Governors of the Niger Delta region, during the week, started mobilizing forces to quell the rising agitation by oil-producing communities for the Federal Government to stop paying 13 per cent derivation fund through state governments.

Leaders of the oil communities in Niger Delta, under the aegis of Oil and Gas Producing Communities of Nigeria, have, in the past few months, led powerful delegations to the Presidency, National Assembly, Revenue Mobilization, Fiscal and Allocation Commission, RMFAC, and other government agencies, campaigning for direct payment of 13 per cent derivation fund to host communities.

Vanguard gathered that the governors were not at ease with the campaign that payment of 13 per cent derivation to state governments was unconstitutional, as well as the allegation that they (governors) misappropriated N7.282 trillion in the last 13 years.

Some of the protesting communities warned that they would shut down oil flow stations in their areas if the Federal Government did not redress the anomaly.

The communities argued that the 13 per cent derivation fund did not belong to the state, as it was not part of the money that should have been credited to the state’s consolidated revenue fund account.

An informed source hinted, yesterday, that the recent outburst by South-South leader, Chief Edwin Clark, during a visit to him by leaders of the group that payment of 13 per cent derivation to state governments was illegal, was a source of concern to the governors, knowing the weight of the opinion of the elder statesman on matters affecting the region.

Jonathan orders audit of oil revenues

Already, the Presidency in response to the agitation, had directed a probe into the increasing complaints and agitation by the communities over alleged misuse of the fund by governors.

Our source said: “President Goodluck Jonathan had directed an audit of all oil revenues, including the 13 per cent derivation fund disbursed through the Federation Account to ascertain the utilisation of the fund.”

In one of the several letters to the RMFAC, the communities said: “Thirteen per cent derivation fund is not part of any consolidated revenue of state governments; it is not part of any state allocation. The fund is a benchmark for revenue allocation for host communities in Nigeria. It is, therefore, illegal to allocate 13 per cent derivation fund through a third party to the host communities.”

NEITI to conduct probe

On the probe by the Federal Government, it was gathered that the Nigeria Extractive Industries Transparency Initiative, NEITI, had been named to conduct the audit.

The purpose of the audit, which is expected to be completed in nine months, is to determine how oil revenues are applied to entities such as Niger Delta Development Commission, Petroleum Trust Fund, and the 13 per cent derivation revenue allocated to some oil producing states.

In addition, the planned audit will determine how other monetary and fiscal transactions in the sectors have been utilised during the period under review.

The development was confirmed by a member of the NEITI Stakeholders Working Group, Mrs. Faith Nwadishi, who disclosed that the planned audit was to ensure that the nine-month timeline set by the Federal Government for the completion of the audit was met and assured of NEITI’s full support for the proposed exercise.

Loud agitation in Delta

The agitation is more vociferous in DeltaState, where Senator Francis Okpozo and former chair of the Delta State Oil Producing Areas Development Commission, DESOPADEC, Chief Wellington Okirika are leading the offensive.

A dependable source told this reporter: “Governor Emmanuel Uduaghan is meeting with some of these leaders on Saturday (tomorrow) in Warri to see how they can iron out their differences, as things will not work out well the way matters are going at the moment.

“Uduaghan is among the first governors in the region to set up an oil commission, which is DESOPADEC to manage the 13 per cent derivation fund. But the truth is that what is remitted to the commission is only 50 per cent of the 13 per cent derivation fund, not the entire 13 per cent that comes from the Federal Government and we are saying that it is unconstitutional.

“Even as we cry in DeltaState that sometimes, the whole 50 per cent does not come to DESOPADEC, in some states of the region, there is no commission at all to manage the 13 per cent derivation fund. Except in Edo, Ondo, Imo and Abia states, where the governors also set up commissions, all the governors just use the money the way they like without challenge from the lawmakers.”

Host communities regain lost voice in Rivers

Investigation by Vanguard showed that in RiversState, the host communities could barely meet, not to talk of confronting the governor, Hon Rotimi Amaechi, on the use of 13 per cent derivation fund.

However, with support from the leadership of the Oil and Gas Producing Communities of Niger Delta, oil communities in the state had found their lost voice. They have joined the campaign for direct payment of 13 per cent derivation to host communities.

In a petition addressed to the RMFAC chair, signed by Chief Henry Okpaks (Rivers), Mr. Wole Abel (Ondo), Mr. Monday Aghaghe (Edo), Mr. Ufot Nkang (Akwa Ibom), Mr. Macpherson Kurobo (Bayelsa) and Chief Willam Igere (Delta), the leaders said: “The 13 per cent derivation fund belongs exclusively to the oil and gas producing communities, which are the sources of derivation.”

