FG Urged To Stop Paying 13% Derivation To Niger Delta Governors

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Oil producing communities in Delta State, has urged the Federal Government to stop  further disbursement of the 13 per cent derivation fund to Niger Delta governors, saying the money did not belong to state governments, but host communities.

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The Chairman of  Oil and Gas Producing Communities of Nigeria, Prince Maikpobi Okareme and Secretary, Board of Trustees, 13 Per Cent Derivation Fund, Mr Hendrick Opukeme, said separately that the oil communities would no longer accept further payment of the money to their governors because it was illegal.

Okareme, told Vanguard that The oil producing areas under the auspices of TROMPCON and HOSTCOM, which he was privileged to coordinate at the Pan Niger Delta Forum, PANDEF, is strongly of the opinion that the current 13 per cent derivation should not form part of the consolidated revenue of the states to be continuously misapplied by them.

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Having failed to use derivation fund for the original purpose of ameliorating the negative effects of oil production on the people and environment, the communities now  insist that the Federal Government should immediately stop disbursing the 13 per cent derivation to states to be used as a budgetary item.



Rather, any percentage of the fund already set aside by states such as Ondo, Delta, Abia and Edo should be sent directly to recognized commissions manned exclusively by nominees of host communities, example Delta State Oil Producing Areas Development Commission, DESOPADEC.

While, thhe balance of such funds be given  to the five states together with the full derivation funds to Rivers and Akwa Ibom.

Meanwhile, the Oyo State Government has urged the Federal Government to commence the payment of 13% derivation from royalties, taxes and levies from solid minerals to the State and Local Governments.

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The  Secretary to the State Government, Mr. Olalekan Alli said that the state was due for the derivation, stressing that the derivation funds would be committed to developmental projects in the state.