Editorial

Time To Account For 13% Derivation Refunds

Published

3 years ago

November 25, 2022

How did the other South-South states, aside from Rivers, expend their arrears of the 13 per cent derivation refunds that were illegally deducted from the oil-producing states by the Federal Government since 1999? That is the tough question on the lips of some stakeholders mostly in the affected states.
This came after the startling revelation by the Rivers State Governor, Chief Nyesom Wike, that Nigeria’s President Muhammadu Buhari authorised and paid the arrears to Rivers, Bayelsa, Delta, Edo and Akwa Ibom States. Wike spoke on the development last Friday during the inauguration of the N17 billion Port Harcourt Campus of the Nigerian Law School.
Responding to those who had been seeking to know how the Rivers State Government was able to obtain funds to execute projects many of which are being inaugurated or commissioned, Wike replied that President Buhari’s gesture was the major source of revenue for his projects, including the flyovers, the law school, the cancer centre, among others.
Hear him: “Monies that were not paid to the Niger Delta states since 1999 mainly 13 per cent deductions, the President approved and paid all of us in Niger Delta states.” Wike had reiterated a similar remark at two separate events afterwards. Following the disclosure, stakeholders have begun to ask their governors questions on how they spent or are spending their allocations of the money.
Now that the Rivers State Chief Executive has let the cat out of the bag, some of his fellow governors in the region have come out of their comfort zones to offer explanations or tell cock-and-bull stories better told to the marines. This divulgence indicates that Wike is truly fighting for the masses, even though he stands the risk of making more enemies for himself.
Speaking on the matter through his Chief Press Secretary, Olisa Ifeajika, the Delta State governor, Ifeanyi Okowa, said the state had drawn only N30 billion from its accrued share of N270 billion from the 13 per cent derivation arrears. He said his administration opted to access its share through a bridge finance loan of N150 billion from a bank. The Delta governor declared that since the Federal Government could not pay the money in bulk, the oil-producing states agreed for some part of it to be disbursed within three years and the other within five years.
Some Bayelsa stakeholders took to social media over the slow pace of development amidst considerable resources. The big question on their lips has been what happened to Bayelsa’s stake in the money paid by the Federal Government? Similar questions are asked by residents of Akwa Ibom and Edo States. While some have threatened to use the Freedom of Information (FoI) Act to compel their government to account for the money, others have called for a probe into the seemingly looted funds.
Astonishingly, some governors in the Niger Delta could receive such a tremendous amount of money in these hard times yet decline to pay salaries and pensions regularly. In some affected states, infrastructure is decrepit and development is apprehended. While Governor Wike has been building flyovers and executing other developmentally-oriented projects in his state with the windfall, the question is, what have the other governors who got a similar treasure-trove been doing with theirs?
It is time transparency and disclosure were enforced in the administration of the 13 per cent derivation by state governments. Reportedly, eight states have been benefiting from the scheme. The eight oil-producing states received about N6.589 trillion from the federation account under the derivation principle, between 2009 and 2019. Sadly, there has been little or nothing to show for such allocation in some beneficiary states as agitations for benefits continue among the people directly impacted by oil production.
For states receiving derivation payments, translucency is even more key, given the history of state governors’ management of these funds. That way, the temptation to yield to corruption risks is reduced, wasteful spending is curtailed and oil-producing communities have a greater chance of getting these funds to work in their interest.
Governor Wike deserves commendation for exposing the non-performing governors in the crude oil and gas-rich Niger Delta region, who collect huge derivation funds and arrears but without any corresponding projects on the ground to justify the allocations. But for his bringing the situation to limelight, many would not have been aware of it. The other governors in the region must ensure that their funds reflect massive developmental and infrastructural projects, as seen in Rivers.
We hail President Muhammadu Buhari for authorising the payment of the funds to the deserving states and not playing politics with it, particularly since the benefiting states are virtually in the opposition Peoples Democratic Party (PDP). This is an abiding testimony to the President’s political maturity and his commitment to the tenets of democracy and the rule of law. As can be seen, Buhari’s release of the money has enabled the Rivers governor to embark on more projects in the state.
Unfortunately, the 13 per cent derivation which is a form of royalty for mineral owners has been hijacked for political expediency rather than meeting the needs of the host communities. There must be a paradigm shift away from political expedience in the use of the funds to employing it to maximise the social and economic welfare of the oil-producing communities in particular and the state in general.
An energy expert and former adviser at Nigeria Extractive Industries Transparency Initiative (NEITI), Garuba Dauda, said extractive revenues face a huge utilisation challenge at both national and subnational levels in Nigeria. He stressed that there were far-reaching accountability gaps in the management of oil revenues at both national and subnational levels of government, especially the 13 per cent derivation.
Accountability remains key if benefit transfer must get to the citizens. The need to imbibe and integrate corporate best practices in the oil and gas industry in Nigeria must include holding the state governments accountable for disbursement of the 13 per cent derivation funds. Oil-producing communities in derivation-receiving states must be seen to be enjoying the dividends of the derivation.