Derivation Board

They proposed that a Derivation Board, comprising an executive chairman, secretary and members, including a member from RMAFC, be set up to administer the 13 per cent derivation fund. They added that the chair should rotate among oil and gas producing states every four years.

They stated that the 13 per cent Derivation Fund currently being managed by the state governors in the oil and gas producing states was an aberration, adding that the fund had been managed without regard to the oil and gas producing communities, who are owners.

Understated moves in Edo, Ondo

In EdoState, the commissioner representing the state in the NDDC, believed to be voicing the position of the state government, was quoted recently to have stated that 13 per cent derivation fund could not be managed by host communities because of lack of administrative structure.

He opined that state governments should continue to manage the fund, while in OndoState, there was a subtle move to dissuade the oil communities from pressing ahead with the campaign.

Bayelsa keeps oil communities guessing

However, in BayelsaState, where the oil-producing communities had a rough time with the previous administration, they were yet to read clearly the body language of Governor Seriake Dickson, who has not inaugurated any commission to manage the fund.

Oil communities welcome probe

On the planned audit by NEITI, the leaders called on the organisation to visit the host communities and ascertain the facts on ground.

In a statement signed by William Igere (Delta); Pastor Macpherson Kurobo (Bayelsa); Harry Opaks (Rivers); Saviour James Okon (Akwa Ibom); Princess Nomwen Uhunmwunagho (Edo) and Samuel Ebiwanno (Ondo), they said: “We wish to affirm in very strong terms that any report or audit investigation without physical visit to the communities hosting oil facilities is unacceptable to the communities.

“The state governments, which received this money illegally, used the fund to develop their state capitals and non-oil and gas producing communities, leaving the actual oil and gas producing communities in hunger and penury.”

They stated that the illegal and unconstitutional payment of 13 per cent derivation fund through the state governments had left the actual oil and gas producing communities in abject poverty.

State govts ‘ve no business with 13% derivation — Clark

Chief Clark, whose support for the oil communities caused a stir among the governors, said during the visit to him in Abuja: “The provision in the 1999 constitution is clear, 13 per cent derivation fund stands on its own.

SOURCE: http://www.newsinnigeria.org/2013/01/13-oil-derivation-war.html

THAT'S MAKE A LOT OF SENSE, BUT IN ACTUAL FACT IS PROPER MANAGEMENT OF THE FUNDS,OIL COMMUNITIES MIGHT NOT FEEL THE DIRECT IMPACT IF THERE IS NO GOOD ACCOUNTABILITY AMONG THEM...

Supported

I over concour

What do you expect when the system eliminated Local Govt Councils which is close to the people and the communities.

What we have are rogues doing whatever they like in the state level.

Ђδω can this Be??

So,the Abokis were/are not the ones siphoning the 'Oyel' money after all



#.. Not so Shocking

Right from Adam, it was very clear that the problem of Niger Delta was/is their greedy leaders. Same with every part of Nigeria. But my people will never see that...

Will they manage it well? If yes then I'm in support.

nonsense,even if the money is paid to host communities,it will still be looted by local chairmen and councillors,instead pay the money directly to families residing in the host communities

it is long overdue. Pple are suffering in this host communities. No portable drinking water, no electricity, no gud health care facilty and billions of naira is milked frm her everyday.

Though it is important that the governors be held accountable for monies accrued from derivation fund, the protesting communities will need to tread softly because the Northern law-makers who are trying to stifle the proposed 10% additional revenue to oil bearing communities in the ND in the PIB will use this is an excuse that since the communities are yet to feel the impact of the 13%, there will be no need for an additional 10%!

I was expecting the Niger delta states to have developed far better than the other regions instead the place is a shiithole not because the people don't deserve a better environment to live but for the selfishness of their leader and activities of bukerers which has ruined the environment and the lives of the commoners.

It's left for the the poor people of Niger delta to do away with tribalism and demand justice and accountability from their leaders.the other day during the subsidy palaver when the other regions were calling for government accountability,the Niger deltans were angry at the protesters thinking they were selfish but today,the Niger deltans pay more for petrol than the rest of Nigeria despite the fact that the oil comes from their backyard.

I think this awakening is a good development and they should pursue it to a logical conclusion even if it means taking the federal and state governments to court.enough is enough to government misuse of Niger delta funds.scrap all those ministries and parastatals and let the money goes directly to the people.

