Confab Committee to take decision on derivation, onshore/offshore Tuesday

Committee sets up panel to resolve differences between northern and southern delegates

The northern and southern delegates in the Committee on Devolution of Power of the National Conference again, on Monday, failed to agree on the issue of revenue sharing and derivation fund.

After several hours of a closed-door session, the Committee merely took contributions from its members, which would be discussed on Tuesday with a view to taking decisions on the issues.

While the northern delegates demanded the reduction of derivation fund to five per cent from 13 per cent and should be limited to only onshore, their southern counterparts, particularly from the South-South geo-political zone, asked for its upward review to 50 per cent.

The fund is paid to the nine oil producing states in the country in accordance with Section 162 (2) of the 1999 Constitution. The states are Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Rivers, Imo and Ondo.

 

The northern delegates also called for the scrapping of interventionist institutions and agencies like the Ministry of Niger Delta, Niger Delta Development Commission, NDDC, Amnesty Programme for ex-militants and the c-Component of the SURE-P.

The co-chairman of the Committee, Victor Attah, told journalists after its session that it would announce its resolutions and conclusion on some of the issues on Tuesday.

“Every member of this committee has now made his or her contribution to the discussion on resource control, including the two co-chairmen,” Mr. Attah, a former governor of Akwa Ibom, said. “We have given ourselves assignment of what to go and look out for. By tomorrow, hopefully, we will reach a conclusion on those matters and we will be able to announce resolution and conclusion.”

A member of the Committee, Eddy Erhagbe, said during the stormy discussion there was a gradual move towards consensus on the retention of the 13 per cent as derivation fund to the oil and gas producing states.

He, however, said a committee was constituted to harmonise the contributions of the members and present reports to it.

“Everybody has now spoken on the issue of revenue sharing and on the matter of derivation. There were different positions by members of the committee but the two chairmen have summarised. The situation now is that we are most likely going to agree on a number of issues. The extremes have been narrowed down to a large extent,” Mr. Erhagbe said. “Some issues that have to do with the sharing formula have been agreed upon both the horizontal and the vertical and a small committee is going to make recommendations as to monies that will be put aside for development. But on the critical issue of resource control, as regards 13 per cent for now, there is gradual move towards consensus on it. It is expected that we are not going to go below where we are now but there could be the possibility of going up while other provisions will be made to make sure that other sections are taken care of.”

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  • Naija person

    I hope in the same vain, no nothern state will mine any mineral resources in their state. Like oil, all such resources will be controlled by FGN and the proceeds shared to all the federating states equally. The control of all state resources should be institutionallised such that when the focus shifts from oil to something else, everyone will benfit still just as we are all benefitting from oil. Otherwise, “Resource control should be upheld”

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