We should applaud the government for finally introducing fairness into revenue allocation. This a first step in the right direction. This step, coupled by a comprehensive Amnesty program for the Boko Haram will go a long way in restoring peace and prosperity in our dear country.

I would actually support a back payment because the section 162 (2) of the constitution stipulates that 13% allocation applies to ANY natural resource. The Northern states have been shortchanged all along and the injustice must be rectified. Kudos to GEJ for being proactive in this case - I suppose he saw the handwriting on the wall that the game is up.

As violence continues to rock parts of the North, the Federal Government may have opted to appease some northern states with the payment of 13 per cent derivation on solid minerals with immediate effect.

A competent source told Vanguard that government was worried about rising insecurity in the northern part of the country with vociferous leaders of the north blaming the situation on poverty and inequality arising from alleged lopsided revenue allocation against them.

The source said President Goodluck Jonathan was considering various measures, which include the immediate payment of the 13 per cent derivation to solid mineral-bearing states, a preserve hitherto enjoyed by the nine oil producing states of Akwa Ibom, Bayelsa, Cross River, Edo, Rivers, Delta, Imo, Abia and Ondo since the inception of democratic rule in 1999.

It was learnt that government’s decision to pay the money was an indirect way of stemming the growing discontent and violence in that part of the country.

The Federal Government has been paying the derivation fund, which runs into trillions of Naira to only the nine oil-bearing states.

Payment to commence next month

But Chairman, Revenue Mobilisation, Allocation and Fiscal Commission, RMFAC, Mr. Elias Mbam, claimed in an exclusive interview that the payment, which is to commence next month, has no political motive.

Mbam, an engineer, made it clear that the decision to extend the payment to solid mineral states was in obedience to the relevant section of the Nigerian constitution.

The chairman said: “The payment is a constitutional matter, which states that derivation should not be less than 13 per cent and derivation is not limited to oil and gas. This also includes all other mineral resources.

“If you have minerals in your state and it is developed and it generates revenue into the federation account, you are entitled to 13 per cent of what is paid into the federation account.”

The chairman, who did not, however, list the benefitting states and how much would be shared to them, said the commission would also not be drawn into agitation by some states for a review of the revenue allocation formula to give them more money.

Section 162 (2) of the Constitution of Nigeria states: “The principles of derivation shall be constantly reflected in any approved formula as being not less than 13 per cent of the revenue accruing to the Federation Account directly from any natural resource.”


Read The Rest Here

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TO KEEP NIGERIA ONE IS A TASK THAT MUST BE DONE

Crap, sir. It simply implies that you need to get your states producing minerals to recieve the 13% derivation.
My broda, sense pass sense.

You people shouted for 13%, now you have it, just that you have to put your dusty arses to work. Lol!

Beaf: Crap, sir. It simply implies that you need to get your states producing minerals to recieve the 13% derivation.
My broda, sense pass sense.

You people shouted for 13%, now you have it, just that you have to put your dusty arses to work. Lol!

Let see how you will stop the payments to the states when they commence, with immediate effect, as ordered. You can continue to wallow in delusions all you want. I told you only last week that justice and equity must be introduced to revenue allocation and your response was to call me and others parasites. Your superiors do not share your views. Many states have been short changed for years and payments should actually be retroactive.

Next in line is a comprehensive BH amnesty deal, followed by a complete reexamination and recomputation of the allocation formula. Insha Allah, our country shall be great once again.

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TO KEEP NIGERIA ONE IS A TASK THAT MUST BE DONE

So what happens to VAT and other taxes.

Enugu produces coal and limestone, ebonyi produces limestone. So does that mean that they will shape in the largesse? Besides the sum in question is rather small

Enugu produces coal and limestone, ebonyi produces limestone. So does that mean that they will partake in the largesse? Besides the sum in question is rather small

abouzaid: Enugu produces coal and limestone, ebonyi produces limestone. So does that mean that they will partake in the largesse? Besides the sum in question is rather small

We'll have to see how the 13% derivation is implemented going forward. By the time every state with revenue generating natural resource is accounted for as required by the constitution, the remaining of the 13% shared among the oil states would have been reduced significantly.

If some of the natural resources produced in Enugu and Ebonyi generate income for the nation, they should receive a portion of the 13%. I think they should also be paid in arreas because they had been denied this allocation for decades.

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TO KEEP NIGERIA ONE IS A TASK THAT MUST BE DONE

If you have minerals in your state and it is developed and it generates revenue into the federation account, you are entitled to 13 per cent of what is paid into the federation account.”

developed by who, what if the FG fails to tap into a recourse thats it solely within its powers?

They should have shouted for 95%.

Dumbazz Oloshichukwu would have granted it to them. Chaiii!!!