Editorial

No To Political Office Holders’ Salary Hike

Published

4 days ago

September 22, 2025

The Tide

Nigeria’s Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has unveiled a gratuitous proposal to increase the salaries of political and public office holders in the country. This plan seeks to fatten the pay packets of the president, vice-president, governors, deputy governors, and members of the National and State Assemblies. At a time when the nation is struggling to steady its economy, the suggestion that political leaders should be rewarded with more money is not only misplaced but insulting to the sensibilities of the ordinary Nigerian.

What makes the proposal even more opprobrious is the dire economic condition under which citizens currently live. The cost of living crisis has worsened, inflation has eroded the purchasing power of workers, and the naira continues to tumble against foreign currencies. The majority of Nigerians are living hand to mouth, with many unable to afford basic foodstuffs, medical care, and education. Against this backdrop, political office holders, who already enjoy obscene allowances, perks, and privileges, should not even contemplate a salary increase.

It is, therefore, not surprising that the Socio-Economic Rights and Accountability Project (SERAP) has stepped in to challenge this development. SERAP has filed a lawsuit against the RMAFC to halt the implementation of this salary increment. This resolute move represents a voice of reason and accountability at a time when public anger against political insensitivity is palpable. The group is rightly insisting that the law must serve as a bulwark against impunity.

According to a statement issued by SERAP’s Deputy Director, Kolawole Oluwadare, the commission has been dragged before the Federal High Court in Abuja. Although a hearing date remains unconfirmed, the momentous step of seeking judicial redress reflects a determination to hold those in power accountable. SERAP has once again positioned itself as a guardian of public interest by challenging an elite-centric policy.

The case, registered as suit number FHC/ABJ/CS/1834/2025, specifically asks the court to determine “whether RMAFC’s proposed salary hike for the president, vice-president, governors and their deputies, and lawmakers in Nigeria is not unlawful, unconstitutional and inconsistent with the rule of law.” This formidable question goes to the very heart of democratic governance: can those entrusted with public resources decide their own pay rises without violating the constitution and moral order?

In its pleadings, SERAP argues that the proposed hike runs foul of both the 1999 Nigerian Constitution and the RMAFC Act. By seeking a judicial declaration that such a move is unlawful, unconstitutional, and inconsistent with the rule of law, the group has placed a spotlight on the tension between self-serving leadership and constitutionalism. To trivialise such an issue would be harum-scarum, for the constitution remains the supreme authority guiding governance.

We wholeheartedly commend SERAP for standing firm, while we roundly condemn RMAFC’s selfish proposal. Political office should never be an avenue for financial aggrandisement. Since our leaders often pontificate sacrifice to citizens, urging them to tighten their belts in the face of economic turbulence, the same leaders must embody sacrifice themselves. Anything short of this amounts to double standards and betrayal of trust.

The Nigerian economy is not buoyant enough to shoulder the additional cost of a salary increase for political leaders. Already, lawmakers and executives enjoy allowances that are grossly disproportionate to the national average income. These earnings are sufficient not only for their needs but also their unchecked greed. To even consider further increments under present circumstances is egregious, a slap in the face of ordinary workers whose minimum wage remains grossly insufficient.

Resources earmarked for such frivolities should instead be channelled towards alleviating the suffering of citizens and improving the nation’s productive capacity. According to United Nations statistics, about 62.9 per cent of Nigerians were living in multidimensional poverty in 2021, compared to 53.7 per cent in 2017. Similarly, nearly 30.9 per cent of the population lives below the international poverty line of US$2.15 per day. These figures paint a stark picture: Nigeria is a poor country by all measurable standards, and any extra naira diverted to elite pockets deepens this misery.

Besides, the timing of this proposal could not be more inappropriate. At a period when unemployment is soaring, inflation is crippling households, and insecurity continues to devastate communities, the RMAFC has chosen to pursue elite enrichment. It is widely known that Nigeria’s economy is in a parlous state, and public resources should be conserved and wisely invested. Political leaders must show prudence, not profligacy.

Another critical dimension is the national debt profile. According to the Debt Management Office, Nigeria’s total public debt as of March 2025 stood at a staggering N149.39 trillion. External debt obligations also remain heavy, with about US$43 billion outstanding by September 2024. In such a climate of debt-servicing and borrowing to fund budgets, it is irresponsible for political leaders to even table the idea of inflating their salaries further. Debt repayment, not self-reward, should occupy their minds.