Gentlemen,you should have just told us that you want the government to give you a share of the National cake,instead of making noise.are you truly fighting for the people or will you be able to say NO when the governor offers you compensation

In delta state,the money meant for dis oil communities have been looted by this present administration,nothing physical on ground to show,d governor is busy making noise in media house without doing anything. I support their claim 200%

This nine months audit period to me looks so long and a time wasting strategy.

That means during the nine months audit period the 13% derivation funds still goes to the governors.

Hmmm. Let's see how this movie ends.

[img]http://learnweek.com/?r=trimmy[/img] kindaa Of [img]http://learnweek.com/?r=agbeniga[/img]

I concur with the position of Clark, the governors have no business with oil derivation allocation, the money is meant for host communities, not State and it is wrong for the money to be lumped into a consolidated account.

The utter neglect of host communities , with next to nothing level of development is a testimony to the fact that the current system is not working.

There's a serious need to appraise the utilization of oil derivation so far, so that the citizens of oil hosting communities can eat the fruit of their lands.

This luminates a broader point of how shambolic our fedralism is!! Stae govournors see themeselves a lords over their fellow elected local government chairmen. They sack them at will and control their budget. It's wrong. In rivers state, bonny island is the oil capital of nigeria home to the largest lng plant in africa, bonny oil terminal,etc. But the current governour has just ignored the island, i don't know what he has against them but the island through it's "local government" has also ignored the stae amd used it's opportunity well. Today bonny island is the only place in nigeria with uninterrupted power supply. Good roads, and other nice things. The national assembly needs to address this.

We need Revolution in this country. Until we chase out all the thieves at the corridor of power, not only in the Niger Delta but all over the country, there may not be any meaningful development.
Third to comment sha.

lets face d facts, most of our oil comes from d sea, so in d real sense of it there are no host communities.

This is a right move at d right direction. To be a government does not mean evry money must go to d govt's account. 13% oil derivation shldnt go near govt's pocket. D hosting community shld set credible teams to manage thier fund. Pple in state govt's position know nothing dan looting any available money dat enters thier hand. Am frm one of d communities in akwa ibom and i know what am saying. U have nothing, i repeat nothing to show for the 13%. Is better for d people of d hosting communities to misuse d fund dan d fund still finding itself in d hands of d state govnors who hav had alot to loot already. It's pathetically unfair.

Govt or state govnors shldnt claim to be good managers for us in dis case.

ENOUGH IS ENOUGH.

na why men dey battle for these sits, kai money dey dere ooo

Early days of boko haram type revolt in the niger delta. Let us see whether they are going to use jtf to crush them.

mu2sa2: Early days of boko haram type revolt in the niger delta.

You have deep insight.

Lack of administrative structure won't allow d oil communities manage d money well.

lacasa: Ђδω can this Be??

So,the Abokis were/are not the ones siphoning the 'Oyel' money after all



#.. Not so Shocking

Bro, what happened to the remaining 87%??

I totally agree with clark,but the host communities should only have acess to 13percent of the crude oil exploited from their land, the crude oil found in Nigeria territorial waters will continue to be shared like it's done now. This arrangement would benefit oil producing communities like Ogba,Ndoni,Egbema and Obigbo.

Apart from Rivers state where all the lgas are oil producing,i don't see how this arrangement will help other oil producing states where most of the lgas are non oil producing. This will enrich the oil producing lgas to the detriment of the non oil producing ones,and it won't be long before we have a mini nigeria situation in those states, oh dear.

Wahala dey ooo. foul yashi won open!!!!..SS eye don open... The start of new dawn in SS....Let i forget , we should not forget to blow the yashi of Governors , Chairmen and councilors in our area, they all collect billions every months from FAC account for development purposes...where is the development? let call them for accountability....

kim77: Wahala dey ooo. foul yashi won open!!!!..SS eye don open... The start of new dawn in SS....Let i forget , we should not forget to blow the yashi of Governors , Chairmen and councilors in our area, they all collect billions every months from FAC account for development purposes...where is the development? let call them for accountability....

I hope your immediate family have a claim to an oil producing land,if not,i don't see how this policy will benefit u,as the oil producing and non-producing sh.it is likely to be watered down to family level at this rate. The era when individuals from families who have no claim to any oil producing lands will be shouting 'our' oyel,might be coming to an end. Soon we will know who are the real owners of the oyel. *grins*