By Emma Amaize, Regional Editor, South-South
Stirring the hornet’s nest

WHEN the Chairman of the Northern Governors Forum, Alhaji Babaginda Aliyu , last Thursday, at the inauguration of the Advisory Council of Sir Ahmadu Bello Memorial Foundation, in Abuja called for a review of the federal revenue formula on grounds that the obtainable modus operandi was unfavorable to the northern states, it was palpable that the call would stir up the hornet’s nest.

He had submitted and very powerfully too, to the admiration of his fellow northerners , that a situation where a state like Niger got between N4.2 billion and N4.5 billion as monthly allocation, while some other states received 20 times the amount was unfair.

Governor Babaginda queried the basis of the allocation to the oil states, saying, “For example, there are oil wells that were over 200 kilometers away of the shore of the country. Those ones before the passage of law by the National Assembly were supposed to be oil wells for the whole country.



“But now, they have been made to be given to the contiguous states in addition to 13 per cent derivation. So if you look at that, you will say that it will not serve everybody well if certain parts of the country are not doing well, while some parts are doing exceptionally well. So, the pressure will continue until we are able to find a solution.”

Babaginda had hardly stepped down from the podium in Abuja when angry South-Southerners and other Nigerians, who read the views of the Central Bank Governor, Alhaji Lamido Sanusi, in Financial Times of London , last month, that uneven distribution of the nation’s wealth was responsible for the violence by the Islamic sect, Boko Haram, started spitting fire.

Fury

Anger is still soaking over the call by the northern governors to reduce allocation to oil states up till the time of this report. Niger- Delta governor, leaders, Senators members of the House Representatives , including former Minister of Information, Prof. Sam Oyovbaire, Prof. B.I.C. Ijomah, and leader of the Niger Delta Peoples Volunteers Force, NDPVF, Alhaji Mujahid Dokubo-Asari, accused the Northern leaders of provocation, insensibility and distraction from the Boko Haram insurgency in the north.

Among the Senators from the region who responded to the development yesterday were Senators Ikirikpo Claver, PDP, Bayelsa East, Enyinniya Abaribe, PDP Abia South, Senator Lokpobiri Heineken, PDP, Bayelsa West, Senator Solomon Ita Enang, PDP, Akwa Ibom North East and Senator Ifeanyi Okowa, PDP, Delta North.

Some South-South leaders, however, welcomed the call as perhaps a possible opportunity for the enactment of the fiscal federalism that has been also canvassed by elements in the South-South region.

Governor Emmanuel Uduaghan of Delta State who spoke to Saturday Vanguard said, “Review of revenue allocation has to be done under the law, the law is that land and water are part of a state and so, the oil and gas resources found 200 kilometers away is inside the state that it is found”.

“There is no way you can say that 200 Isobath does not belong to state. They (northern governors) are entitled to make request for review of revenue allocation formula, but to say that those oil wells do not belong to a state is unacceptable”, he added.

Warning that the north should not see the people of the South-South as fools, Senator Claver who wondered why northern leaders have bypassed the issue of Boko Haram to focus on the oil proceeds to the oil producing states said: “They should not see us as fools because Jonathan is the president now, they want to destabilize him and the government with whatever means. How many argued when they had 50 per cent from groundnuts and cocoa?

“As a Senator representing an oil producing state, I believe that the Niger Delta States are presently receiving less than they should receive because they suffer the degradation of their environment and subsequent loss of income earnings due to these oil prospecting activities. So rather than talk about reduction, we should talk about increasing their share through a change in the revenue allocation formula.”

Describing the call as unthinkable, Senator Lokpobiri said: “The problem of Nigeria today is that successive governments deviated from the true structure that was agreed by our nationalists before independence. Every state has its own resources, everyone should be thinking of developing sectors in their states with a view to raising revenue. The people of the Niger Delta suffering the environmental hazards, no one is talking about that; what is good for the goose is good for the gander, it should be increased to 50 per cent.”

In his reaction, Senator Enang, PDP, described the call as insensitive, warning that the north should not wake the people of the South-South to revisit issues that had been considered settled in the Nigerian federation.

Enang who is the Chairman, Senate Committee on Rules and Business called for the amendment of the constitution that will reflect true fiscal federalism that would allow the states to exploit their resources and pay tax to the federal government.

He said: “Let them consider the dual carriage ways in the north and tell us how much of these are in the Niger Delta and other parts of the country. How much has been spent on FCT alone and where is the money from? Let them consider how much is invested in Kaduna State alone and how much has been invested in oil producing States, how much of oil money in river basins that is in the North can you find in the South?

