The Ondo State Oil Producing Areas Development Commission (OSOPADEC) has called for an increase in derivation allocation from the current 40per cent to 55per cent to enable the commission adequately address the developmental needs of the oil-bearing communities in the state.
Its Chairman, Biyi Poroye, made the demand at the flag-off of the Commission’s 2023/2024 Students’ Scholarship and Bursary Awards held yesterday in Akure, the state capital.
He argued that the current 40 per cent derivation allocation has remained stagnant since 2004 and is no longer sufficient to meet present economic realities.
“If you spend N100 million on a road construction on the upland, you will spend at least double that in the mandate areas. Since 2004, it has remained 40 per cent with no increment.
If we are asking for just 55 per cent today, I think it is long overdue,” he said.
The OSOPADEC boss also stressed that the development in oil-producing riverine communities costs far more than projects executed on the upland.
Poroye decried the poor state of OSOPADEC facilities and staff welfare despite years of derivation funding, stressing that improved funding is crucial to attract international development partners and deliver tangible progress to the riverine communities.
“We need more than 55 per cent, but if the government gives us 55 per cent, we’ll clap for him. The people of the mandate areas will be happy. Look at our environment. Even OSOPADEC offices don’t reflect where derivation money is being spent. Many units lack basic furniture.
“How will international agencies partner with us when such essentials are missing? Since assuming office two months ago, we have been working to improve staff welfare and productivity,” he said.
He appealed to the state government and international partners to support OSOPADEC, stressing that improved funding is crucial to transforming the lives of residents in oil-producing communities.
While appreciating Governor Lucky Aiyedatiwa for his administration’s support for OSOPADEC, Poroye lauded his government for the timely release of funds for the 2023/2024 cycle of the scholarship and bursary award.
He revealed that a total of 4,837 qualified students from the oil producing communities are to benefit from the scholarship and bursary scheme.
“Today, we commence the 2023/2024 cycle with utmost promptness and transparency, making it the fastest approval and release done by any Governor since the inception of the scheme in 2004, with a firm assurance that the 2024/2025 bursary will equally be paid without delay. Kudos to Mr. Governor for this impressive feat.
“Last year alone, over 5,000 students benefitted from this scheme. This year, a total of 4,837 qualified students have been approved to benefit, with a total sum of ₦286,700,000.00 earmarked for disbursement,” he said.
Speaking on the occasion, the wife of the governor, Mrs Oluwaseun Aiyedatiwa, urged the beneficiary students to be diligent, focused, and committed to their studies.
“These efforts are anchored on the belief that education is the bedrock of sustainable development and the surest pathway to lifting families and communities out of poverty,” she said.
She explained that the Aiyedatiwa’s administration, through OSOPADEC and the state ministry of education, science, and technology, is investing heavily in the renovation and reconstruction of public schools and supplying textbooks and learning materials.
She said: “As you receive this support, remain diligent, focused, and committed to excellence. Remember that Ondo State believes in you and is investing in your potential to become tomorrow’s leaders, innovators, and change-makers.”
