Please people in the house, can someone shade some light on exactly what the 13% oil derivation objectives are?

I came across this old news item and i thought that and some other reason must be why we are were we are today.

The 13% is meant to take care of communities were drilling, exploration activities take place or communities were pipeline pass through

But most of the governors hav been using such moneys to build new government houses, stadiums and other suchthings in state capitals while completely ignoring the
Host communities of oil exploration activities

EKET (AKWA IBOM) – Oil and Gas Communities Rights Advocacy centre (OGCRAC), NGO, has faulted the use of derivation funds accruing to Akwa Ibom to develop other parts of the state.

Bassey Nkanang, Executive Director of the NGO, said in an interview with newsmen in Eket that the neglect of oil communities was not justified.

Nkanang was reacting to comments made by Mr. Elias Mbam, Chairman, Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), on the neglect of oil communities by state governments benefiting from derivation funds.

OGCRAC is an Eket-based NGO focused on community development by encouraging participation of oil communities in the oil sector.

He said the principle of derivation was to ensure that communities that were impacted on by oil exploitation are reinstated or taken care of by the special fund.

He explained that the fund was expected to be used for issues such as ecological problems arising from oil exploitation.

It is a misnomer to use derivation money to develop or carry out projects in every part of the state, especially areas that have nothing to do with oil production,’’ Nkanag stated.

The executive director appealed to Akwa Ibom government to pay attention to the development needs of the coastal communities in line with the derivation policy of the Federal Government.

He noted that the communities suffer more from the negative effects of the oil production.

Our position is that the government should ensure that this is corrected as, very soon, we may have no reason to restrain ourselves from taking up a legal challenge over the continuous use of derivation money for purposes that were not intended.

The oil-producing communities have continued to bear extra brunt of oil exploration and there has been a near total neglect of the communities by the oil companies.

It will amount to double jeopardy if government also receive money meant to develop the oil communities and utilize it for prestige projects that have no bearing on the wellbeing of the communities.’’

It will be recalled that Mbam, chairman of RMAFC, recently criticized governors of the Niger Delta region for using derivation funds to develop state capitals to the detriment of oil communities.

Governor. Godswill Akpabio of Akwa-Ibom had pledged to fast track the development of Akwa Ibom oil communities during his re-election campaign prior to the 2011 general election.

www.osundefender.org/2012/11/06/akwa-ibom-ngo-faults-use-of-deeivation-funds/