News

September 19, 2011

Increase oil derivation to 50%, Ewherido urges FG, NASS

By Henry Umoru
ABUJA— Vice Chairman, Senate Committee on Marine Transport, Senator Pius Ewherido, Delta Central, has called on the Federal Government and the National Assembly to increase the present 13 per cent oil derivation funds to 50 per cent, if the problems affecting the oil producing states of the Niger Delta region is to be addressed.

Speaking with journalists, weekend, Senator Ewherido noted that it will be criminal on the part of the Federal Government to fail to raise the derivation funds to 50 per cent against the backdrop of the enormous challenges facing people of the South-South. He added that pegging it at 13 per cent was not a fair deal.

He said: “It would be criminal for this country not to increase the oil derivation formula from 13 per cent. We have always said the ideal would be 50 per cent.

“In a pure federal system, the resources would be explored and exploited by the people of the area who would pay tax to the centre. That is the prescription in fiscal federalism. But today, Nigeria takes it and gives to the area what they like. So, asking for 50 per cent is not too much.”

He noted that the oil producing states can no longer develop with the meagre 13 per cent it presently gets from Abuja. He said what the Niger Delta as a region needed at the moment was an enhanced package for the people who have suffered and also for the need to build more bridges.

He described the creation of the Niger Delta Development Commission, NDDC, the amnesty programme and that of the Niger Delta Ministry as palliative measures that cannot wipe off the gravity of the problems in the region.

On constitution amend-ment, Senator Ewherido urged the National Assembly to remove oil exploration and power from the Exclusive Legislative List to the Concurrent List.