Nelson Utip
Senator Emmanuel Ibok Essien, former Deputy Chief Whip of the Nigerian Senate has called for an increase in the derivation allocation to oil-producing states from 13 per cent to 25 per cent.
This is sequel to a call by former President Olusegun Obasanjo’ s recent call for an increase in the derivation allocation to oil producing states.
Ibok Essien said this when he was a guest of Arise TV, he was surprised at Obasanjo’s new stance on the issue as he was a prominent advocate for a better deal for the people of the Niger Delta.while Obasanjo was against it.
A former National Chairman of the Pan Niger Delta Forum (PANDEF), said Obasanjo had opposed to an increase in derivation and resisted the payment of the onshore-offshore oil dichotomy until pressure was brought to bear on his administration.
The former Lawmaker had participated in the Political Reform Conference convened by Obasanjo and recalled that Niger Delta delegates had demanded a 25 per cent derivation allocation, while the conference recommended 17 per cent. He said the recommendation was not implemented, despite the region’s persistent demand for a fairer share of revenue from its natural resources.
He described Obasanjo’s recent position as surprising, coming nearly 19 years after he left office, while welcoming the former president’s remarks, he questioned whether the change of position was sincere . He believes that Obasanjo might have come to recognize the injustice he had earlier failed to address.
He also recalled that efforts were made during his service at the Revenue Mobilisation, Allocation and Fiscal Commission, RMAFC, to increase the derivation percentage from 13 per cent to 15 per cent stressing that the proposal did not secure approval because of political challenges.
He called on RMAFC to review the revenue allocation formula and recommend an increase to 25 per cent. He argues that the environmental pollution, ecological damage and devastation suffered by oil-producing communities require substantially greater resources to address.
“The suffering in the Niger Delta region is too much.” He said while maintaining that the funds currently accruing to the region were inadequate to tackle the scale of environmental damage and hardship experienced by its people.
Essien also argued that increasing derivation would benefit other resource-producing areas of Nigeria, not just oil-producing states.
The regional leader cited gold deposits in Zamfara, feldspar in Kogi, premium limestone deposits in Ogun, and other mineral resources across the country, noting that the principle of derivation applies to natural resources generally.
He called on RMAFC, the National Assembly and other relevant authorities to support an increase to 25 per cent, highlighting the need for resource-producing communities across Nigeria to receive a fairer share of the wealth generated from their lands.
