Resource Control, Derivation Split Confab …As Conference Okays Land Use Act

The twin contentious issues of resource control and derivation principle caused a rowdy session at the plenary of the National Conference yesterday, as delegates were sharply divided on them and only came short of engaging each other in fisticuffs.
The plenary session, therefore, ended without a final decision on critical issues of revenue sharing formula from the Federation Account and derivation principle, although a consensus group had earlier recommended 18 per cent derivation for the South-South, 5 per cent for exploration of minerals across the country and another 5 per cent for reconstruction of North-East Zone ravaged by Boko Haram insurgency.
Although the consensus committee’s recommendation was presented on Wednesday by Prof. Ibrahim Gambari, members of the Consensus Committee derived from the six geo-political zones to find a middle ground to the contentious issue of derivation formula did not, however, reach an agreement on the issues before Gambari’s presentation.
At yesterday’s plenary, the leader of the Northern group on the committee and former Inspector General of Police, Alhaji Ibrahim Coomasie, fired the first salvo when he announced that the committee was yet to reach an agreement on the contentious issues.
A resolution of the committee earlier submitted by Chief Raymond Dokpesi and later read to the delegates by Chief Olu Falae, who represented the South-West on the committee, was greeted with disapproval by some delegates.
Falae said the committee did agree that the principle of derivation shall be constantly reflected in any approved formula as being not less than 18 per cent of the revenue accruing to the Federation Account directly from any natural resources.
He said it was also agreed that not less than 50 per cent of the total derivation fund accruable to a mineral bearing state shall be due and payable to the host communities within the state where the resources are derived in accordance with the production quota contributed by such communities.
Amidst the shout by a number of the delegates, Falae announced that an aspect of the decision was that there shall be established a Solid Mineral Development Fund which is currently 3 per cent but which would be increased to 5 per cent of the revenue accruing to the Federation Account.
He said a National Intervention Fund which would be 5 per cent of annual revenue accruing to the account of the Federal Government for the stabilization, rehabilitation and reconstruction of areas affected by terrorism and insurgency, starting with the North-East, and then any other part of the country affected by the insurgency.
Faced with obvious rowdiness from a cross-section of the delegates who variously disagreed with the presentations by both Coomasie and Falae; and applause from another section that seemed to also variously agree with the two presentations, Conference Chairman, Justice Idris Kutugi decided to adjourn sitting till Monday.
After a brief consultation with the principal officers, he announced that the leadership of the conference would meet with selected delegates referred to as the ‘50 Wise Men’ in a bid to resolve the contentious issues.
Justice Kutigi said in addition, all the chairmen, co-chairmen and deputy chairmen of the 20 committees that handled different assignments for the conference should also attend the meeting.
However, before the adjournment, conference had considered and adopted certain aspects of the report on Devolution of Power, including the recommendation that granting public holidays should be moved from the Exclusive to the Concurrent Legislative List.
In adopting the recommendation through a unanimous decision, conference said this would give states the latitude to declare holidays reflective of the values of their own people.
Conference also accepted the recommendation that management of prison services be retained in the Exclusive Legislative List as specified in the 1999 Constitution. The same was done to fishing and fisheries other than those in rivers, lakes, waterways, ponds and other inland waters within Nigeria.
Also retained in the Exclusive Legislative List are insurance, stamp duties and formation, annulment and dissolution of marriages other than marriages under Islamic Law and Customary Law, including matrimonial causes.
Moved from Concurrent to the Exclusive Legislative List is the first item on the Concurrent Legislative List which deals with allocation of revenue and division of public revenue between states and the federation, between states and states and between states and local governments.
The merger of Items 6, 15, and 24 which all relate to banks, banking, exchange control, bills of exchange, currency, coinage, legal tender and promissory notes, was also approved and adopted for placement in the Exclusive Legislative List.
Other issues left in the Exclusive Legislative List are taxation of income, profits and capital gains; trade and commerce while other aspects of Trade and Commerce particularly, registration of business was moved to the Concurrent List.
The committee also recommended that regulations of political parties be retained in the Exclusive Legislative List as specified in the 1999 Constitution as amended. Pensions, gratuities and other-like benefits payable out of the Consolidated Revenue Fund or any other public funds of the federation are to be split between the Exclusive and Concurrent Legislative Lists.
