13% Derivation: Oil Communities Demand Direct Payment

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 162[2]of 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.

L-R: Permanent Secretary, Ministry of the Federal Capital Territory, Mr John Chukwu; another personality; Vice-President Namadi Sambo, President Goodluck Jonathan and Minister of State for FCT, Oloye Olajumoke Akinjide, during Eid-el-Kabir Homage to the President in Abuja, yesterday