By Emma Amaize

WARRI—IJAW  oil and gas-producing communities in Delta State, yesterday, declared that the payment of 13 per cent derivation through the state governors was illegal and unconstitutional, and urged the Federal Government to pay the fund through appropriate host community structure of the oil and gas kingdoms.

They spoke through the national chairman of Flow Stations/Well Head Host Communities of Nigeria, FLOWHOSCON, and chairman of Kokodiagbene community in Warri South-West Local Government Area, Mr. Sheriff Mulade.

Mulade, who also welcomed the recent Federal Government directive on oil companies to relocate their headquarters to the Niger Delta region, suggested that the Nigeria National Petroleum Corporation, NNPC, should take the lead.

He said: “The oil and gas producing communities also affirm that paying the 13 per cent derivation fund through the governors of oil and gas producing states is illegal and unconstitutional, as only the President has the prerogative and jurisdiction on such matters as provided for in the Exclusive Legislative list.

“For emphasis, no state governor and state House of Assembly can legislate or act on any matter in the exclusive legislative list. The 13 per cent derivation fund as enshrined in section 162 (2) of the 1999 Constitution of the Federal Republic of Nigeria (as amended), confirms that 13% derivation fund is first-line charge on the Federation Account.

“It is the resolve of the oil and gas communities that the present system of paying the 13% derivation fund through the governors of oil and gas producing states should stop and the fund should be paid through appropriate host community structure of the oil and gas producing kingdoms in Nigeria.

“Payment of the 13 per cent derivation fund directly to host communities will end militancy, pipeline vandalism and illegal bunkering and it will give host communities a sense of belonging and guarantee security and peace, and thereby create the enabling environment for development and also make the paramount rulers responsible to government at all levels.”

Acknowledging that in Delta State, the Delta State Oil Producing Areas Development Commission, DESOPADEC, was established by laws of the Delta State Government to administer 50 per cent of the 13 per cent derivation fund, allocated to the oil commission to develop oil and gas communities, he said the performance so far was below par.

On the relocation order, he asserted:”The recent order on relocation of headquarters to the Niger Delta region given by the Federal Government to multinational oil companies is a welcome development, it is long overdue and I want to commend the government for this bold step, but at the same time, I want the government to also order the Nigerian National Petroleum Corporation, NNPC, to move its headquarters to any of the oil producing states in the Niger Delta region.”