Those who are making this call now want to wake up the people of Niger Delta and the South on issues we said should be allowed to rest so that our children and youths will not be reminded of concessions we made just for national unity, what is the value of NNPC towers, PTDF in the north, is there such in the Niger Delta?”

Senator Ifeanyi Okowa on his part described the call as an insult. He said: “I think it is not right to talk in that manner. The constitution in the first instance said nothing less than 13 percent should be given to regions where resources are being sourced from and the Federal Government is currently implementing that. Any attempt to take it below 13 percent rather than move it to 25 percent will be very insulting to the Niger Delta people.

“Northern leaders can say what they like about the revenue to the Niger Delta, but they should know that the Niger Delta has made more sacrifices to Nigeria than any other region. And where this resource is coming from, most of the villages are not developed. You need to go and see how people are suffering in the Niger Delta.”

The call was also flayed by members of the House of Representatives from the region yesterday. Rep Daniel Reyenieju, Delta State, and Rep. Sokonte Davies, PDP Rivers, in condemning the call said it could well be an opportunity for the restructuring of the country.

Reyenjeju said: “Of course, if we must dialogue if that is one of the issues that they must bring to the table, if all the states of the federation decide to bring the issue of revenue to collect more from the centre well and good let them come.”

“What we need is restructuring and not revenue allocation which will increase anybody’s share. With restructuring, everybody will be happy and we shall then agree on what comes to the centre. That itself will reduce the attraction to control central power,” Davies said.

Ex-Information minister, Prof Oyovbaire told Saturday Vanguard: “It is a pity that in 2012 the northern governors are proffering this kind of argument. They have refused to tackle the issue of underdevelopment, which they identified years ago, and instead of addressing the matter squarely, they want funds that do not belong to them.”

He said the issue of onshore/off shore derivation was a settled matter and wondered why northern governors were resurrecting it. Oyovbaire said: “The northern governors have simply re-opened the issue of restructuring of the country. I think, however, that their call is a strategy of provocation because we have been arguing that 13 per cent derivation is too small, yet they are saying that it is too high. I feel sad that we are going to all these again”.

Erudite academic, Prof Ijomah in his reaction said: “Well, if they want a review of the revenue allocation formula, it should be in the direction of what northerners wanted before independence. It is their resolution that revenue should be collected by regional governments. That is the way we in the South-South want it. We should return to pre-independence situation, that is fiscal federalism. No review outside that will be acceptable to us.

“The review should be that each state should collect its revenue and pay royalty to the central government. This is the Aburi agreement and the basis of Nigeria’s unity. Abubakar Tafewa Balewa and other northern leaders supported this, otherwise, there is no basis for the present unity in the country.”

Dokubo-Asari

Niger-Delta activist, Alhaji Dokubo-Asari, who spoke to Saturday Vanguard from overseas, said: “The northern governors should go and look for their own resources because we want 100 per cent. They should stop thinking that they (North) will continue to intimidate us. They don’t have right to our oil resource; they should look for their own. We are demanding 100 per cent of our resources because when it was groundnut and other things in the past, they did not use the money to develop the South-South, it was only the north that they developed.”

Former President of Ijaw National Congress, INC, Prof Kimse Okoko in a chat with Saturday Vanguard described as unacceptable the position of the Northern Governors calling for review of the country’s revenue allocation formula on grounds that it was allegedly skewed in favour of oil states. He said their position had further reinforced the call for a Sovereign National Conference and the urgent need to amend the 1999 Constitution in favour of true federalism in the country.

Coordinator of the South-South Elements Progressive Union, SSEPU, Joseph Ambakederimo stated: “The Northern Governors call is not only parochial but smacks of insensitivity. When we are still agitating for resource control which we are prepared to fight to achieve with the last drop of our blood, they are talking of sharing of money. Whose money do they want to continue to share?

Founding Director, Ijaw Council for Human Rights, ICHR, Patterson Ogon, asserted: “The call of the Northern governors would have made meaning if they, in their wisdom had advanced a review of revenue sharing formula on the basis of revenue generation, a fiscal federalism wherein the component units are statutorily empowered to explore and develop their natural and human endowments and pay tax to the centre.”

