On Wednesday, the House of Representatives considered and adopted the Niger Delta Development Commission’s (NDDC) 2024 Appropriation Bill, totaling N1.91 trillion.
This significant decision followed a detailed report from the Committee on NDDC, chaired by Mrs. Erhiatake Ibori-Suenu, which was presented during the plenary session.
In July, during a budget defense session before the House Committee on NDDC, the Managing Director of NDDC, Samuel Ogbuku, outlined the commission’s strategy for funding its proposed expenditures. Ogbuku stated that the NDDC plans to source N1 trillion from loans to finance ongoing legacy projects in 2024.
“We have strategically made provisions towards diversifying our sources of funding,” he explained. “The sum will be outsourced from development and commercial banks, with a focus on investing in critical infrastructure as a key component of our fiscal strategy under the 2024 budget proposals.”
Mrs. Ibori-Suenu provided a comprehensive breakdown of the financial expenditure and sources of funding while justifying the need for budget approval.
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She urged the House to consider the Committee on Niger Delta Development Commission’s report, detailing that the total sum of N1.911 trillion would be drawn from the Statutory Revenue Fund of the Niger Delta Development Commission.
Out of this amount, N38.55 billion is allocated for personnel expenditure, and N29.25 billion is designated for overhead expenditure.
The breakdown further reveals that N8.79 billion is set aside for internal capital expenditure, N835.22 billion for development projects, and N1 trillion for legacy projects, funded through borrowing for the fiscal year ending April 30, 2025.
The budget also allocates substantial funds for the commission’s head office and the nine states within the Niger Delta region, including Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo, and Rivers, totaling N1.84 trillion for development projects.
Staff welfare takes a considerable portion of the budget, with N531.78 billion earmarked for this purpose. Other allocations include severance benefits (N2.3 billion), medical insurance (N92 billion), and the staff housing scheme (N800.52 billion).
Additional expenses cover promotion arrears (N1.7 billion), voluntary retirement benefit schemes (N1.8 billion), pensions (N750 million), and recruitment services (N825.54 million), among others.
Recently, President Bola Tinubu approved the NDDC’s request to borrow an additional N1 trillion to fund its developmental projects in 2024.
Represented by Senate President Godswill Akpabio at a Niger Delta Stakeholders Summit in Port Harcourt, Tinubu reaffirmed his administration’s commitment to bringing lasting development to the oil-rich region.
“Mr. President is very committed to ensuring the development of the Niger Delta,” Akpabio stated. He emphasized that significant infrastructure projects, such as the Bayelsa-Rivers-Akwa Ibom Road (East-West Road) and the Lagos-Calabar Coastal Road, would receive focused attention and funding.
The approval of this unprecedented budget underscores the government’s dedication to the rapid development of the Niger Delta region. Akpabio stressed that the NDDC’s funds would be utilized within the region, ensuring that the money is spent on local projects rather than being diverted elsewhere.
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“We will not have people from Abuja coming here to stay in hotels and request funds from the NDDC to take back to other states of the federation. We are going to spend the money of NDDC right here in the Niger Delta region,” he asserted.
Following the House’s adoption of the committee’s recommendations, the bill is expected to be gazetted for Third Reading by the House Committee on Rules and Business, ahead of its final passage. This milestone marks a significant step towards realizing the comprehensive development goals set for the Niger Delta in the coming year.