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Buhari promises to look into 13 percent derivation for oil states

President Muhammadu Buhari says his administration will look into the 13 percent derivation benefit to the Niger Delta region.

President Muhammadu Buhari says his administration will look into the 13 percent derivation benefit to the Niger Delta region.

Buhari gave the promise when he received a delegation of Isoko traditional rulers led by Ovrawah, Omogha 1, Odiologbo of Oleh, at the presidential villa on Friday.

WHAT IS 13 PERCENT DERIVATION?

  • It is the fund set aside to assist oil-producing communities tackle infrastructural decay and degradation. The 1995 constitutional conference recommended that in sharing the federation account revenue, 13 percent should be set aside to assist the development of oil-producing communities. That is 13 percent of the total oil revenue should be in the hands of the oil-producing states. The recommendation was accepted but not implemented. The percentage allocated to derivation remained at one percent of oil revenue.

“I have listened attentively to your address and I will still update myself with details of development in your area as it relates to oil and gas, and lack of infrastructure,” Buhari said.

“I will look at the constitutional 13 percent derivation and what previous governments have done, in order to know what we can do. I will revisit your address and ask for clarification. I will do my best on this issue.”

On his part, Iduh Amadhe, spokesman of the traditional rulers, asked the president to establish a gas plant and a modular refinery in the land.

Amadhe said the establishment of refinery would create jobs and generate income and that would better the lives of the people of the region and a country as a whole.

The rulers appealed to the president to direct Ibe Kachikwu, minister of state for petroleum, to call on the Nigerian National Petroleum Corporation (NNPC) to commence production in the Isoko Section of OML 28-Uzere east to increase government revenue.

They also called on the government to tackle insecurity across the country.

Dyepkazah Shibayan :