S’South Govs Seek Derivation Principle, Fiscal Federalism

Rising from its first ordinary session, South- South Governors under the aegis of BRACED Commission (Bayelsa,Rivers,Akwa-Ibom, Cross River, Edo and Delta) demanded for the upward review of derivation principle and the introduction of fiscal federalism.

The demand was part of the communiqué issued Wednesday in Calabar at the end of the meeting attended by the governors of  the  six states.

Chairman of the commission and Governor of Cross Rivers State, Senator Liyel Imoke who read the communiqué said the demand had become necessary owing to the environmental degradation and pollution in the Niger Delta occasioned by oil exploitation which has adversely affected fishing and farming activities.

“The governors regretted the attempt to link the increasing insecurity in parts of the country to the issue of 13 per cent derivation and consider it unfortunate and misplaced,” the communiqué said.

The South-South governors questioned the rationale of not exploiting other mineral deposits in different parts of the country while depleting the oil and gas reserves of the region.

They however, stated that “the introduction of fiscal federalism and resource control would encourage each state of the federation to control its resources and develop in accordance with its capability”.

The South-South governors equally “reaffirmed their support for the position of the Nigerian Governors’ Forum that the revenue allocation formula should be reviewed to give more money to states and local governments as well as devolve more powers and responsibilities to the constituent states for rapid development”.

On the second South-South Economic Summit, the governors affirmed that the summit would take place from April 26-28, 2012 and commended the efforts of BRACED Commission and the Delta State sub-committee for the event.

They extended invitations to the private sector, especially those in the region to participate in the summit scheduled for Asaba, Delta State which would focus on development, investment and security.

The Divisional Director, South territory for Globacom, Mr Charles Odiase launching the GBAM Hi five Tariff in Port Harcourt, last Friday