Niger/Delta States Kick Against Move To Scrap Derivation Principle From Constitution, Want Derivation Fund Increase To 50 Percent

By Ayodele Oni

The Pan Niger-Delta Forum (PANDEF) and other stakeholders in the oil rich Niger-Delta region, have demanded an increase in the 13 percent Derivation fund to Oil Producing States, to 50 percent to reflect the current economic realities.

The Forum, at an Emergency General Meeting held in Asaba, Delta State, noted that the extant 13 percent derivation has not been reviewed for over 22 years, despite the constitutional provision for review of revenue allocation every five years, to reflect changing economic realities.

In a communique at the end of the meeting, which was chaired by the National Chairman of PANDEF, Senator Emmanuel Ibok Essien, it extensively discussed a Bill cited as Constitution (Alteration) Bill 2021, intending to delete Section 2, Subsection 2 of the 1999 Constitution (as amended).

The bill was sponsored by 59 Members of the House of Representatives from the Northern part of the Country.

It noted its socio-economic consequences on the Niger Delta Region and the Country at large.

“That the principle of derivation as encapsulated under the provison to Section 162 (2) of the 1999 Constitution (as amended), was aimed at providing recompense to the producers of any natural resources for the expropriation and sequestration of their rights to control and manage same, by the Nigerian State.

“That when revenues from cocoa (in the West), groundnut (in the North), and Palm Produce and Coal (in the East) were the nation’s economic mainstay, derivation in the Revenue Allocation principle was not less than 50 per cent.

“Noted that derivation, as a revenue allocation principle, has been resolutely suppressed since crude oil became the country’s major revenue earner.

“Meanwhile, oil and gas exploration activities have degraded the hitherto luxuriant, healthy ecosystem of the Niger Delta, and damaged the indigenous people’s means of livelihood, with little or no effort to ameliorate their consequential dire standard of living.

“Therefore, insists that the principle of derivation in revenue allocation in Nigeria cannot be deleted from the Constitution.

“It is not only against the principles of fairness, equity and justice but atrocious and wicked to contemplate deleting derivation principle from the Nation’s Constitution.

“Therefore, the Meeting:

Unequivocally and in full resolution, condemns the obnoxious and Satanic Bill intended to delete Subsection 2, Section 2 of the 1999 Constitution (as amended) and describes the Bill as a “Legislative Coup” against Oil and Gas Producing States and Regions of the Country.

“Warns that the Niger Delta people are ready and mobilized to dispense full resistance against this wicked machination and any future attempt to further economically emasculate the Region and its people.

“We will resist this Satanic and senseless coup with every fibre in our being. If they move one more step, we will respond in kind.

“Describes the sponsors of the Bill, the 59 ignominious, and barefacedly dishonourable Members of the House of Representatives and their clandestine backers, as “Terrorists”, who do not care about the peace, progress and corporate existence of Nigeria.

“Reminds the 59 dubious and rapacious Members of the House of Representatives, their Sponsors and indeed all Nigerians that the Derivation principle was negotiated by the founding fathers of Nigeria before Independence and it cannot be deleted now. And that any attempt to do so is a call to anarchy.

“Implores President Muhammadu Buhari and the National Assembly to focus attention on addressing the fundamental issues confronting the country, instead of further stoking the ambers of discord and disharmony.

“Notes that the extant 13% derivation has not been reviewed for 22 years, despite the constitutional provision for review of revenue allocation every five (5) years, to reflect changing economic realities.”