In one aspect, retirees previously employed by the Federal Government are entitled to payment of their benefits by the Federal Government while state governments shall have exclusive jurisdiction over the pension matters of their own employees and retirees.
The committee also recommended the retention of Traffic of Federal Trunk roads in the Exclusive Legislative List as specified in the 1999 Constitution.
Meanwhile, the controversy surrounding the retention or otherwise of the Land Use Act which raged at the presentation of the report of the National Conference Committee on Land Tenure Matters and National Boundary has finally been nipped in the bud as the conference has voted for its retention in the Constitution.
While voting for its retention, the conference resolved that however, certain amendments would be carried out in certain sections of the Act.
The conference noted that one of such amendments would enable land owners to determine the price and value of their land while allowing government to negotiate with land owners and not compensate them.
The whole argument for the retention of the Act in the 1999 Constitution was based on the belief that allowing the Act to go would give chance for oligarchs to take over lands which the Land Use Act has democratized with the government as the intervening body.
Supporters of this school of thought had argued that since land is not a renewable commodity, it must not be left at the mercy of land speculators; and that removing it from the Constitution would be discriminatory and unjust to the poor.
It was their position that removing the Act from the Constitution would create dichotomy; describing the suggestion as a grand design for the rich to buy land at cheap prices, a situation they said would lead to crisis that cannot be managed.
However, the others argued that the Land Use Act should remain a law but must be removed from the Constitution to make it easy for amendment.
They argued that at present, amending the Act through the Constitution has become too cumbersome and that in other countries, land tenure is universal while governments nearest to the communities serve land tenure better.
They complained that governments have taken peoples’ land and have refused to pay compensation; and that since the promulgation of the Act, access to land has remained a major problem, thus hindering economic development.
It was also stated that the power of compulsory acquisition vested on state governors has been, in most cases, used arbitrarily without the payment of adequate compensation to land owners.
The committee noted that both sides of the argument were convincing; unfortunately none of them agreed with the other and no side agreed to back down.
Thus, in its decision which was accepted by the conference, it was stated that the Act would be retained in the Constitution while certain amendments would be carried out in certain sections of the Act.
It was also resolved that the customary right of occupancy in Section 21 of the Act be amended to read “Customary Right of Occupancy should have the same status as statutory Right of Occupancy, and should also be extended to urban land”.
It was further agreed that Section 7 of the Act which deals with the restriction on rights of persons under the age of 21 to be granted statutory right of occupancy should be amended to read “restriction of persons under the age of 18”. This, it was argued, is because the Child Rights Act stipulates that a person attains adulthood at the age of 18.
With the decision on the issue of the Land Use Act, the report of the Committee on Land Tenure Matters and National Boundary was formally adopted, as amended.
Meanwhile, the South-West delegates at the National Conference have denounced the report of the Consensus Group, presented by Prof. Ibrahim Gambari on resolving the impasse on derivation principle last Wednesday in Abuja.
The Consensus Group made up of leaders from the six geo-political zones had proposed 18 per cent derivation to the oil-bearing states, five per cent first line charge for the development of mineral resources and another five per cent National Intervention Fund in Boko Haram devastated areas in the North East, as well as other areas affected in North Central and North West.
The Yoruba delegates, arising from a caucus meeting, rejected the report, stating that the report gave a wrong impression of what the intervention fund was set to achieve.
They argued that the fund is aimed to serve the collective interest of the country and not a sectional interest as presented by Pro. Gambari.
According to Secretary, South-West Delegation to the 2014 National Conference, Dr. Kunle Olajide, South-West delegates view Gambari’s projected amount as a depletion of the federation account through nebulous funds to promote insurgency in the country.
They also argued that the position is aimed at legalising the impoverishment of non-oil bearing states in South-West, South-East and South-South, as these states, neither benefit from derivation nor the so-called intervention fund.

Justus Awaji, Abuja

Rivers State House of Assembly Deputy Whip, Hon Irene Inimgba (left) moving a motion to support the Deputy Leader of the House to adjourn the sitting last Monday. Photo: Chris Monynanaga