A lawyer, Myson Nejo, has issued a 14-day ultimatum to Ondo State Acting Governor Lucky Aiyedatiwa to remit the statutory 40 per cent allocation of the 13 per cent oil derivation to the Ondo State Oil Producing Areas Development Commission (OSOPADEC).
Nejo, in a letter addressed to Aiyedatiwa, said the plan to divert the fund had stalled development in the mandated communities impacted by oil exploration activities.
The lawyer, who vowed to sue the state government, said the 1999 Constitution (as amended) in Section 162(2) designated the fund as compensation for loss of fishing rights and productive farmlands resulting from oil and gas exploration and production activities.
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He said: “On July 22, 2023, Ondo State received a substantial allocation of N2,968,156,301.71 billion from the Federation Account Allocation Committee (FAAC) as its share of the 13 per cent derivation funds.
“As per the law, 40 per cent of this sum, amounting to N1,187,262,520.68 billion, rightfully belongs to OSOPADEC. We hereby demand, unequivocally and in accordance with Section 162 of the Constitution and the OSOPADEC Law that the Ondo State Government should immediately remit the full 40 per cent allocation to OSOPADEC’s designated account within 14 days of receipt of this letter.
“Failure to comply with this lawful obligation will leave us with no recourse but to seek judicial intervention. Consequently, if this demand is not met, we shall initiate legal proceedings against the Ondo State Government to compel the immediate payment of N1,187,262,520.68 billion to OSOPADEC.”
“We will also seek a court order restraining the state government from diverting or tampering with the 40 per cent of the 13 per cent derivation funds accruable to Ondo State, in accordance with the provisions of the Ondo State Oil Producing Areas Development Commission Law, Cap 106, Laws of Ondo State.
“A court order will also be sought to restrain the Federal Government from releasing the allocation belonging to Ondo State in the 13 per cent derivation, unless the statutory provisions in respect of OSOPADEC are complied with.
“It is also important to state without mincing words that we will be claiming all outstanding sums to which OSOPADEC is statutorily entitled since the commencement of the current administration that have not been refunded or disbursed to the commission appropriately in line with the constitution and the OSOPADEC law.
“We believe that upholding the rule of law and adhering to the clear stipulations of the constitution and the OSOPADEC Law will promote equitable development and alleviate the sufferings of Ilaje and Ese-Odo local governments, who have long awaited the intervention they are entitled to through OSOPADEC.
“We trust that you will treat this matter with the utmost gravity it deserves, and we expect a prompt and decisive resolution that aligns with the principles of justice and the well-being of our region.”