Opinion
Of Royalties And Oil Bearing Communities
The demands and grievances of Nigeria’s oil-bear
ing areas can be identified under five broad themes. These are related to the disposition of mineral land rents, the application of the derivation principle, the allocation of federally collected mineral revenues, the appropriate institutional and fiscal responses to the ecological problems of the oil-producing areas and the responsibility of the oil-producing companies to the oil producing/bearing communities with the present federal structure.
Perhaps the most logically and legally compelling of the demands of the oil-bearing communities and states are their claims to mineral land rents. For instance, land right in Nigeria were vested in the respective local communities. But under the Land Use Decree of 1978, however, ownership of land is vested in the state. Thus both traditionally and legally, the federal government has no direct claims to land in the states.
The Federal Government has continued not only to prescribe how much rent is paid by the oil-prospecting companies for land used, but also to collect these rents. The justification for the Federal Government’s action is the defunct Petroleum Decree of 1969 and relevant provisions of the 1999 constitution which vest in the federation control of all minerals and gas in, under or upon the land and territorial waters of Nigeria. However, these provisions clearly refer to ownership of mineral wealth and not ownership of land which, under the practice of the constitution, remains vested in the states.
In essence, therefore, the federal government’s retention of mineral land rents would appear to be unconstitutional since the states are clearly entitled to such rents as a matter of right. Two unresolved problems, however, beset the position that mining rents are legally not the property of the Federal Government. The first is whether these rents should belong to the state government or to the specific oil-bearing communities involved. Although the Land Use Degree would appear to give the states the right to these rents, the oil producing communities have also asserted an exclusive and intrinsic right to what they regard as rents on communal lands.
A far more complicated issue relates to the attempt by elements from the oil-bearing communities to juxtapose mineral rents and royalties as resources legitimately belonging exclusively to the oil-producing communities. Consider, for example, the following statement by the Movement For The Survival of the Ogoni People (MOSOP): “MOSOP insists that oil royalties and rents are the property of landlords and that the Federal Government must return to the oil-bearing communities all royalties and rents paid to it by the oil-producing companies since 1958.
The constitutional position on the matter is, however, unambiguous while rents are a tribute to the owners of land. The state governments, royalties are levies on minerals, whose ownership remain vested in the Federal Government.
The demand of the oil-producing states and communities is that a significant proportion (usually put at not less than 10 percent) of the mineral revenues should be returned to the producing areas on the basis of the derivation principle. Derivation is, of course, a long-standing principle of distribution which stipulates that a significant proportion of the revenues collected in a locality should be returned to that locality or segment.
Derivation was, however, introduced as mineral exploitation replaced agricultural exports as the principle source of government revenues and foreign exchange earnings in Nigeria. This change in the rules for allocating revenues was denounced by the majority ethnic nationalities who were bent on ensuring that the minority groups that produce the oil were denied their economic rights.
Very sadly, the derivation, which is meant to benefit the host communities by way of building development projects there, never gets to them. Governors of oil producing states have decided to utilise the funds in other areas of the state.
These oil producing communities have been loud about the exploitation they have suffered from the Federal Government. They are denied access to the natural resources situated in their lands. They, therefore, ask the Federal Government to give them access to their God-given resources.
In line with the demands of the oil bearing communities, I urge the Federal Governmen to pay royalties directly to the communities or prevail on state governors to pay the 13 percent deviation to oil bearing communities.
Agbadam is a student of Eastern Polytechnic, Port Harcourt
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Empowering Youth Through Agriculture
Quote:”While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries”.
The Governor of Rivers State, Sir Siminalayi Fubara, recently urged youths in the Rivers State to take advantage of the vast opportunities available to become employers of labour and contribute meaningfully to the growth and development of the State. Governor Fubara noted that global trends increasingly favour entrepreneurship and innovation, and said that youths in Rivers State must not be left behind in harnessing these opportunities. The Governor, represented by the Secretary to the State Government, Dr Benibo Anabraba, made this known while declaring open the 2026 Job Fair organised by the Rivers State Government in partnership with the Nigeria Employers’ Consultative Association (NECA) in Port Harcourt. The Governor acknowledged the responsibility of government to create jobs for its teeming youth population but noted that it is unrealistic to absorb all job seekers into the civil service.
