The Nation Newspaper

Tag: Derivation

  • Derivation: ‘Fed Govt not fair to Akwa Ibom’

    Akwa Ibom State Governor Udom Emmanuel has accused the All Progressives Congress (APC)-led Federal Government of deliberately withholding derivation funds due to his state for political reasons.

    Emmanuel said within two months, “they have dropped the allocation of my state by N6.8 billion all in the name of politics; that is what is going on.”

    He described the Federal  Government’s action as ‘political witch-hunt’ against the state, and urged Nigerians to be careful who they elect as President in 2019.

    The governor spoke yesterday at the Government House, Uyo, when a presidential aspirant of the Peoples Democratic Party (PDP), Alhaji Kabiru Aminu Turaki, led his campaign team on a visit.

    On the preparation for next year’s elections, Emmanuel said PDP governors would not interfere with party primaries in their states.

    “Governors elected on the PDP platform are determined not to influence the party primary election but to ensure that the exercise is free and fair,” Emmanuel said.

    He hailed the quality of PDP presidential aspirants seeking the ticket, and suggested that aspirants should present their manifesto to Nigerians on live television.

    “All power belongs to God. If you must get there, no power can stop you. Whoever God destined to be the president of our country will be and God will use us to bring that person to power,” he said.

    Emmanuel noted that  everything will be done to ensure success of the party at the poll.

    The governor described the purported notice of impeachment to Benue State Governor Samuel Ortom by eight APC legislators as regrettable and undemocratic.

    Turaki  described Emmanuel as the most performing governor in the country, whose achievements should be replicated in other states.

    The presidential aspirant said: “When you want a government that will permeate all the strata of human society, when you want the people to feel the positive impact of democracy dividends, you do not just get anybody into elective position, you look at their pedigree, background, accomplishments and what they stand for and that will determine what they bring to the table.”

  • ‘No true federalism without 50 per cent derivation to Niger Delta’

    Leaders of Niger Delta yesterday said the quest for true federalism in Nigeria would be a mirage without the region getting 50 per cent of its crude oil resources.

    Meeting under Pan Niger Delta Forum (PANDEF), they faulted allegations that governors of the region have not used its wealth well.

    PANDEF Chairman and ex-Military Administrator of Akwa Ibom Air Commodore Idongesit Nkanga (rtd)  spoke with reporters in Uyo after the inaugural meeting of the executive in Uyo at weekend.

    Nkanga said: “The old revenue sharing formula, which had 50 per cent going to the regions, 30 into the distribution pool and 20 for the devleopment of the federal capital led to the varying development we saw in the three different regions. We wondered why it was abandoned after the discovery of oil in Niger Delta.”

    He lamented that issues, promises and decisions reached when Vice President Yemi Osibanjo visited the region were yet to be implemented.

    “The issues we are talking about include the clean up of Ogoniland, which has remained as it is when it was launched. We are also talking about an end to gas flaring, which we have not seen rather the Federal Government is collecting penalties for that and sharing it equally to states. Meanwhile, only the people of Niger Delta suffer the horrific effects of gas flaring.

    “ We are also talking about the relocation of headquarters of International Oil Companies to their areas of  operation, but regrettably, many have not done so and there is also smuggling of offshore onshore oil dichotomy into the El Rufai committee on restructuring. The Green Tree agreement modular refineries and corrupt bordering the people.

    “We believe in new and peaceful methods and ways to negotiate a better deal for our people and Nigerians but people should not mistake our peaceful ways for weakness. We are not weak but believe that peaceful means will eliminate destruction of life and prosperity, especially of people in the region,” Nkanga explained.

    He said PANDEF was instrumental to the ceasefire between the Federal Government and militants, which increased Nigeria’s crude oil production from 200,000 BPD to 2.5M BPD and bringing in about N3 billion daily into the coffers of the Federal Government.

    PANDEF, he said, was collaborating with Ohaneze Ndigbo, Odua Peoples Congress and the Middle Belt Forum for a better deal.

    The chairman added that the group will hold rallies in the four regions to sensitise people on their agenda for a better Nigeria.

    He called on the region to partner the organisation in its quest to negotiate its future.

