News

Confab: S’South Opts For 22.5%-50% Derivation

Published

11 years ago

July 9, 2014

L-R: Chairman, World Pension Summit for Africa, Mrs Grace Usoro; Co-chairman, World Pension Summit, Mr Harry Smorenberg; Acting Director-General of Pencom, Ms Chinelo Anohu-Amazu; President Goodluck Jonathan; Minister of Finance, Dr Ngozi Okonjo-Iweala; Co-chairman, World Pension Summit, Mr Eric Eggink and Chairman, Senate Committee on Pencom, Sen. Aloysius Etuk, at the World Pension Summit in Abuja last Monday.

At last, the National Conference, Monday and yesterday debated the thorny issues of resource control, derivation principle and devolution of powers, as it considered the report of its Committee of Devolution of Power, with South-South delegates opting for between 22.5 per cent and 50 per cent derivation.
As fervent debates flourished during the plenary session of the conference following conferees commencement of debate on the report of the Committee on Devolution of Power, expectations were high, and tension beclouded the plenary but the sagacity of the Conference Chairman, Justice Idris Kutugi, who presided, doused the tension.
The committee’s slim-volume submission, loaded with serious issues, focused principally on devolving power from the centre to the federating units; and the issue of resource control.
The report was however applauded by the delegates shortly after it was presented by the co-chairmen, the former governor of Akwa Ibom State, Obong Victor Attah, and the former Inspector General of Police, Alhaji Ibrahim Coomassie.
Critically examined in the report, whose recommendations would be subjected to vote by the conference later, were the issues of resource control, derivation principle, revenue sharing formula, and the development and exploitation of mineral resources nationwide.
The report also examined 68 items cited in the Second Schedule, Part One of the 1999 Constitution, which deals with the Exclusive Legislative List; and 30 items contained in Part Two of the Fourth Schedule bordering on the Concurrent Legislative List.
While most delegates from the South, particularly, the South-South and South-East said derivation should be increased from the present 13 per cent to between 22.5 per cent and 50 per cent, others suggested that it should be reduced further from 13 per cent.
Resource control, perhaps, was the most debated aspect of the report.
Each delegate, depending on where he or she comes from, wanted considerable level of control of resources in view of the adoption of true federalism by the conference while others said the issue did not arise as far as they were concerned.
Those who canvassed the view that states should control their resources said they did so in the spirit of devolution of power which allows the states to only pay taxes or make appropriate financial contributions to the Federal Government.
Others argued that mineral resources in Nigeria are owned in law by the Federal Government as contained in Section 44(3) of the 1999 Constitution, as amended.
Section 44(3) states that: “Notwithstanding the foregoing provisions of this section, the entire property in and control of all minerals, mineral oil and natural gas in, under or upon any land in Nigeria or in, under or upon the territorial waters and the Exclusive Economic Zone of Nigeria shall vest in the Government of the Federation and shall be managed in such manner as may be prescribed by the National Assembly.”
In its report, which is still subject to ratification by the conference, the committee said that after heated discussion on resource control, it unanimously agreed that the issue of derivation should rather be discussed instead of resource control.
It said its decision was informed by the emotive nature of the issue, which in the committee’s view was capable of destabilising the country.
On derivation, the committee said some delegates were of the view that derivation should be increased either in a quantum or gradual manner; while others were opposed to any form of increase.
Instead, some members had proposed the reintroduction of the off-shore/on-shore oil dichotomy in derivation payments; at the same time, while others kicked against it.
The committee said that even the abolition of intervention measures such as the Ministry of Niger Delta Affairs, Niger Delta Development Commission and the Amnesty Programme were robustly discussed.
After long debates which spanned four days, the report indicated that a consensus was reached on the issue to the effect that the status quo be maintained in order to avoid upsetting the existing peace and equilibrium in the polity, which it described as a product of years of political engineering and craftsmanship.
On fiscal federalism which basically deals with how revenues are generated and distributed among the federating units in the federation, the committee concluded that the powers conferred on the Federal Government to keep custody of and determine the terms and manner of fund allocation from the Federation Account negate the principles of fiscal federalism.