Former chairman of the Traditional Rulers of Oil Producing Communities Organization of Nigeria, TROMPCON, HRM, Charles Ayemi-Botu in his own reaction yesterday said: “What the South-South is for asking for is the implementation of true fiscal federalism”, pointing out that it was a misnomer for northern governors to think that oil revenue would be shared equally.

His words: “It is an insult on injury for them to think in that way or make such suggestion.”

He said TROMPCON had been crying for a long time that the Revenue Mobilization, Allocation and Fiscal Commission, should begin the implementation of true fiscal federalism, and said the call for the review of the formula by northern governors should form the basis of action.

“True fiscal federalism means that whatever resources are found in your place, you will take and pay tax to the Federal Government. This is what is happening in the United States of America where we copied our presidential system of government. Derivation is paid by states to the federal. We are not against the review of the revenue formula; it is foolhardy for them to think that revenue that is supposed to come to the oil states where the resources will be shared equally with them. In fact, I am even surprised that they are talking about oil revenue at a time they should be concerned with how to arrest the Boko Haram that is on rampage in the north.”

The royal father asserted: “They forgot what when agronomy was the main stay of the economy of the country, they were collecting 50 per cent derivation and now that it is oil, they are angry that we are collecting 13 per cent, which is not enough. It is not up to 50 per cent they were collecting before. We have been collecting 13 per cent since 1994 and we want a review, we want to start collecting 100 per cent in the spirit of true fiscal federalism and pay tax to the federal government, this is what it is supposed to be.”

On his part, former acting Managing Director, Niger Delta Development Commission, NDDC and Executive Director Finance and Administration, Pastor Power Aginighan, said the call by the northern leaders was inconsistent with reports of the various panels that had looked into the problems of the region and recommended upward review of resources to the area.

Aginighan who noted that the 13 percent derivation to the region was still not appreciable wondered what was happening to solid minerals reportedly mined from other sections of the country. He said it was a paradox that a Ministry of Solid Mineral was being funded by proceeds from oil in the Niger Delta region yet no revenue from the mineral goes into the federation account.

A front line activist in the region, Dr Sofiri Peterside, said the call by the northern leaders was not realisable. According to him, when agriculture was the mainstay of the nation’s economy they had the lion share.

Also a chieftain of the Peoples Democratic Party in Rivers State, Prince Tonye Princewill, said if there should be any review of the allocation principles then it should be to raise what accrues to the Niger Delta region. He said this would help tackle environmental challenges and pollution occasioned by oil exploration in the area.

“If any review should be done it should be on how more fund should be credited to the region in order not to destroy the bird that lays the golden egg, to address seriously the damage of lack of development, today the future of the South South is bleak as experts have predicted that in near future natural disasters like earthquake, flood will be the lot of the region.”.

North reiterates stand

The war drum, nevertheless, boomed louder as the foremost northern socio-political group, Arewa Consultative Forum, ACF, Coalition of Concerned Northerners and other northern groups threw their weight behind their governors. Its publicity secretary, Anthony Sani asked, “What does your sense of justice tell you when an oil producing state collects as much as N24 billion per month from the Federation Account, while a non-oil producing state collects about N4 billion or even less per month? Does offshore exploration also degrade the farming environment in the Niger-Delta?”

Governor Babaginda also reiterated the stand of the northern governors, four days after, saying in a lecture he delivered in Lagos that the country’s resources was a common patrimony and should be shared on that basis.

Afenifere’s counsel

Yoruba socio-political group, Afenifere described the demand as divisive. According to Afenfere leader, Pa Reuben Fasoranti, “The ACF and northern governors should not use the backdoor to alter the current formula.

His words, “They should not go through the backdoor to change the current status-quo of revenue sharing because that would be inequitable and could be counter -productive”.

“What they (ACF) should do is to assist the governors to look inwards and see how they could improve the internally generated revenue of their respective states by tapping into natural resources and the agricultural products in their areas.”

In the interest of peace and good governance, the Afenifere leader, who narrated how Nigeria’s post-independence leaders, the Sarduana of Sokoto, the late Sir Ahmadu Bello, the late Chief Obafemi Awolowo and the late Dr. Nnamdi Azikiwe developed the resources in their various regions, said, “ They should leave the allocation of the oil-producing states that are currently benefitting from the 13 per cent derivation, as the oil producing states have every constitutional right to enjoy it”.

S-South fires back

Prominent South-South leaders, a former governor and ex-militants in the region, took up ACF and northern governors on Thursday, saying they were either uninformed, fishing for trouble or have deliberately set out to provoke the South-South.

