary hearing

“Section 1, subsections (1) and (3) of the Constitution of the Federal Republic of Nigeria, 1999, as amended, provide that the constitution is supreme and that any law contradicting it shall be null and void to the extent of the contradiction.

“Mindful that the Senate should not work in vain and must uphold the constitution like any other authority or individual in Nigeria, we relied on Orders 1(b) and 52(6) of our Standing Orders, 2023, as amended, to rescind our decisions on the affected clauses of the development commissions’ bills and the NYSC Trust Fund Bill.

“This led to the recommittal of the bills to the Committee of the Whole for reconsideration and passage.”

Section 162(1) of the constitution states:

“The Federation shall maintain a special account to be called ‘the Federation Account,’ into which shall be paid all revenues collected by the Government of the Federation, except the proceeds from the personal income tax of the personnel of the Armed Forces of the Federation, the Nigeria Police Force, the Ministry or Department of Government responsible for Foreign Affairs, and the residents of the Federal Capital Territory, Abuja.”

The amended bills were passed for a third reading on Wednesday to ensure that the funding of the commissions complies with the constitution.

The Senate has amended the Acts that recently established regional development commissions in the country by removing provisions that created special funds for depositing monies.

It stated that these provisions conflicted with Section 162 of the 1999 Constitution, which already recognizes the Federation Account as the sole account where all revenues generated by the Federation must be deposited.

The National Youth Service Corps Trust Fund was also amended in a similar manner during the Senate’s plenary session on Wednesday, presided over by its President, Sen. Godswill Akpabio.

To ensure compliance with the constitution, the Senate amended clauses 14 and 15 of the Acts establishing the North-West Development Commission, the South-West Development Commission, and the South-East Development Commission.

Similarly, clause 4(1) of the 2025 National Youth Service Corps Trust Fund Establishment Bill was amended to remove the trust fund provision.

As a result, the commissions will not operate a fund separate from the Federation Account, which will also retain the 15% deductions from the allocations of the states served by the commissions, along with other sources of funding for their operations.

Senate Leader, Sen. Opeyemi Bamidele, introduced the matter under a motion titled “Re-committal of Bills to the Committee of the Whole” for consideration.

He recalled that, although the National Assembly had previously passed the bills and forwarded them for President Bola Tinubu’s assent, the Senate later realized that the funding clauses conflicted with the constitution.

Sen. Bamidele stated,

“The Senate observed that the funding clauses for the commissions and the proposed fund to be established, as provided in the bills, appeared to contradict Section 162 of the 1999 Constitution, as amended.

“Section 1, subsections (1) and (3) of the Constitution of the Federal Republic of Nigeria, 1999, as amended, provide that the constitution is supreme and that any law contradicting it shall be null and void to the extent of the contradiction.

“Mindful that the Senate should not work in vain and must uphold the constitution like any other authority or individual in Nigeria, we relied on Orders 1(b) and 52(6) of our Standing Orders, 2023, as amended, to rescind our decisions on the affected clauses of the development commissions’ bills and the NYSC Trust Fund Bill.

“This led to the recommittal of the bills to the Committee of the Whole for reconsideration and passage.”

Section 162(1) of the constitution states:

“The Federation shall maintain a special account to be called ‘the Federation Account,’ into which shall be paid all revenues collected by the Government of the Federation, except the proceeds from the personal income tax of the personnel of the Armed Forces of the Federation, the Nigeria Police Force, the Ministry or Department of Government responsible for Foreign Affairs, and the residents of the Federal Capital Territory, Abuja.”

The amended bills were passed for a third reading on Wednesday to ensure that the funding of the commissions complies with the constitution.

Speaking after the bills were passed, Akpabio commended the senators for their swift work in advancing national development.