13%Derivation Fund:Ijaw monarch calls for board , presidential monitoring committee

By Jimitota Onoyume 

The federal government has been urged to set up a board  and a presidential  monitoring committee with representatives of oil and gas communities and other key stakeholders to administer the  13 percent derivation fund.

His Royal Highness  King Jerry Prebor (Snr.),  Amananaowei of  Meinbutus Federated communities,  made the appeal in an open letter to President Bola Tinubu.

“Establish a 13% Derivation Fund Board through appropriate legislative and executive mechanisms.

Constitute a Presidential Monitoring Committee comprising representatives of host communities, traditional institutions, civil society organizations and relevant government agencies”, he said. 

He said the current  payment of the fund to states in the Niger Delta region negates the essence of the fund which was conceived to address challenges of poverty , neglect and underdevelopment in oil and gas bearing communities. 

The monarch alleged that  the states were misdirecting the funds, stressing that a derivation board and a presidential monitoring committee would ensure the fund achieved its original purpose in the oil impacted communities in the region. 

” The proposal would ensure transparency, accountability and direct community participation in the planning and execution of projects funded through derivation revenues.

“This letter is borne out of deep concern regarding the continued exclusion of oil-producing communities from the benefits of the constitutional 13 per cent derivation fund provided under Section 162(2) of the 1999 Constitution of the Federal Republic of Nigeria (as amended).

“The derivation principle was conceived as a mechanism of justice, compensation and development for communities that bear the environmental, economic and social consequences of oil and gas exploitation. Unfortunately, despite trillions of naira disbursed over the years, many oil-bearing communities remain without potable water, quality healthcare, functional schools, motorable roads and other critical infrastructure.The reality on the ground contradicts the constitutional intent behind the derivation principle.

“Your Excellency, it is important to state that the struggle for the restoration and enhancement of derivation was championed by host communities, traditional rulers, civil society organizations and respected Niger Delta leaders. It was not a struggle initiated or sustained by state governments. Therefore, the beneficiaries envisaged by the spirit of derivation are the oil-producing communities themselves “, he said. 

He also said that  the Petroleum Industry Act, PIA, did not address the concerns of the communities over the alleged misappropriation of the derivation fund, stressing that the proposed derivation board and a presidential monitoring committee were the twin solutions to the worries of the communities as they would guarantee transparency , accountability and community participation in the whole process.

” I also wish to respectfully disagree with recent assertions that the Petroleum Industry Act (PIA) has sufficiently addressed concerns relating to the 13 per cent derivation fund. The PIA and the constitutional derivation principle are distinct legal frameworks. One cannot substitute for the other “, he said. 

Continuing, the monarch said the president should direct the Revenue Mobilization  Allocation and Fiscal Commission  to review its position on the administration of the derivation fund. 

“Direct the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) to review its position regarding the administration of derivation funds and to recognize the constitutional rights and developmental interests of host communities”, he said. 

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