The committee spotted what it called imbalance in favour of the Federal Government in the sharing formula, and maintained that the imbalance has adversely affected the performance of the federating units, and therefore asked for a review.
It recommended that the powers of the Federal Government under Section 162(3) of the 1999 Constitution, as amended, to prescribe the terms and manner of sharing national revenue should be exercised through the Revenue Mobilization, Allocation and Fiscal Commission (RMAFC).
The committee argued that RMAFC should at the same time consult the federal and state governments before presenting a draft bill on the matter to the National Assembly for enactment into law.
On vertical revenue sharing, which deals with how revenue is disbursed to federating units, the committee emphasised the need for equilibrium between the central government and the federating units, comprising states and local governments.
It said that it conducted examination of specific development challenges of states and local governments, and concluded that to a great extent, rapid economic and social development could be achieved in the country if the percentage of revenues allocated to states and local governments were reviewed upwards.
It recommended that the sharing formula for funds accruing to the Federation Account among the three tiers of government should be: Federal Government 42.5 per cent instead of the present 52.68 per cent; state governments 35 per cent instead of the current 26.72 per cent; and the local governments 22.5 per cent to replace the current 20.60 per cent.
The committee further recommended that the percentage given to population and equity of states in the existing sharing formula be reduced while that assigned to social development factor should be increased to a higher percentage to ensure accelerated development of all parts of the country.
The proposed sharing formula by the committee is based on: diminished emphasis on principles of equality of states and population; increased emphasis on social development factor; and internally generated revenue.
On mines and minerals including oil fields, oil mining, geological surveys and natural gas, the committee recommended that they should be retained on the Exclusive Legislative List as specified in the 1999 Constitution but should be amended to read thus: “The governments of states where the mining activities take place shall be involved in matters relating thereto; (and that) the government of the federation shall create a special fund to develop mines and minerals in states where such resources are undeveloped.”
According to the committee, the overriding need to bring all other mineral resources of the country, hitherto undeveloped, into the mainstream development by activating National Strategic Plan for exploitation of minerals to boost their contribution to Gross Domestic Product (GDP), were considered in making this recommendation.
Still on mineral development, the committee recommended a constitutional provision for the establishment of a Special Fund for the development of mineral resources in the country.
It further proposed that 4.5 per cent of the total revenue accruing to the federation should be devoted to this special fund when established.
In addition, the committee wants the Special Fund to be in the form of a Venture Capital Fund, advising that a competent body should be established to administer the fund according to the guidelines that shall be specified by the National Assembly.
Before the presentation of the committee’s report to plenary, a delegate, Professor Awalu Yadudu, addressed the conference to “state his own part of the story” on the raging controversy of “consensus group and the existence of position paper”.
Yadudu debunked insinuations that he was primed to “scatter” the conference as claimed by another delegate but rather insisted that his decision to opt out of the consensus committee was informed by the fact that most of the decisions adopted in the position paper presented to plenary were not part of the recommendations of any committee.
Earlier, an elder statesman, Chief Edwin Clark, had addressed the conference, and harped on the need to put the interest of the country above sectional and personal interest.
Clark expressed regret that the consensus committee constituted to resolve contentious issues that may arise in the course of adoption of the recommendations of committees was “scattered” midway.
The Ijaw leader said he was sad that issues that could scatter or dent the credibility of the conference were being raised close to the end of the parley.
He said everyone must understand that Nigeria “is made up of equal citizens. Nobody is superior to the other. We came to this conference in order to have consensus on contentious issues.”
He appealed to delegates to see the National Conference as an ample opportunity to contribute their quota to the task of reforming Nigeria.