I'm expecting another ND militant demand for amnesty.

Ileke-IdI:
They should have shouted for 95%.

Dumbazz Oloshichukwu would have granted it to them. Chaiii!!!

I'm expecting another ND militant demand for amnesty.

In a way, you are right. Every state should have 75%+ derivation of the resources they produce, no?

ndu_chucks:



Next in line is a comprehensive BH amnesty deal, followed by a complete reexamination and recomputation of the allocation formula. Insha Allah, our country shall be great once again.

Some nightmares only occur on Elm street. This will not happen, the payment is the due of the states as I understand it AND includes states in the south who equally have solid minerals, so more for US ALL.

this step is long overdue

Ileke-IdI:
They should have shouted for 95%.

Dumbazz Oloshichukwu would have granted it to them. Chaiii!!!


I'm expecting another ND militant demand for amnesty.

men i have always had it in mind that this guy will sell us

cocoduck: men i have always had it in mind that this guy will sell us

This is not a sellout, it will start correcting the unjust distribution of the 13% derivation to only a handful of stated in the ND region to the detriment of other states with rightful constitutional claims to some of the funds.

These states should be paid in arrears and the oil states who have been spending the allocation due to Northern states and others, should be made to refund the money.

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TO KEEP NIGERIA ONE IS A TASK THAT MUST BE DONE

Nigeria should divide and each region should get 100% derivation. Problem solved.

We'll have to see how the 13% derivation is implemented going forward. By the time every state with revenue generating natural resource is accounted for as required by the constitution, the remaining of the 13% shared among the oil states would have been reduced significantly.

Very poor calculation there, Ndu_Chuks. The 13% derivation to oil states will not be affected in any way. If the federal pool N consists of funds from x(oil)+ y + z sources, 13% of X will remain the same regardless of the values of y,z and N. While N depends on those variables,the variables do not dependant on N or each other. 13% derivation is actually 13% of a fraction, which happens to be more than 90% of N.

IMO,every state should own all their resources and pay FG 25% contribution.

Beaf: Crap, sir. It simply implies that you need to get your states producing minerals to recieve the 13% derivation.
My broda, sense pass sense.

You people shouted for 13%, now you have it, just that you have to put your dusty arses to work. Lol!

Why are you such a shameless liar and decietful creature? Is there no lenght you will not go to in your desire to satisfy your moronic "parasite" tag that can only wash with your clannish followers full of feudalistic ardour but lacking even basic intellect ?

Nairalanders, stop letting this sycophant decieve you. See the constitutional provisions to note that it is clear, without any ambiguity whatsover, the FG , 100%, controls the process involved in the extraction and use of mineral resources anywhere it is found in Nigeria. It is simple enough to find this info so you can all tell this charlatan to shut up instead of spamming the forum and confusing the uninformed to hide how his PDP paymasters are not interested in tackling constitutional reforms that will give States more autonomy and control. It is pointless shouting ,like a village fool, for everyone to "occupy their resources" while the FG will not relinquish the control that will make that happen.

The rights to ownership of minerals is held by the Federal Government and not the State government. The FG can then grant licences to organisations to explore, extract, refine and sell mineral resources. That is the official position and till that changes it is laughably ignorant for anyone to speak otherwise i.e as if States have any say at all. Issues are more about an indolent FG failing, like the "leaner government not possible" capitulation, to bravely pursue constitutional reform that can bring the autonomy that will surely aid rapid development.

FACE:

Very poor calculation there, Ndu_Chuks. The 13% derivation to oil states will not be affected in any way. If the federal pool N consists of funds from x(oil)+ y + z sources, 13% of X will remain the same regardless of the values of y,z and N. While N depends on those variables,the variables do not dependant on N or each other. 13% derivation is actually 13% of a fraction, which happens to be more than 90% of N.

IMO,every state should own all their resources and pay FG 25% contribution.

FACE, you are wrong in this case. The 13% derivation is not based on 13% of onshore oil contribution by the so-called oil states. It is 13% accruing to the Federal account from onshore resources and off shore resources(which belong to every state). To date, the so-called oil states have been wrongfully consuming 13% of contributions from all onshore and offshore resources.

I agree with you however, that the the derivation formula is a joke, subjective, and needs to be revisited. Oil Revenues from offshore which do not belong in the derivation calculations are included - this is a great injustice to the rest of states who do not have onshore oil.

The whole revenue allocation system need to be revamped very urgently.

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TO KEEP NIGERIA ONE IS A TASK THAT MUST BE DONE

Dudu_Negro: http://1st-nigeriadirectory.com/index.php?option=com_content&view=article&id=74&Itemid=78

Err, what you posted is the trigger that will burst open the revenue allocation injustice. By the time all is said and done, each state will be better off with the exception of the onshore oil producing states who have been ripping us off, hitherto.

