Oil bearing communities in the Niger Delta region have demanded from the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) direct payment of the 13 percent derivation fund to them through National Derivation Board, saying the present arrangement is not favourable to them.
In a position paper he presented, Chief Wellington Okirika, Leader of oil and gas producing communities stressed that if the constitution of Nigeria is truly supreme, then section 162of the 1999 constitution is clear enough for anybody to know that 13percent derivation belongs exclusively to the people of the oil/gas bearing communities as compensation and reparation for loss of their productive farmland and fishing rights and not for state governments to use.
The statement which was also signed by Chief William Igere for Delta, Comrade Sam Ebiwanno for Ondo, Princess Nomwen Uhunmwangho for Edo, Chief Onyema Olujie for Abia,Chief Brisibe Opukime Nabena for Bayelsa, Hon,Chief Appolos Emenike for Rivers, Alhaji Abrahim Ikansin for Cross River and Barrister Temple Okonji for Imo warned that unless the constitution is respected fully, the people will have no choice but to confront the government directly.
In the Memorandum titled: “13% Derivation Under The Provision of Section 162 (2) of the 1999 Constitution as Amended”, the oil/gas producing communities stressed that the states are entitled to receive and manage the 13% derivation
“In order to put this issue in proper perspective, a reproduction of Section 162 (2) of the constitution of the Federal Republic of Nigeria 1999 as amended thereof is imperative at this juncture. The Federation shall maintain a special account to be called “the Federation Account” into which shall be paid all revenues collected by the Government of the Federation except the proceeds income tax of the personnel of the armed forces of the Federation, the Nigeria Police Force, the Ministry or department of government charged with responsibility for Foreign Affairs and the residents of the Federal Capital Territory, Abuja.
“The President, upon the receipt of advice from the Revenue Mobilization Allocation and Fiscal Commission, shall table before the National Assembly proposals for Revenue Allocation from the Federation Account, and in determining the formula, the National Assembly shall take into account, the allocation principles especially those of population, equality of states, internal revenue generation, land mass, terrain as well as population density;
They insisted that the principle of 13% Derivation is firmly entrenched under the proviso to Section 162 (2). Accordingly, whatever formula, the National Assembly adopts, it must constantly reflect 13% Derivation.
“According to the communiqué, 13% derivation is prior charge on the Federation Account and/or and Revenue Formula under Section 162 Therefore it is a mandatory provision and/or a condition precedent to the constitutionality of any Revenue Formula in Nigeria.
Okrika said as regards the State and Local Government Joint Account under Section 162 (b) of the constitution, the position of the law is clear on this issue that an express mention of a word leads to the exclusion of those not mentioned.
Consequently, the express mention of the words State and Local Government Joint Account, leads to the exclusion of oil producing communities, because if the legislature had intended to include the oil producing communities into that Joint Account, the Constitution could have expressly so provided.
“In the light of the above, the State and Local Government Joint Account is also clearly not applicable to payment 13% Derivation under the Constitution.
“ It is axiomatic that the intended beneficiaries of this 13% Derivation Fund are the oil producing communities. This is because they directly feed the effects of oil and gas exploration and exploitation. The principle of derivation is thus introduced to cushion the effects of this devastation of oil exploration as well as to recompense them for divesting them of their proprietary right.
“The 13% Derivation Fund belongs exclusively to the oil and gas producing communities which are the source of derivation. The oil facilities, flow stations etc. are located in the oil and producing communities where oil exploration, exploitation and production are being carried out causing monumental degradation, pollution and health hazard etc. 13% Derivation Fund is compensation and reparation for loss of fishing right and loss of productive farm land.”
They therefore warned that should the money be given to the state governments, the federal government should expect reactions from the people.
90% Of Money Laundered Via Real Estate, EFCC Reveals
The Economic and Financial Crimes Commission (EFCC) says about 90 per cent of money laundering is done through the real estate sector.
The commission’s Chairman, Abdulrasheed Bawa, stated this while featuring on Channels TV’s Sunrise Daily, yesterday,
According to him, although the sector is monitored via the special control unit, more needed to be done.
According to Bawa, “One of the problems we have now is the real estate. 90 to 100 per cent of the resources are being laundered through the real estate.”
He said there are so many issues involved, but that they were working with the National Assembly to stop what he called “the gate keepers” as there would be reduction in looting if there is no one to launder the money.
Bawa, the EFCC boss, gave an example of a minister who expressed interest in a $37.5million property a bank manager put up for sale.
He said, “The bank sent a vehicle to her house and in the first instance $20million was evacuated from her house.
“They paid a developer and a lawyer set up a special purpose vehicle, where the title documents were transferred into.
“And he (the lawyer) is posing as the owner of the property. You see the problem. This is just one of many; it is happening daily.”
The EFCC chairman also revealed that he receives death threats often.
Asked to respond to President Muhammadu Buhari’s frequent “Corruption is fighting back” expression, Bawa said he was in New York, USA, last week, when someone called to threaten him.
“Last week, I was in New York when a senior citizen received a phone call from somebody that is not even under investigation.
“The young man said, ‘I am going to kill him (Bawa), I am going to kill him’.
“I get death threats. So, it is real. Corruption can fight back,” he said.