Justus Awaji, Abuja

News

RHI: First Lady Gives N50m Business Grants To Rivers PWDS, Disabled Veterans …As RGS Unveils Free Medical Services For Vulnerable Persons

Published

1 day ago

December 5, 2025

The Tide

Nigeria’s First Lady, Senator Oluremi Tinubu, has extended a major financial lifeline to Persons with Disabilities (PWDs) and disabled veterans in Rivers State.

The support comes under the Renewed Hope Initiative (RHI) Social Investment Programme, a nationwide economic empowerment effort.

The event, held on Wednesday at the Banquet Hall of the Government House, Port Harcourt, coincided with the 2025 International Day of Persons with Disabilities, with the theme: “Fostering disability inclusive societies for advancing social progress”.

Wife of the Rivers State Governor, Lady Valerie Siminalayi Fubara, who represented the First Lady of Nigeria, presented the small business grants to the beneficiaries.

The RHI empowerment effort covers all 36 states, the Federal Capital Territory (FCT), and the Defence and Police Officers’ Wives Associations (DEPOWA).

Each jurisdiction will have 250 PWDs receive a N200,000 Business Recapitalisation Grant per beneficiary, amounting to N50million. In total, with N1.9 billion being disbursed to 9,500 PWDs across Nigeria.

Expressing delight at unveiling the programme under the RHI Social Investment Framework, Senator Tinubu noted that the launch was intentionally scheduled for the International Day of Persons with Disabilities.

She emphasised the administration’s commitment to inclusive growth, stating that the nation becomes stronger when all citizens are empowered to contribute.

According to the First Lady, “Our commitment to improving lives has also been demonstrated through various interventions in

Agriculture, Economic Empowerment, Education, Health, and Social Welfare, aimed at improving the well-being of families across our country. To all our beneficiaries, I encourage you to make good use of this opportunity.”

Mrs Tinubu said that the programme aligns with the Renewed Hope Agenda of President Bola Ahmed Tinubu, which seeks to promote inclusive growth and shared prosperity by ensuring that no Nigerian is left behind, especially those whose needs are often overlooked.

She announced that the RHI Governing Board has approved making the Economic Empowerment Programme for PWDs an annual event every December 3.

She thanked the Governor of Rivers State, Sir Siminalayi Fubara; and his wife, Lady Valerie Fubara, for their support, and encouraged the beneficiaries to make good use of the opportunity.

In her speech, Wife of Rivers State Governor, Lady Valerie Siminalayi Fubara, assured that the Renewed Hope Initiative in the State will collaborate with the National Commission on Persons with Disabilities to promote an inclusive society where the rights and privileges of persons with disabilities are guaranteed.

She said that the celebration of the 2025 World Disability Day, reaffirms the government’s commitment to create a more just, inclusive, equitable and sustainable State, where no one is left behind.

Lady Fubara also delivered a strong message of empowerment to the beneficiaries, saying “You are not defined by limitations. You are defined by your strength, your creativity, your persistence, your brilliance, and your unique contribution to this State.”

She urged society to champion inclusion, noting that disability is not a tragedy but that discrimination, silence, and exclusion are.

The governor’s wife confirmed that 250 beneficiaries in Rivers State received the N200,000 grant, and urged all the beneficiaries to utilise the funds wisely.

“Let it be a seed that grows into something greater; a business that sustains you and your family,” she said.

Also speaking, Executive Secretary, Rivers State Contributory Health Protection Programme, Dr Vetty Agala, announced the enrollment of the 250 persons with disabilities into the state’s contributory health protection programme, adding that the beneficiaries will now enjoy free medical care and services at primary, secondary and tertiary levels in the State.

“You’re going to not only access primary care, but anytime you require secondary or tertiary services, you will be referred to those levels of care at no extra cost,” in line with the government’s “Health For All Rivers Initiative,” she said.

In her own remarks, Permanent Secretary of the Rivers State Ministry of Social Welfare and Rehabilitation, Mrs. Lorenta Davis-Dimkpa, stated that efforts are underway to establish a South-South office for the Disability Commission.

She also confirmed that there was an ongoing work to domesticate the 2018 Disability Act.

In her goodwill message, former Justice of the Supreme Court, Justice Mary Odili (rtd), commended both the Federal and Rivers State governments for taking bold steps to ensure persons with disabilities are included in governance.

Earlier in her speech, the State Coordinator of the Renewed Hope Initiative, Hon Tonye Briggs Oniyide, had said that the programme was carefully designed to address the needs of persons with disabilities and disabled veterans, helping them upscale their businesses across the State.

Speaking on behalf of the beneficiaries, Kie Obamanu, called for the full implementation of disability laws to eliminate discrimination.

He expressed gratitude to Nigeria’s First Lady and the wife of the Rivers State Governor for their support.

Highlight of the event was the presentation of the Universal Health Coverage Ambassador Award to Lady Valerie Fubara by the Rivers State Ministry of Health, in recognition of her contributions to improving access to healthcare services in the State.

News

Fubara Assures Greater Collaboration With Navy

Published

1 day ago

December 5, 2025

The Tide

Rivers State Governor, Sir Siminalayi Fubara, has assured greater collaboration with Navy and other security agencies in combatting crimes and criminality in the State.

The governor also hailed the appointment of Vice Admiral Idi Abbas as the Chief of Naval Staff, saying he will deliver on his mandate based on his track record of excellence and meritorious service.

Fubara gave this assurance when Abbas and his team paid the governor a courtesy call at the Government House, Port Harcourt, yesterday.

The governor also commended the efforts of the Nigeria Navy in tackling criminality on Rivers waterways and protecting critical national assets.

