The decision of the House followed the consideration of a report of the Committee on NDDC, chaired by Mrs Erhiatake Ibori-Suenu during Wednesday’s plenary.
While defending the commission’s 2024 budget before the House Committee on NDDC earlier in July, Managing Director of the NDDC, Samuel Ogbuku, stated that the commission would source funding of its proposed spending from loans to the tune of N1tn.
“We have strategically made provisions towards diversifying our sources of funding as we intend to source an aggregate sum of N1 trillion to fund ongoing legacy projects of the commission in 2024. The sum will be outsourced from development and commercial banks, “Ogboku said, stressing that “Investing in critical infrastructure is a key component of our fiscal strategy under the 2024 budget proposals”.
Justifying the need to pass the budget, Ibori-Suenu gave a breakdown of the financial expenditure and sources of funding, saying, “We urge the House to consider the report of the Committee on Niger Delta Development Commission on the issue from the Statutory Revenue Fund of the Niger Delta Development Commission the total sum of N1.911tn, out of which the sum of N38.55bn is for personnel expenditure, while the sum of N29.25bn only is for overhead expenditure.
According to the Peoples Democratic Party lawmaker, “N8.79 bn only is for internal capital expenditure, the sum N835.22bn only is for development projects, while the sum of N1tn only is for legacy projects funded by borrowing for the year ending April 30, 2025.”
A breakdown of the budget shows that the head office of the commission and the nine states of Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers will spend a total sum of N1.84tn on development projects.
Staff welfare gulps N531.78 bn, severance benefits N2.3bn, medical insurance N92 billion and staff housing scheme N800. 52bn.
Others include promotion arrears N1.7bn, voluntary retirement benefit scheme N1.8bn, pension N750m, and recruitment services N825.54m, among others.
President Bola Tinubu recently approved NDDC’s request to borrow additional N1tn to fund its developmental projects in the 2024 fiscal year.
Tinubu, who was represented by the Senate President, Godswil Akpabio, at a Niger Delta Stakeholders Summit last week in Port Harcourt, the Rivers State capital, pledged the commitment of his administration to bring lasting development to the oil-rich region.
“Mr President is very committed to ensuring the development of the Niger Delta. The Bayelsa-Rivers-Akwa Ibom Road called East-West Road will be tackled.
“The Lagos-Calabar Coastal Road started by the President will not only start from Lagos, Mr President has also agreed that it must also take root from Niger Delta simultaneously, then it will get up with the one in Lagos.
“The Niger Delta Development Commission has never had the kind of budget that they are having in 2024. The President has approved that they can go ahead and get a soft loan of N1tn to complete all the other projects that they have in mind to bring quick development to this region. So the MD of NDDC is no longer going to lack funds, it is going to be the issue of commitment.
“We will not have people from Abuja coming here to stay in the hotel and requesting to be in NDDC to collect money and take it back to other states of the federation. We are going to spend the money of NDDC right here in the Niger Delta region, ”Akpabio was quoted as saying on behalf of the Commander-in-Chief.”
Following the adoption of the committee’s recommendations, it is expected to be gazetted for Third Reading by the House Committee on Rules and Business ahead of the third reading and passage.
