The House of Representatives has passed the second reading of a bill that seeks to grant state governments full control over oil and mineral resources within their territories. If passed into law, the bill could significantly alter Nigeria’s revenue-sharing structure and the management of natural resources.
The bill, sponsored by Representative Julius Ihonvbere, aims to amend relevant sections of the Constitution to allow states to regulate and manage the extraction and sale of natural resources, including crude oil, gold, and other minerals. Currently, the federal government controls all mineral resources, with states receiving allocations from revenue generated.
Supporters of the bill argue that granting states control over their resources will promote economic development, encourage investment, and reduce dependency on federal allocations. Ihonvbere stated, “This bill will empower states to develop their resources, create jobs, and improve infrastructure without waiting for Abuja.”
However, some lawmakers and analysts have raised concerns, warning that such a policy shift could lead to inequality among states. Oil-producing states, for example, could become significantly wealthier, while states without natural resources may struggle financially. There are also concerns about potential conflicts over resource ownership and management.
Nigeria’s current revenue-sharing formula has long been a subject of debate, with oil-producing states pushing for greater control over proceeds from crude oil sales. The proposed bill is expected to generate further discussions in the coming months as it moves to the committee stage for further scrutiny.