He emphasized the need for more security surveillance on Rivers State coastal environments to safeguard lives and properties.

According to him, the Navy’s superior technology, manpower, and tactical competence are vital to protecting the state’s vast waterways.

“We need to work together for us to succeed,” he said, stressing that collaboration remains the most effective way to keep residents, assets, and the environment safe.

Pointing out the strategic significance of Rivers State as the hub of Nigeria’s crude oil and coastal infrastructure, Fubara commended the Navy for its continuous efforts in preventing losses to lives, livelihoods, and the ecosystem, and assured the service of the government’s sustained cooperation and support.

On his part, Abbas said his visit was part of a nationwide tour aimed at assessing operational readiness across naval formations since assuming command on October 30, 2025,

The new Naval Chief noted that Rivers State hosts several critical energy installations that fall under the Navy’s mandate to protect, adding that the state also remains central to the Navy’s training operations, with several key units located within its territory.

Abbas commended Governor Fubara for the State’s consistent support, citing the provision of six gunboats and the donation of a school building as significant contributions that have boosted the Navy’s operational efficiency.

He appealed for continued collaboration as the Navy intensifies efforts to secure the maritime domain.

Taneh Beemene

News

Fubara Tasks Traditional Rulers On Peace, Security …Says Education, Job Creation ‘ll Receive Boost In 2026 Budget

Published

1 day ago

December 5, 2025

The Tide

Rivers State Governor Sir Siminalayi Fubara has declared that amidst glaring challenges, his administration has remained determined and focused to dispense good governance and put in place the needed development in the State.

The governor disclosed this while addressing the 123rd and 124th combined quarterly general meeting of the Rivers State Council of Traditional Rulers at the Council Secretariat on Monday.

Fubara who commended the traditional rulers for their supports and efforts in promoting peace and development in the State, urged them to live up to their roles as custodians of peace by becoming alert and more vigilant in their domains to tackle the menace of insecurity especially in boundary communities.

He advised the traditional rulers to work with local government chairmen and security agencies to safeguard lives and properties in their domains.

“Let me thank everyone of you from the bottom of my heart, I met you in Government House to say a big thank you, because the royal fathers stood as fathers in our most trying moments.

“I say thank you again for your support, for understanding that your role is fatherly role, and one of the reasons you were elected or selected to be head is to bridge the gap in terms of crisis, and to play fatherly role when called upon. Thank you for ensuring that peace reigns in Rivers State,” he said.

The governor reaffirmed his commitment towards the protection of lives and property in the State.

“Our vision is to ensure that Rivers State is safe, our vision includes the provision of good health care services, which we are doing, the records are there, people from the south east are witnessing what is happening in the Zonal Hospital in Bori, presently. I’m sure that before the end of this year, the Omoku and Ahoada Zonal Hospitals will be commissioned while Degema is 80% completed, we’re not just talking, we’re doing it,” he said.

Fubara, however, dismissed speculations making the rounds on the issue of 10,000 jobs, urging the public to discountenance the false information.

He assured that employment will be carried out in the state based on needs, and not on political considerations.

He disclosed that the 2026 budget will make provision for job creation and the refurbishment of schools in the State which, he noted, are currently in deplorable conditions, having given due consideration to roads and the health sector.

“Let me use this medium to address an issue, I saw some people sending messages to my WhatsApp, they want to protest against 10,000 jobs, they claim was included in the budget, which budget? We are going to employ based on the needs of the state, I’m not going to employ politically to please anybody,” he assured.

The governor promised to address the requests of the traditional rulers, and charged them to ensure that their meeting brings out a strong position that will make the State stronger.

Earlier in his welcome address, the Chairman of the Rivers State Council of Traditional Rulers, and Eze Oha Apara 1V, of Apara Kingdom, HRM Eze Chike Amadi Worlu-Wodo, thanked the governor for personally attending the meeting.

The royal father restated the support of the traditional rulers to the State Government, and presented some requests of the Council to the governor.

“Your Excellency, the news that we have received all over the State is quite cheering and symbolic of the peaceful life and developments that Rivers people yearn for in the State. You have brought back those glorious old days of harmonious living and peaceful coexistence the way it was. May the Almighty God bless you and help you to sustain this laudable feat,” the royal father prayed.

In his remarks, the State Commissioner for Chieftaincy Affairs , Egnr.Charles Amadi, expressed gratitude to the governor for his developmental strides in the State, and also commended the traditional rulers for their unwavering commitment towards promoting peace in the State.