     

     

  • Derivation principle stirs controversy at conference

    The recommendation of the National Conference Committee on Devolution of Power for the retention of 30 per cent derivation principle became a contentious issue yesterday among the delegates.

    A co-chairman of the committee, Obong Victor Attah, had submitted the report of the committee at plenary for consideration.

    Hardly had he submitted the report than a member of the committee, Ms Annkio Briggs, requested to tender a minority report, particularly on derivation principle.

    Ms Briggs described herself as a lone voice who endorsed the recommendation to retain the 30 per cent derivation status quo.

    Another delegate, Haliru Bello, urged fellow delegates to note that the conference rules of procedure did not give room for a minority report.

    He said the rule states that decisions could either be reached by a consensus; or, where consensus failed, 70 per cent vote in favour of an item.

    The delegate said the conference should not accept any minority report to avoid creating room for delegates to flood the conference with minority reports.

    Conference Chairman Justice Idris Kutigi (rtd) said Bello’s observation was apt.

    The chairman agreed that the conference rule of procedure did not give room for a minority report.

    He said the committees were asked to reach decision by consensus or 70 per cent vote in favour of an item.

    Justice Kutigi said: “Minority report is unknown to our rule.”

    The chairman ruled that Ms Briggs’ minority report should be accepted but marked “rejected”.

    Most other members agreed and asked Justice Kutigi to disregard the minority report.

    A member, Dr Isaac Osuoka, disagreed.

    He said the conference should do away with “the tyranny of the majority”.

    The delegate insisted that the tyranny of the majority had been the bane of the growth of the country.

    According to him, since the committee failed to achieve consensus on the matter, there should have been a vote to decide the issue.

    Dr Osuoka noted that since there was neither consensus nor a vote on the issue, the conference should allow the minority report.

    The delegate accused the leadership of promoting primordial interests instead of the interest of the country.

    He said: “The right of a member of this conference to present a minority report where necessary should not be taken away under any guise.”

    But Ms Briggs said 50 per cent derivation principle should have been adopted.

    She noted that the question of whether the status quo of 13 per cent derivation should remain or not was not discussed by the committee.

    The delegate insisted that whatever position the conference would take might not be the end of the matter, since the people of Niger Delta had the right to speak on the matter.

    Justice Kutigi threatened to throw her out of the conference room “to allow descent people to continue with deliberations”.

    The delegate ignored him and continued to insist that she must be heard.

    Attah had said the report would generate a lot of interest from among the delegates.

    Also, the Federal Government has granted the National Conference four weeks extension to conclude its work.

    The conference had requested for six weeks’ extension to enable the delegates conclude their deliberations.

  • Politics of derivation and resource control

    Politics of derivation and resource control

    The National Conference was described as another jamboree when it was inaugurated by President Goodluck Jonathan. The inability of delegates to resolve fundamental questions, including derivation and resource control has confirmed the illusion of hope, reports EMMANUEL OLADESU.

    The National Conference has been enveloped in anxiety this week. It started on Monday. After seven hours of closed-door deliberations, the Committee on Devolution of Power emerged without a decision on the twin issues of derivation and resource control. Delegates were taken aback.

    Also, the committee could not resolve the argument and counter-argument for onshore-offshore oil dichotomy. Many delegates have called for its reintroduction in states where minerals are located off the coasts.

    Last week, delegates from the North had spoken in support of a new derivation principle. They said that the 13 per cent should be retained in the constitution. But, delegates from the Southsouth disagreed. They said that the percentage should be jerked up.

    The only consensus reched was that, if the current formula is to be reviewed, it should be done through the Act of Parliament.

    Arguments by delegates from the oil-producing states bordered on the belief that the reintroduction of the obnoxious onshore-offshore oil dichotomy will draw the country backward into chaos.

    Some Southern delegates argued that the demand for the premature scrapping of the Niger Delta Development Commission, the Presidential Amnesty Programme and the Ministry of Niger Delta Affairs could spell doom. They feared that militancy may be revived in the Southsouth.

    The Co-chairman of the Committee, Obong Victor Attah, told reporters that the delegates on the committee had opportunity to articulate their views. He allayed the fear that the final position has been taken.

    Attah said the final decision would not rob any part of the country its rights. He said the committee had adjourned to enable members reflect on the vexed issue, with a view to arriving at rational decisions, based on equity, fairnes and justice.

