Written by SpringsNewsNG Media Limited, March 26, 2025.

A bill seeking to amend the 1999 Constitution to transfer control of Nigeria’s natural resources from the federal government to individual states has successfully passed its second reading in the House of Representatives. If enacted, the legislation will grant states greater autonomy over the exploration, management, and revenue generation of natural assets within their territories.

The bill, titled “A Bill for an Act to Alter the Provisions of the Constitution of the Federal Republic of Nigeria, 1999 to Decentralize the Governance of Natural Resources in the Federal Republic of Nigeria to Transfer Mines and Minerals, Including Oil Fields, Oil Mining, Geological Surveys and Natural Gas from the Exclusive Legislative List to the Concurrent Legislative List and for Related Matters (HB. 200, 1310, 1446 & 1546)”, was sponsored by Speaker of the House Abbas Tajudeen and three other lawmakers.

Key Provisions of the Bill

Under the current constitutional arrangement, resources such as mines, minerals, oil fields, and natural gas are exclusively managed by the federal government. These fall under the Exclusive Legislative List, meaning only the federal government has the power to make laws and decisions regarding their control and management.

However, the proposed amendment seeks to remove Item 39 from the Exclusive Legislative List and place it under the Concurrent Legislative List, allowing both federal and state governments to legislate on resource governance. If passed, states would be able to issue mining and oil exploration licenses, regulate extraction, and collect revenues independently from the federal government.

Implications of the Bill

Supporters argue that decentralizing resource control will foster economic development at the state level, allowing states to benefit directly from the wealth generated within their territories. This, they say, will also encourage competitive and efficient resource management.

However, critics warn that the bill could create economic disparities among states, with oil-producing regions gaining significantly more revenue than non-resource-rich states. There are also concerns about regulatory inconsistencies and the potential for conflicts between state and federal authorities over resource management.

Next Steps in the Legislative Process

With the bill passing its second reading, it will now proceed to the Committee Stage, where it will undergo further scrutiny, particularly by the committee on constitution amendment. If approved, it will return for a third reading before being sent to the Senate for concurrence.

For the bill to become law, it must also secure approval from two-thirds of the 36 State Houses of Assembly, as mandated by Section 9 of the 1999 Constitution for constitutional amendments.

A similar bill introduced in 2016 stalled at the second reading, but proponents are hopeful that the current push for resource decentralization will gain enough legislative support to succeed.