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13% Derivation: Edo Oil Communities Want Jonathan to Withhold Allocation to States

01 Aug 2013

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President Goodluck Jonathan

* Demand action on NEITI report

By James Emejo

Oil producing communities in Edo State have appealed to President Goodluck Jonathan to immediately direct the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) to discontinue payment of the 13 percent derivation fund to the state governors. Wednesday

They further demanded an immediate action on the recently released report by the Nigeria Extractive Industry Transparency Initiative (NEITI) to ensure that those found to have corruptly enriched themselves from the oil communities were brought to book.

The group argued that the Supreme Court had vigorously applied that the 13 per cent derivation fund was not part of state consolidated revenue or that of the local government, adding that the last RMAFC had also agreed that the fund is not part of the consolidated revenue of any tier of government.

The communities, in a petition to the president and signed their by representatives, said: "The previous administration of the RMAFC in its submission on the new revenue formula to the sixth National Assembly stated unequivocally that the 13 per cent fund was not part of fund of any tier of government. The last RMAFC went further and recommended the creation of state derivation boards for the oil and gas communities access the 13 per cent derivation fund.

"Your Excellency, we believe strongly that this is a miscarriage of justice and failure of service delivery on the part of the governors to continue to manage the 13 per cent derivation fund. Apart from the fuel subsidy fraud, the 13 per cent derivation fund that have been misappropriated and misapplied by governors of the oil producing states is no doubt one of the biggest frauds ever in Nigeria's socio-political and economic development."

Continuing, it said: "Therefore, we pray that the illegality perpetrated by the Office of the Chairman of RMAFC as well as the Ministry of Finance be swiftly corrected as delay in this issue has caused monumental fraud against the oil and gas communities of Nigeria."

The signatories to the petition included Mrs. Nowan Uhunmwangho, Mr. Peter Agbonkoko, Donyegha Ben, Mrs. V. Potoki, Mr. Edwin Ikinbor, Pastor Reuben Milton and Pastor A. B. Imafidon.

Other are Brasana Ekomiyenyefa, Olu Oyeh, Mr. Segun Imafidon, Karaki Ebi, Victor Omoruyi, Hon. Jackson Ikinbor, and Mrs. Queen Donyegha.

Tags: News, Nigeria, Featured, 13% Derivation, EDO OIL COMMUNITIES, ALLOCATION

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