Oil Revenue: Host communities should be given 13% derivation – Ex- Minister

By Tunde Opalana

Former minister of Health, Architect Gabriel Aduku has made case for an increase in revenue given to host communities in oil producing areas.

He, therefore appealed to President Bola Tinubu to ensure that the 13% revenue derivation given to oil producing states should be extended to communities bearing oil and other mineral resources.

In a statement on Wednesday, she advocated for direct payment of such monies to the communites.

Aduku who was an elected member of the Abacha’s Constitutional Conference between 1994 to 1995 also served as chairman of the Revenue Allocation committee at the Confab.

“So for this particular 13% revenue derivation Formula I will appeal to the president of the country to ensure that the governors have nothing to do with it,” said Aduku.

He charged President Tinubu with his wealth of experienced in governance as a two term governor of Lagos State, a former senator to reconsider the implementation and ensure that the host communities benefit directly.

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He said “the implementation of these should be strictly put together. The governors will have nothing to do with the derivation of thirteen percent fund that is in the constitution, its for all the communities that are affected.

Speaking in implementation, he said the derivation is good but implementation had been a problem.

“Many of the governors thereafter saw money and they would look at what to do, they would prefer to do the things themselves rather than give it to the people that are affected for the purpose for which it is derived.

“So that has been wrong, it became a major problem and one of the problems in Nigeria since the 13% derivation came into law during the administration of Obansanjo in particular.

“We have seen what some governors have done with it and it encourages them to aspire to become President of Nigeria since they have money now. They use money making a factor for democracy so unfortunately it’s one of the evils that have eaten up this country.

“But it can be simply managed if only there is sincerely of purpose in the people. So I submit again that the derivation factor is a blessing to Nigerians, and in all other considerations it affects the people, because governance is about the people, not about individuals, how much one can make out of it, or how much their friends made out of it,” he said.

According to Aduku, Implementation of ideas or critical decisions for the progress of this country has been bedeviled overtime and it appears to continue to get worse. “So my candid input is that we should ensure that that particular 13% is allocated to the communities, by identifying the communities and putting an instrument, a management instrument that will be composed of people of integrity within the communities.

“And when they put themselves together they should constitute their leadership themselves, and such leadership can only be supervised by the government of the State and that of the federation on how that resource of thirteen percent is used within the communities.

“The interesting thing is that discussion were taken, we made an agenda for it and more of it was amicably discussion all through.

Cardinal among the issue is the decision which is the derivation factor. Derivation factor from our search and researches has been on even during the self government of Northern Nigeria, western Nigeria, Eastern Nigeria and so on.

“Derivation were being applied to manage resources. We found out that derivation is important and so it should come to play in what we are doing.

“So in the course of our meetings and so on the 13% derivatives formula became necessary for the areas of oil production of which at that time were mineral contributing states substantially to the nation’s economy.

He said the approval was given and it was organised and members of the committee travelled to the oil bearing areas in Port – Harcourt in the South South, Warri for a physical visit to the sites where we can observe for ourselves the extent of damage the exploration has caused the people, the pollution of the natural water, the damage to the arable lands and so on

He said after their trip they settled to discuss the issue of 13% derivation as basis for revenue allocation.

According to him, the Olu of Warri at that time after they explained their mission to him and what they had done so far, asked what the committee had seen.

“He provided an aircraft to come or one of those oil expert to come and take to go and see more.

“That’s how he provided for us and got the oil companies to aid us to see these sites and that’s why we were able to fly over areas where the oil exploitation was carried out, including areas where gas flaring took place and we could see the effect.

“We flew round and in fact came as near as certain points where they were habitations within the area of this gas flaring. We saw people living in some kind of islands on top of the river.

“The effect of the oil was very obvious on the water. So we had the opportunity of seeing quite a bit of what was going on, and it made our discussion a little more fascinating for everyone that was in the committee, in the sense that we could appreciate the difficulties that people who lived in those areas were facing.

“Their water polluted, their atmosphere polluted. So there’s definitely need to take care of these people who by nature are already living in that area. They were pockets of agricultural activities but you could see certain areas where the agricultural activities were also affected by the oil spillage all around.

“This is not to talk of the open naked water that is polluted, and that’s where they drink water from. So we could imagine their difficulties. By the time we came back through Ajaokuta, because the same Olu of warri provided us an aircraft which could land on water and on ground.

“So it was easy for us to come back through Ajaokuta, so we landed on river Niger in Ajaokuta, at the Julius Berger’s port.

“It was amazing for the members. Most of the members had never really travelled South to see things, not to talk of with an aircraft that lands on water and then goes like a boat to the port, and then drop us and went back.

“By the time we met at Ajaokuta and reviewed the situation in Ajaokuta we could only sympathize that Nigeria has the opportunities, but are we tidying them up?. It made our discussion, again a lot easier with full attention of my members most of the time.

“We got a resolution that says final resolution apart from details. It is to say that for all, the Revenue Allocation will be based on derivation.

“The derivation factor we arrived at was, not less than 13% of the minerals produced in that area which should go back to service the people.

“That is the ultimate aim. Looking at the sufferings of the people. The first set of governors that were to utilise the place was shortly after Abdulsalam’s administration. And when they got in there was derivation factor of course had gone in and it should go to the states that are affected that’s how it was simply put.