Citing the axiom, “Seeing is believing”, the South-South leaders dared the northern leaders to undertake a tour of the riverside oil communities of the Niger-Delta by boat to see the difficult terrain, degradation and pollution to fully realize the implication of their demand.

They said it was well known that the South-South had remained consistent in their quest, over the years, for a review of the revenue allocation formula on grounds that the 13 per cent derivation to oil states was insufficient, and so, for anybody to say that 13 per cent should be further slashed was insulting.

The leaders, among them, the first civilian governor of Edo state, Chief John Odigie-Oyegun; former Minister of State for Education, Olorogun Kenneth Gbagi; veteran politician, Senator Francis Okpozo; ex-militant leader, High Chief Government Ekpemupolo, alias Tompolo, and others said the minimum acceptable standard by the South-South in any review of the revenue formula was a return to fiscal federalism.

They said that after breathing the gas flares and seeing the poverty of the people, there is no doubt that the northern governors and other persons thinking like them, would come to an inescapable conclusion that they had no locus to ask for equal sharing of oil revenue with those that live daily with the torture of oil exploration and exploitation.

The South-South leaders said under fiscal federalism in a federal state, which the country pretends to be practising, the federating states or units control their resources and pay tax to the federal government.

[b]According to them, “this was the practice in this country when cocoa, groundnut, palm oil and cocoa were the mainstay of the economy. The East, North and West collected 50 per cent as derivation for these agricultural products respectively and the South-South was almost starved to death because oil had not been found then”.

According to Chief Odigie-Oyegun, “We have to sit down and talk on how we want this country to be. Let us come to the table and talk, we should all meet.

“The matter is not northern governors throwing stones that they want revenue formula to be reviewed without sitting down to look at the issues very critically. Did anybody tell them that we in the South-South don’t want the revenue formula to be reviewed? We want it and it must be in excess of what it is now, not downwards for oil states.

“The truth is that unless the fundamental issues are addressed, we will keep finding ourselves in the kind of situation where people just get up and say things just like the northern governors had just done without hitting the nail on the head”, he said.

For Olorogun Gbagi, “the call was a continuation of the deliberate design of northern governors to foment trouble in the country. What the South-South wants is for us to control our resources and pay tax to the Federal Government as it was done in the time of cocoa and groundnut.

“Their call of sharing oil revenue is borne out of laziness, they cannot say that oil resources in the south-south do not belong to the owners of the communities”, he added.

Gbagi said the northern governors should stop looking for trouble and respect the sovereignty of the country for the nation to move forward.

Senator Okpozo spoke furiously to Saturday Vanguard on phone over the matter, saying: “Even during the colonial administration up to the time of independence, until oil was discovered, the revenue formula that existed was 50 per cent derivation for the entire nation and 50 per cent for the producing regions”.

He said though the formula did not last for a very long time, the north, west and east utilized their 50 per cent derivation to develop their areas to the utter disadvantage of the south-south, which had no resources then.

“When you look at western region, you see the Cocoa House, Western Nigeria Broadcasting Corporation and other joint edifices put up from the proceeds of derivation; you all see the Ahmadu Bello University and other projects in the north, all from their derivation money, so also the late Dr. Nnamdi Azikiwe tried to do in the east with the little money that came from palm oil and cocoa”, he said.

Senator Okpozo said: “I have no doubt that the northern governors are not well informed about the plight of the people in the Niger-Delta; they should be taken on a tour of the terrible terrain to see the sufferings of the people, let them see the gas flaring, let them see the erosion that is eating away the communities, the water the people are drinking, the houses they are living in, the grandeur of the oil companies exploring their oil and let me know if they will not ask for increased revenue to oil states”.[/b]

Ex-militant leader and one of the founders of the Movement for the Emancipation of the Niger-Delta, Government Ekpemupolo told Vanguard , yesterday, “since the country is practicing a federal system of government, what it needs is true fiscal federalism, where the component units will own the resources in their territory and pay tax to the central government”.

He said: “Nobody is depriving the north of its resources, they have solid minerals, they should own their resources and pay tax to the federal government just like other federating units, but a situation where the south-south is to be deprived of its derivation is not acceptable. This is the kind of injustice we fought against and the Nigerian state should avoid it. We want fairness and equity for everybody as a nation”. Hon Patrick

Obahiaghon, aka, Igodomigodo, in an email message to Saturday Vanguard said: “It’s with maniacal bewilderment that I received the renewed onslaught by most Northern governors against the 13 per cent derivation revenue funds accruable to the south-south states, which in and by itself has constitutional imprimatur.”