    Committee members were advised not to take any decision in the direction that would create disequilibrium in the system. They were admonished to think beyond oil and gas as the only mineral resources in the country.

    Nigeria’s leadership role in Africa came up for discussion at the sitting of the Committee of Foreign Affairs and Diaspora Matters.Ambassador Mohammed Isah Aliyu said that the Economic Committee of West African States (ECOWAS) single currency would not benefit to Nigeria because all the French-speaking West African countries are appendages of France. A member said that the Chibok kidnap saga should make the country to reflect on its foreign policy.

    Retired Assistant Inspector General of Police Ibrahim Baba Ahmed suggested that the fight against corruption in the country should begin with the Police. But, he also advocated a better welfare package for the law enforcement agency. He recalled that, as a commissioner and later AIG, he did not have any imprest to his office.

    The committee recommended the establishment of a Foreign Service Commission to coordinate foreign donations and aids into the country.

    At the Committee on Public Service, remunerations and allowances of legislators were the major issues discussed.

    A member described the jumbo pay as legal and moral issues. Another delegate suggested that the Pension Contributory Scheme should be applicable to the legislators.

    The numbers of ministers and advisers for the President was also discussed.The committee recommended the amendment of the portion of the constitution that requires the President to appoint, at least, one minister from each state to read “not more than one minister from each state.” The number of ministers has therefore, been reduced from 42 to 36

    It also recommended the full implementation of the Integrated Personnel Payroll System (IPPS) to include the military, paramilitary, judiciary and the legislature The committee said that state and federal legislators should be on part-time basis, adding that their remunerations should be comparable to other arms of government.

    On budget reform, the committee recommended that projects should have terminal dates. The Millennium Tower and the Lokoja-Abuja road, which have been on-going for about 13 and eight years respectively, were cited as examples. The committee said that project monitoring should be reviewed.

    The committee on Economy, Trade and Investment met to fine-tune the reports of its various sub-committees.

    General Anthony Ukpo (rtd) suggested that government should invest in areas that do not have immediate commercial interest value like the space program. He also suggested that government should strengthen the regulation.

  • Dickson to RMAFC: revisit era of 100 percent derivation

    Bayelsa State Governor Seriake Dickson yesterday lamented injustice in revenue sharing formula and asked the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) to revisit the era of 100 per cent derivation principle.

    He said for Nigeria to practise true fiscal federalism, the era of 100, 50 or 30 per cent derivation formula must be reconsidered by RMAFC.

    The governor spoke in Yenagoa at a three-day Southsouth zonal public hearing on the review of revenue allocation formula organised by the commission.

    Although all the governors in the zone were not present at the event held at the Cultural Centre, they sent representatives.

    The Akwa Ibom State government received commendations for bankrolling the live broadcast of the event.

    Dickson, who was represented by the Secretary to the State Government (SSG), Prof. Edmund Allison-Oguru, recalled that 100 per cent derivation principle formed the basis for revenue sharing when agricultural products were the mainstay of the economy.

    He said such percentage was once given to regions, who produced cocoa, groundnut, cotton and other agricultural products before the discovery of crude oil in commercial quantities.

    Prof. Allison-Oguru said the formula was later reviewed to 50 and 30 per cent, adding that there was no time such regions were paid below 30 per cent.

    Lamenting that the country abandoned agriculture after discovering oil and gas, he said it was only just for the Niger Delta region to enjoy better derivation formula, considering the pains of oil exploration.

    Allison-Oguru said: “It is a well-known fact that the exploration of oil in the Niger Delta region has not only exploited the people of the area but has also made the area toxic, resulting in polluted environment, which has adversely affected the agrarian and subsistent lifestyle of the people.

  • RMAFC chair: Anambra‘ll enjoy derivation if …

    The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has said Anambra will benefit from the oil derivation fund, if the mineral resource from the state contributes to the Federation Account.

    RMAFC Chairman Mr. Elias Mbam spoke yesterday in Asaba, the Delta State capital, at a workshop on Economic Diversification, organised by the commission and the Delta State Government.

    Mbam said though crude oil production had begun in the state, becoming a beneficiary of the monthly allocation, based on the 13 per cent oil derivation, was not “automatic”.

