By Emmanuel Elebeke

ABUJA — Oil producing communities in six states of the federation have raised an alarm, alleging that their state governments have either misappropriated or misapplied a whoping N7.282 trillion, being payments of the 13 per cent derivation for 13 years, leaving the oil and gas communities in hunger and abject poverty.

The communities made the allegation in a letter to Nigerian Extractive Industries Transparency Initiative, NEITI, and signed by Chief William Igere- Delta State; Pastor Macpherson Kurobo- Bayelsa State; Chief Harry Opaks- Rivers State; Saviour Okon- Akwa Ibom State; Princess Nomwen Uhunmwangho- Edo State, and Mr. Samuel Ebiwanno, representing Ondo State.

They urged NEITI to intervene in the illegal and unconstitutional payment of 13% derivation into the state governments accounts.

In their letter to NEITImade available to this reporter , the oil and gas communities restated the legal position that 13% derivation fund is not part of consolidated revenue of any tier of government nor part of state joint local government account as 13% derivation fund is the first charge on the Federation Account as provided in the Section 162 (2) of the 1999 constitution of the Federal Republic of Nigeria. 13% derivation fund is prior to any revenue formula.

They insisted that 13% derivation fund exists before any revenue formula or revenue sharing by FAAC. The amount due to 13% derivation fund is kept aside constitutionally or removed from the total oil revenue before sharing between the Federal, State and Local Governments – before any FAAC meeting. Therefore, it is illegal and unconstitutional to pay 13% derivation fund through any state government account.

“The illegal and unconstitutional payment of 13% derivation fund through the state governments have left the actual oil and gas producing communities in abject poverty.

The state governments which received this money illegally use 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.  This situation has caused monumental fraud against the oil and gas producing communities.

“The oil and gas communities therefore appeal to NEITI to intervene and prevail on the RMAFC to respect the constitution of Federal Republic of Nigeria, stop this illegal and unconstitutional payment of 13% derivation fund into any state government account, comply with the principle of fiscal responsibility, transparency, accountability and pay the 13% derivation fund directly to oil and gas communities through a National Derivation Board” they said.

The communities also appealed that while NEITI is carrying out the financial audit on the 13% derivation fund, they should visit the oil and gas communities to undertake physical audit of these communities to see the degree of poverty, lack of infrastructure, lack of means of livelihood, level of devastation, environmental degradation, pollution and health hazard.

Only last week, the Federal Government directed NEITI to commence the audit of the 13 per cent derivation revenue accruing from the extractive sector to all natural resource producing states in the country with a view to determining how the disbursements have been utilised by natural resource producing states.

According to a representative of the Civil Society Organisations, Faith Ossai Nwadishi, the audit which would be comprehensive, would begin from January after which the report will be submitted to the government in line with the guidelines of such exercise.