“I must say, however, that the debate is quite salubrious coming at a time when some of us are saying that this country must peregrinate the trajectory of a national conference to resolve once and for all our unsettled issues in this country.”

“The unprovoked and scabrous assault should offer us the opportunity to examine the economic and jurisprudential anchorage of our fiscal federalism and other related matters”, he stated.

Battle continues as Jonathan studies development

From the tone of the attacks and counter-attacks over review of the federal revenue formula, the battle has just started as Saturday Vanguard the north had decided to continue mount pressure on until the sharing indices are reviewed in its favour.

However, President Goodluck Jonathan is said to be monitoring the debate over the review or otherwise of the revenue allocation formula with a view to knowing what steps to take to avert a national crisis.

A source the Vice President, Architect Namadi Sambo may be asked to call the northern governors to order as the manner they were going about the matter smacks of a premeditated agenda to cause hullabaloo.

Saturday Vanguard also gathered that some members of the House of Representatives and Senate were already thinking of raising the matter on the floor of the National Assembly to douse tension, while power brokers in the Presidency are working on a political solution to resolve the impasse.




http://www.vanguardngr.com/2012/03/derivation-formula-north-dares-s-south/

No , they should give them everything cos of boko haram

The Yorubas do believe their must be a review of the way the federation sharing formula is. I do not believe any Yoruba leader hold any other opinion.  The sharing formula is to the disadvantage of the Yoruba people too. When I read the nonsense that Yorubas are against a review. I knew that there must be a lie involve. Yorubas are for the review for a change of the allocation. 

There are more than 200 companies in Nigeria which are mining for minerals in Nigeria, but only Jonathan Goodluck people get paid for 13% derivation , even when the law clearly state , all minerals in Nigeria.  there are mining companies in the north, but they dont get 13% derivation.   Limestone is a mineral. Yorubas are the largest producer of limestone in Nigeria. And since 2000 , the nigeria govt have not paid  derivation to others. just jonathan people. The nigeria govt own about N1 trillion  which must be deducted from rivers, akwa ibom , bayelsa, imo state. 

  Akwa Ibom state is been over paid for oil derivation. River state , bayelsa is been over paid for Oil derivation. Abia state has no oil.

delta state, ondo state and Cross river state are  been under paid for derivation.

When you have a situation like this you review the law.

There is a need to remove 13% derivation from the constitution.  And also a need to remove Value added taxes of 5%.  State  tax of 13% solve this.  That way oil producing state can still get 13% for oil , now not as derivation but as state taxes.  And this state tax , allow north state to also collect 13% from all transaction in their area , from PHCN to Globacom to zenith bank, MTN etc and even to the man selling Konu or fura on the street.

Now does this affect the price of goods and services in Nigeria. It is not expected to affect the price. You see that is the reason, you cancel Vat. Vat is already 5%,   13-5 = 8%  ,  So the different is 8%. It works like vat but now, only state can collect it directly from people or companies. And not the federal govt.


You can not have development in Nigeria, if federal govt keep on collecting taxes. It is not possible to have development in Nigeria with a strong Abuja. when you continue with a strong abuja. What it means is that people in zamfara , borno, Sokoto, zaria, kebbi are going to continue to suffer. And with the level of poverty in Nigeria. It is high. You allow zamfara, borno, sokoto, zaria, kebbi and other state to collect all of their taxes. This will reduce poverty in most of this area.  Te north have tried strong abuja for 40 years. It as only lead to poverty in the north and no development.

Even if you claim people steal. If the governor of kano state or borno steal the money, is he not going to spend the money in kano or borno state, build houses for himself that people in kano can use. One day, he will die and the properties he stole become the properties of the people. But with strong abuja, that money is ship to imo state  for the people of imo state to enjoy it.

The north have to block and ask that state collect all taxes in Nigeria, that way their money will be send to bayelsa state or imo state. The north pays PHCN bill but they send the money to abuja,  which is forward to imo state .  When state collect taxes, i will see how this will happen.

the issue should not be about revenue sharing but that the North must keep all of its state and collect it themself. And not the federal govt. This is the way to develop nigeria. strong abuja means weak sokoto, weak kano and weak borno.  North must collect all of its taxes by themself from MTN, globacom, zenith bank etc  they do not need the federal govt to collect it for them. The north is old enough to collect its tax.