On corruption in the civil service, he said there were a lot of gaps, especially in contracts processing, naming “emergency contracts” as one.
Bawa said, “A particular agency is notorious for that. They have turned all their contracts to emergency contracts.”
However, he said, EFCC has strategies in place to check corruptions, one of which is “corruption risk assessments of MDAs”.
According to him, “I have written to the minister and would soon commence the process of corruption risk assessments of all the parastatals and agencies under the Ministry of Petroleum Resources to look at their vulnerability to fraud and advise them accordingly.”
Asked if the scope of corruption in the country overwhelms him, Bawa, the EFCC boss said, “Yes, and no.”
We’ve Spent N9bn To Upgrade RSUTH, Wike Confirms
The Rivers State Governor, Chief Nyesom Wike, says his administration has spent N9billion in upgrading structures and installation of new equipment at the Rivers State University Teaching Hospital (RSUTH).
He said the fact that 40 per cent of the 2021 budget of the state is dedicated to provision of quality healthcare delivery was a further demonstration of the priority placed on the sector.
Wike made the explanation at the foundation laying ceremony for the construction of a Renal Centre at RSUTH, last Friday.
The governor said he made promise to Rivers people that the best would be provided to them in all sectors of the society within his capability because of the mandate they gave to him.
“As we came on here, I just looked around and I see the changes in this teaching hospital. I can say that we have put not less than N9billion in this teaching hospital.
“If you look at the budget, the health sector alone, what it’s taking from the Rivers State Government is not less than 40 percent of the 2021 budget.”
Speaking further, Wike said the state government cannot afford to implement free medical service programme in the present economic circumstance.
While dismissing the request for a subvention for RSUTH, Wike, however, commended the chief medical director and his team for their commitment to turnaround the fortunes of RSUTH.
“I have never seen anywhere that health services can be totally free. They’re telling me that people who come here can’t pay. I have never declared that this state is going to take over the health fees of anybody.”
Also speaking, the former Minister of Transport, Dr. Abiye Sekibo, who performed the flag-off, noted that Wike’s achievements in the health sector in particular, surpass what former governors of the state had done.
Sekibo said that the governor has given equal attention to every section of the health sector by providing complete health infrastructure that was positioning the state as a medical tourism destination in Nigeria.
Earlier, the Rivers State Commissioner for Health, Prof Princewill Chike, lauded Governor Nyesom Wike for his interest in the health of Rivers people.
He noted that the renal centre, when completed, would become another landmark development project in the health sector that would handle and manage all kidney-related ailments.
In his remarks, the Chief Medical Director of the Rivers State University Teaching Hospital, Dr. Friday Aaron, commended Wike for approving the renal centre.
Aaron explained that chronic kidney disease was a major burden globally with estimated 14 million cases in Nigeria.
According to him, over 240,000 of these cases require renal replacement therapy in the form of dialysis and renal transplant.
The CMD said the building that would house the centre was expected to be completed in six months and consists of two floors.
The ground floor, according to him, would house the haemodialysis unit with eight haemodialysis machines.
He further explained that the first floor of the centre would house the surgical component where most of the sophisticated equipment for kidney transplant would be installed.
Aaron said Wike has released the funds required to build, equip the centre as well as for the training of personnel locally and internationally.
Power Generation Falls 23% To 3,172MW
Power supply in Nigeria has failed to improve on last week’s performance, as it fell by 22.9 per cent from peak generation of 4,115Megawatts on Saturday to 3,172.20MW as at 5pm, yesterday, latest data from the System Operator has shown.
According to the data, most power plants were operating far below capacity due to gas shortage with Olorunsogo Power Plant 335MW capacity; and Sapele Power Plant, 450MW capacity; completely out.
Egbin was generating at 746MW; Omoku 37.20; Omotosho (NIPP) at 105MW; while Afam was generating at 80MW.
The data showed that on the average power generation in the past seven days were 4,120.9MW on Sunday, June 6; 4,249.4 on Monday, June 7; 4,000.9MW on Tuesday, June 8; 3,720.7 on Wednesday, June 9; 3,517 on Thursday, June 10; 3,765MW on Friday, June 11; and 4,115MW on Saturday, June 12.
The International Oil Companies (IOCs), had last warned that despite Nigeria’s huge gas reserves a lot needs to be done to attract investment to the sector to develop gas reserves to boost power generation in the country.
Speaking at the just concluded Nigeria International Petroleum Summit, the Chair, Shell Companies in Nigeria/MD SPDC, Osagie Okunbor, said with 203trillion Cubic Feet of gas reserves, what was needed in the country is to deliver projects that would produce the gas.
“The challenge is not just growing the reserves but in producing these reserves for the benefits of our country. Essentially growing the reserves and delivering on the production is a function of two or three elements.
“I like to see infrastructure that is required for the development of these resources at two levels. Soft infrastructure is often the one that is more important than and that is the one that is actually drives most of what you see at site.”
“Soft infrastructure refers to the enabling environment and nothing pleases me as much seeing both the Senate President and the speaker of the house give very firm commitments about trying to pass the PIB this month.
“That is probably the big one of the enabling environment to provide the kind of stability we also need all sorts of other issues we need to that we have discussed severally in terms of sanctity of contract, stable policies and collaboration and I think we are well on our way there”, he added.
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