Let's have equity if we cannot have federalism. ko kwa?

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TO KEEP NIGERIA ONE IS A TASK THAT MUST BE DONE

What about resources that are found in other states? Are those states not entitled to 13% derivation too. This is cheating. What we want is resource control and not some satanic revenue sharing formulae. Just because the north complained about off shore oil, they're been pacified. What about the south-east that has been asking for an additional state for a long time. It just goes to show the kind of fear Jonathan has for these northerners.

I am waiting patiently to see what the package(or ransom) will be for Boko Haram.

QUESTION: If the offshore or the Atlantic or better still our water environment is under attack today, how would you, me and the international bodies caption/title the attack? Will it be captioned as "NIGER DELTA WATER UNDER ATTACK" OR "NIGERIA'S TERRITORIAL WATER IS UNDER ATTACK". How will the FG draft soldiers and Navy to fight back? Will the modus operandi draft all Nigerian soldiers irrespective of where you come from or soldiers from Niger Delta only?

ba shakka!!

In settling the arrears you called for, it will be better that this settlement is built into future payments as a stepped formula that logarithmically fall off with recurring years untill its all paid off.

If 5billion Naira is a calculated arrears, say to Ondo State for instance, for mined coal for x years, and its coal is still being mined going forward, then instead of a 13% derivation, it should be, say, 20% starting in the first 5yrs, dropped to maybe 17% in the following, then stepped like that till settled.

In calculating and settling arrears, there will be problems with States that splited depending on how far back the arrears is accrued. Ondo's arrears for instance will include Ekiti and uptill its creation as a separate State.

Afam, stop asking for additional states. . . you hurt your cause! You will have so many states that your focus becomes diluted and your coalition splinters off into desgregated interests.

gbogboti: QUESTION: If the offshore or the Atlantic or better still our water environment is under attack today, how would you, me and the international bodies caption/title the attack? Will it be captioned as "NIGER DELTA WATER UNDER ATTACK" OR "NIGERIA'S TERRITORIAL WATER IS UNDER ATTACK". How will the FG draft soldiers and Navy to fight back? Will the modus operandi draft all Nigerian soldiers irrespective of where you come from or soldiers from Niger Delta only?

I guess they will draft only soldiers paid with Niger Delta oil money.
And unfortunately for you that is the entire armed forces. By the way media would say Nigerian waters because we haven't seceded yet. But if there was a secession would they call the waters "northern nigeria waters" ?

Dudu_Negro: Afam, stop asking for additional states. . . you hurt your cause! You will have so many states that your focus becomes diluted and your coalition splinters off into desgregated interests.

Forget that one. can't you see the way Jona has turned into father christmas. We have to fight for something that will increase our allocation.

Afam, I understand your plight. Individually you cannot influence Govt policy, but collectively you can. That collectivity is aggregated in the hands of 5 governors representing East. What are they doing, politically and strategically, to bring GEJ's focus to East?

State creation, while it works for some, may be detrimental for you. Example. . .Kaduna State has diverse people and cultures and religion, it would be nice to erode the core North's grip on the destiny of its Christian minority by creating a State that frees the Souther Kaduna people. Kogi West is different from Kogi East, so it would be good to split them and combine Kogi West into Kwara or Osun or Ekiti even. So in East, do you have people of different cause and root that needs to be isolated and let go? If yes, then create additional state to free them. Anioma Igbos can get a State or join an already existing one to form a core Igbo and reinforce the Eastern consciousness.

I trust bros Jonathan, He's a man of justice and equity

I heard the next derivation sharing will touch Agric resource states like Ondo ( number 1 Cocoa Producer) extra % for their trouble

Then he will add Extra 13 or so % for my people in Niger State (Naija cheated them for too long by using Kainji dam and river Niger for free)

The mother of all sharing will go to Lagos and a few other states across Nigeria for taking in people running away from their villages. It shall be well with Uncle Jona.

It's sharing time in Nigeria, even Boko Haram go get their share. Everything will be backdated

Sharing is caring, Sango bless GEJ

Kilode?!:
I trust bros Jonathan, He's a man of justice and equity

I heard the next derivation sharing will touch Agric resource states like Ondo ( number 1 Cocoa Producer) extra % for their trouble

Then he will add Extra 13 or so % for my people in Niger State (Naija cheated them for too long by using Kainji dam and river Niger for free)

The mother of all sharing will go to Lagos and a few other states across Nigeria for taking in people running away from their villages. It shall be well with Uncle Jona.

It's sharing time in Nigeria, even Boko Haram go get their share. Everything will be backdated

Sharing is caring, Sango bless GEJ

LOL