By Emmanuel Elebeke

Oil producing communities in Bayelsa State have reiterated their stand in urging the Federal Government to revert to the provisions of the 1982 Act in the disbursement f 13 percent derivation fund. In a memorandum sent to the Chairman, Revenue Mobilisation, Allocation and Fiscal Commission, RMAFC,  obtained by Vanguard in Abuja, the communities affirmed   that the provisions of the 1982 Act stated that the 1.5 percent derivation fund accruable to oil producing communities be managed by them and wondered why it was changed when it increased to 13 percent.

According to them, “ In 1982, the derivation was 1.5 percent of the total oil revenue. It is pertinent to state that the Revenue Act 1 of 1982 made provision of 1.5 percent derivation fund for the development of Mineral Producing Areas in Nigeria. The derivation fund of 1.5 per cent was administered and managed through administrative committee system by federal government and not the state governments

“ It is therefore surprising that RMAFC decided to pay the 13 percent derivation into state government accounts when there is enough evidence from past administrative records and law that derivation fund is a federal government matter”.

They claimed that the oil and gas producing communities fought for the payment of 13 percent, adding that it was due to the pressure exerted by the communities that the 13 percent was enshrined in the 1999 constitution.

According to them, “ We insist on the provisions of Section 162(2) which states that provided that the principle of derivation shall be constantly reflected in any approved revenue formula as not less than 13 percent of the revenue accruing to the Federation Account directly from any natural resources. We do not need an amendment of the constitution for administrative implementation of that provision.

“From that provision of the constitution, it is clear that 13 percent derivation fund is theorist line charge of the Federation Account. The fund is prior to any revenue formula, it exists before any revenue formula. The amount due to 13 percet derivation fund is constitutionally set aside before any FAAC meeting to share the balance of the total oil revenue of 87 per cent”.

They therefore, posited that RMAFC has no right to send the 13 per cent derivation fund through any state government account, which is the third beneficiary of the Federation Account.