    He said: “The derivation fund is clearly defined in the constitution. The law does not say you must start benefiting when we discover mineral in your place.

    “You only benefit when that mineral resource contributes to the Federation Account and what you benefit is the value of its contribution to the Federation Account. So the existence of a mineral resource does not make Anambra an automatic beneficiary of the 13 per cent derivation fund.”

    On August 30, President Goodluck Jonathan announced the listing of Anambra as an oil producing state.
    The President made the announcement at the inauguration of the first oil refinery in the state, built by Orient Petroleum Resources Plc in Aguleri, Anambra East Local Government Area.

    Following the president’s pronouncement, the Kogi State Government announced that it would also be a stakeholder in the refinery because oil wells that would service the refinery were located in Odeke, Ibaji Local Government Area of the state.

    Mbam said the commission was yet to receive any complaint over the ownership of the oil wells.

    He said: “We have agencies of government charged with the responsibility of ensuring that boundary issues are settled. We have the National Boundary Commission and the Surveyor-General of the Federation, who are charged with the responsibility of delineating boundaries.

    “There is no need to dissipate energy now, because once they start contributing to the Federation Account, the commission will request the boundary commission and the Surveyor-General to go and establish where that oil wells belong.”

  • Akpabio,Uduaghan,Oshiomhole advocate 50 per cent derivation

    Akwa-Ibom State Governor Godswill Akpabio has urged all zones in the federation tap the natural resources available across the country.
    He urged the Federal Government to increase the 13 per cent derivation to 50 per cent in order to develop the Southsouth.
    Akpabio spoke yesterday in Asaba, the Delta State capital, at the advocacy workshop on Economic Diversification and Enhanced Revenue Generation organised by the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC).
    He urged RMAFC to come with a blueprint that would increase the derivation to 50 per cent, as well as policies that would allow the regions develop at their own pace by exploring other sources of revenue outside oil.
    Akpabio said: “We have resources that are untapped, but because of our monolithic economy and over-reliance on oil wealth, we have failed to explore other areas.
    “When there is a reduction in the benchmark for oil, our resources dwindle because we do not have any other source of income. This clearly reflects the urgent need for us to diversify our economy and broaden our revenue base. The decline in the manufacturing sector and others must be addressed urgently.”
    The host, Governor Emmanuel Uduaghan, and Edo State Governor Adams Oshiomhole, represented by his deputy, Mr. Pius Odubu, also emphasised the need to diversify the nation’s economy from oil revenue.
    They hinged their call for an increase of the derivation revenue on the need to urgently address the degradation caused by oil exploration in the Niger Delta.
    Uduaghan, who opened the workshop, said: “We still believe that 50 per cent derivation should come to the region, because of the environmental degradation and poverty in the area.
    “We need to mitigate the effect of oil exploration on our people; we need to clean up the seas and ensure that there are no more environmental damages.
    “This involves a lot of fund and what is coming now is insignificant. Fifty per cent will be considerate. We appeal to our brothers advocating the removal of the on shore/off shore dichotomy that it is a no go area. The matter has been laid to rest for good.”
    Stressing that some states rely so much on the Federal Allocation that they fail to exploit the natural resources in their domain, the governor said: “We only noticed recently that there are oil deposits in Sokoto State because neighbouring countries, such as Chad and Niger, were exploring the resources in Nigeria’s territory. In the 1960s when agriculture used to be the mainstay of the nation’s economy, we hear of the Groundnut Pyramid in the North and the Cocoa House in the West.
    “I think we should start looking at the things each state can do to avoid going to Abuja every month for allocation. We are supposed to develop our infrastructure and make the state economically viable, such that we generate revenue and pay tax to the federal government.
    “We should focus on things that would unite this country and not things that will divide us. I support the 50 per cent derivation.”
    RMAFC Chairman Elias Mbam said the workshop was the third in the series organised by his commission in the six geo-political zones.
    He said the aim was to sensitise the federal, state and local governments and other stakeholders on the urgent need to diversify their respective sources of revenue.
    Mbam said: “It was also envisaged that by organising these workshops on zonal basis, states in each geopolitical zone would explore their peculiar potentials and share experiences on how to develop their resources to generate more revenue.”