“As a government, we recognise our duty to provide employment opportunities for our teeming youths. However, we also understand that not all youths can be accommodated within the civil service. This underscores the need to encourage entrepreneurship across diverse sectors and to partner with other stakeholders, including the youths themselves, so they can transition from being job seekers to employers of labour,” he said. It is necessary to State that Governor Fubara has not only stated the obvious but was committed to drive youth entrepreneurship towards their self-reliance and the economic development of the State It is not news that developed economies of the world are skilled driven economies. The private sector also remains the highest employer of labour in private sector driven or capitalist economy though it is also the responsibility of government to create job opportunities for the teeming unemployed youth population in Nigeria which has the highest youth unemployed population in the subSahara Africa.
The lack of job opportunities, caused partly by the Federal Government’s apathy to job creation, the lack of adequate supervision of job opportunities economic programmes, lack of employable skills by many youths in the country have conspired to heighten the attendant challenges of unemployment. The challenges which include, “Japa” syndrome (travelling abroad for greener pastures), that characterises the labour market and poses threat to the nation’s critical sector, especially the health and medical sector; astronomical increase in the crime rate and a loss of interest in education. While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries.
While commending the Rivers State Government led by the People First Governor, Sir Siminilayi Fubara for initiating “various training and capacity-building programmes in areas such as ICT and artificial intelligence, oil and gas, maritime, and the blue economy, among others”, it is note-worthy that the labour market is dynamic and shaped by industry-specific demands, technological advancements, management practices and other emerging factors. So another sector the Federal, State and Local Governments should encourage youths to explore and harness the abounding potentials, in my considered view, is Agriculture. Agriculture remains a veritable solution to hunger, inflation, and food Insecurity that ravages the country. No doubt, the Nigeria’s arable landmass is grossly under-utilised and under-exploited.
In recent times, Nigerians have voiced their concerns about the persistent challenges of hunger, inflation, and the general increase in prices of goods and commodities. These issues not only affect the livelihoods of individuals and families but also pose significant threats to food security and economic stability in the country. The United Nations estimated that more than 25 million people in Nigeria could face food insecurity this year—a 47% increase from the 17 million people already at risk of going hungry, mainly due to ongoing insecurity, protracted conflicts, and rising food prices. An estimated two million children under five are likely to be pushed into acute malnutrition. (Reliefweb ,2023). In response, Nigeria declared a state of emergency on food insecurity, recognizing the urgent need to tackle food shortages, stabilize rising prices, and protect farmers facing violence from armed groups. However, without addressing the insecurity challenges, farmers will continue to struggle to feed their families and boost food production.
In addition, parts of northwest and northeast Nigeria have experienced changes in rainfall patterns making less water available for crop production. These climate change events have resulted in droughts and land degradations; presenting challenges for local communities and leading to significant impact on food security. In light of these daunting challenges, it is imperative to address the intricate interplay between insecurity and agricultural productivity. Nigeria can work toward ensuring food security, reducing poverty, and fostering sustainable economic growth in its vital agricultural sector. In this article, I suggest solutions that could enhance agricultural production and ensure that every state scales its agricultural production to a level where it can cater to 60% of the population.
This is feasible and achievable if government at all levels are intentional driving the development of the agricultural sector which was the major economic mainstay of the Country before the crude oil was struck in commercial quantity and consequently became the nation’s monolithic revenue source. Government should revive the moribund Graduate Farmers Scheme and the Rivers State School-to-Land agricultural programmes to operate concurrently with other skills acquisition and development programmes. There should be a consideration for investment in mechanized farming and arable land allocation. State and local governments should play a pivotal role in promoting mechanized farming and providing arable land for farming in communities. Additionally, allocating arable land enables small holder farmers to expand their operations and contribute to food security at the grassroots level.
Nigeria can unlock the potential of its agricultural sector to address the pressing needs of its population and achieve sustainable development. Policymakers and stakeholders must heed Akande’s recommendations and take decisive action to ensure a food-secure future for all Nigerians.
By: Igbiki Benibo
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