This ignoble proposal is insensitive, unnecessary, and profoundly reckless. It should be discarded without further delay. Public office is a trust, not an entitlement to wealth accumulation. Nigerians deserve leaders who will share in their suffering, lead by example, and prioritise the common good over self-indulgence. Anything less represents betrayal of the social contract and undermines the fragile democracy we are striving to build.

Editorial

No To Political Office Holders’ Salary Hike

Published

4 days ago

September 22, 2025

The Tide

Editorial

Rivers’ Retirees: Matters Arising

Published

3 weeks ago

September 8, 2025

The Tide

The Rivers State Government deserves commendation for the manner in which it conducted the last biometric exercise for pensioners in the state. For the first time in many years, the verification process was not only efficient but also humane, a development that has brought relief to a category of citizens that often bears the brunt of neglect.

Unlike previous verification exercises that left pensioners exhausted and unattended, the latest exercise set a refreshing precedent. Retirees were given proper and sumptuous meals, and in addition, the government paid the sum of N10,000 into their accounts to cushion their transportation costs. Such gestures go a long way in demonstrating that those who had laboured for the state are not forgotten in their twilight years.

The measure was particularly necessary given that some pensioners had to travel long distances to reach their verification centres. For elderly men and women, such journeys come with physical and financial strain. By recognising these realities and easing the burden, the government has shown that pensioners deserve dignity, not disdain.

Beyond this laudable act of consideration, the authorities must reflect on the very structure of pension verification. The era of compelling retirees to be physically present for routine verification should be reconsidered. With digital tools and innovation, the government can adopt systems that capture and confirm data without the stress of physical assembly. This is crucial for pensioners residing in other states or even abroad.

While we acknowledge the importance of verification in cleaning up pension records, we cannot ignore the darker side of the matter. It is regrettable that some allowances continue to be paid to deceased pensioners, with relatives fraudulently collecting the funds. The latest biometrics, thankfully, exposed some of these sharp practices. The exercise, therefore, is not only about order but also about justice.

We urge families of deceased pensioners to be patriotic enough to inform the government of the deaths of their loved ones. It is deeply shameful that in some instances, individuals attempted to impersonate late pensioners during the biometrics. Such behaviour undermines the spirit of honesty and deprives genuine retirees of their due entitlements.

The exercise also revealed another important area of concern: the health of pensioners. It is reassuring to learn that the state government has reportedly promised to take over the medical treatment of some retirees who arrived for the biometrics in critical condition. This is a step in the right direction. Elderly citizens, after years of service, should have access to special health care facilities in the state. Setting aside hospitals or designated centres for the aged is not just desirable but necessary.

While pension payments in Rivers State have remained consistent, attention must now be directed towards gratuities. Senior citizens deserve to receive their retirement benefits without the bureaucratic hitches that have often marred the process. After years of loyal service, nothing is more demoralising than to see retirees languish for want of their gratuities. Every worker, as Scripture reminds us, is worthy of his wage.

Retirement, in any civilised society, should not be reduced to a sentence of suffering. In dealing with pensioners, government must consistently wear a human face. The humane manner displayed during this verification exercise should not be a one-off. It must become the norm in all dealings with retirees. Measures must continually be put in place to ensure that they do not feel abandoned by the state they served.

One welcome innovation has already been introduced. The Sole Administrator of Rivers State, Vice Admiral (Rtd) Ibok-Ete Ekwe Ibas, has altered the method of gratuity payment. Pensioners now receive their monies directly into their bank accounts, eliminating the cheque-based system that for years served as fertile ground for corruption. This reform is both pragmatic and forward-looking. Similarly, the implementation of the N32,000 pension harmonisation is also commendable.

Direct payments gratuities ensure transparency and drastically reduce the possibility of diversion of funds. More importantly, they restore confidence in the system and assure pensioners that their entitlements will reach them without interference. In this way, the government has not only safeguarded the process but also upheld the principle of accountability.

Seamless gratuity payment has a ripple effect on the workforce as a whole. When workers are confident that retirement will not plunge them into hardship, the temptation to falsify age in order to remain in service is eliminated. Such reforms, therefore, enhance efficiency, honesty, and productivity in the public service.

In sum, the Rivers State Government has struck a refreshing chord in its handling of pension verification. It has shown empathy, innovation, and accountability. However, the momentum must be sustained, and the focus must shift towards modernising verification methods and prioritising retirees’ welfare in health, gratuity, and dignity.

When retirees are treated with compassion and fairness, the message to those still in service is clear: faithful service to the state will not go unrewarded. The humane verification exercise, though a single event, offers a hopeful glimpse of what governance can look like when people, especially the elderly, are placed at the heart of policy.