
Oil spillage
By Noel ONOJA
Oil producing communities in Abia State, have joined their counterparts in other oil producing states in clamouring for the direct payment of 13 per cent derivation fund to the communities.
The oil producing communities are insisting that according to the constitution, the 13 per cent Derivation Fund is a first line charge on the Federation Account, which should be directly beneficial to the communities rather than through a third party arrangement.
The group argued that the 13 per cent derivation is constitutionally set aside before the Federation Accounts Allocation Committee (FAAC) meeting is allowed to share the balance of the total oil revenue of 87 per cent.
These observations were contained in a memorandum sent to the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), and signed by 10 leaders of the communities including Chief Jones Udeogu, and Barrister Chinedu Elechi.
The memorandum read in part: “RMAFC has no right to send the 13 percent derivation fund through any state government account who is the third beneficiary of the Federation Account.
“It is also clear that 13 per cent Derivation Fund is not part of the consolidated account of any tier of government. The fund is not part of state/local government Joint Account, the fund as provided in the 1999 constitution is on its own and should be treated as such,” they stated.
They noted that the fund is not manna from heaven but was fought for by the oil communities during the 1994/95 National Constitutional Conference, headed by Chief Edwin Clark.
“It was due to the pressure exerted by the oil and gas producing communities of Nigeria that made the 13 per cent derivation fund as one of the main decisions and resolutions of the 1994/95 conference. During the 1999 Constitution Drafting Committee, the oil and gas producing communities were there to pile pressure to ensure that 13 per cent derivation fund is enshrined in the 1999 Constitution of Nigeria,” the group said.
They therefore posited that RMAFC has no right to send the fund through the state governments’ account, which is the third beneficiary from the Federation Account.
They alleged that for 13 years, the governors of the states have received the derivation fund meant for the development of oil and gas producing areas to develop their state capitals and non oil producing communities, leaving the actual host communities in abject poverty, hunger and penury.
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