Again, North kicks against Derivation Fund
The
proposal by the northern socio-political group, the Arewa Consultative
Forum, that all littoral states should not be favoured in the derivation
fund, has again pitted the North against the South-South.
The ACF made its position known while commenting on the Petroleum Industry Bill and in memoranda on the constitution amendment.
The group said that the proceeds from offshore oil exploration should not be included in the Derivation Fund.
But oil-producing communities, who are angered by the ACF proposal,
said the northern body’s position was borne out of ignorance and
insensitivity.
The ACF National Publicity Secretary, Anthony Sani, in an interview with SATURDAY PUNCH,
said the forum was opposed to parts of the PIB and the constitution,
which made it compulsory for offshore oil companies to compensate host
communities.
The forum insisted that there was no basis for using proceeds from
the off-shore oil exploration in the calculation of derivation in the
revenue formula.
The North, Sani said, would support any measure that was capable of
reducing the hardship of the people of the oil-producing communities,
who suffer from environmental degradation.
He said, “The ACF has not changed its position on derivation. We
believe derivation is meant to compensate for degradation of environment
for oil exploration or reward for efforts of communities. The ACF has
no problem with that.
“But when it comes to offshore exploration of oil, which destroys
no environment of any communities (who have not tended the oil in the
ocean either), there is no basis for using or including proceeds from
such off-shore exploration in the calculation of derivation in the
revenue formula.”
But prominent organisations in the Niger Delta, the Ijaw National
Congress, the Ijaw Youth Congress and the Ijaw Republican Assembly,
described the ACF position as the height of insensitivity to the plight
of the oil-producing communities.
INC secretary, Robinson Esite, said the offshore oil wells were seriously affecting the environment of littoral states.
He said the statement credited to the ACF only portrayed the group as
lacking knowledge of offshore oil locations and the littoral states.
He said that it was a fact that states were described as littoral because they opened to the sea.
The INC secretary argued that littoral states suffered serious
environmental threats from offshore oil production contrary to the claim
in the report attributed to the ACF.
He urged the National Assembly to ensure that the derivation fund for offshore was not only retained, but increased.
Esite called on members of the National Assembly from the South-South
to educate Nigerians about the challenges facing the oil-producing
states.
He said the representatives of the Niger Delta must ensure that the people of the area were effectively represented.
Esite stated, “It (ACF’s call) shows their level of ignorance because
the offshore oil locations open up to the littoral states, and so, they
are even more affected by oil exploration activities. This is the
reason why we are saying that they are ignorant. Their knowledge of the
offshore oil wells and location is very low.
“What makes the states littoral is because they open to the sea. It
is because communities that are affected by offshore oil exploration do
not have the voice to speak on the impact of such activities on them,
that some people are making these types of remarks. The people
representing them in the National Assembly should rise to the task of
adequate representation of the people.
“It is the failure of adequate representation that led to the arms
struggle in the Niger Delta and we cannot risk another of such struggles
any longer.”
Similarly, the National President of the IYC, Mr. Abiye Kuromiema,
said that the revenue accruable from the Federation Account was not even
enough to mitigate the hazards of oil production in the communities.
Kuromiema, who accused the ACF of insensitivity, challenged the
North to exploit its environment for economic development instead of
depending on oil proceeds.
The IYC president stated, “They are also expressing insensitivity to
the plight of the people; they should go and exploit their environment
and convert it to economic gain and stop depending on oil revenue. They
should go and exploit and develop their resources.
“They should be ashamed that they are not exploiting the full
resources of their environment but rather depending on oil resources
from other places. This is still the continuing expression of
insensitivity on the part of these people.”
Spokesperson for the IRA, Ms. Annkio Briggs, said the argument was baseless and devoid of reason.
She wondered whether the members of the ACF calling for a review of
the revenue allocation formula against the littoral states did not read
about the adverse effect of the Bonga Oil spill on the host communities.
She warned that the Niger Delta might be compelled to opt out of the
Nigerian federation amid the conspiracies and frustrations from groups
like the ACF.
“This type of argument is about all the conspiracies that these
people have formed against the Niger Delta. How can you say that the
Bonga spill did not affect the Niger Delta?
“The simple answer is that the people that are directly affected by the oil production may go their different ways.
“And then, they will allocate part of the land in the Niger Delta for
cattle rearing. They should come and inherit part of the devastation.
The International President of the Community Watch Nigeria, Chief
Samingo Etukakpan, said the offshore oil exploitation and exploration
had immensely affected aquatic life.
He said the people of the region depended on the sea for their livelihood.
Etukakpan said, “Exploration and exploitation have caused a lot of
damage to our ecosystem. We are no more having fishes that we are
supposed to have; we don’t have crayfish and all those other specimens
we used to have from the seas, we are no more having them.
“The acid rain is on our soil. Our soil is no more fertile; all these
are as a result of oil exploration and exploitation. You cannot plant
now to have a good harvest both in the sea and on the land. Our seas are
no more yielding the results as they supposed to, and we are dying of
poverty, because most of our people are fishermen and farmers.
“We don’t have anything to do again as a result of these oil
exploration and exploitation. Where we are supposed to be fishing is
where the oil companies are carrying out their exploration and
exploitation.
“In the case of oil spills, they go right into the hinterland, not
only stopping at the ocean. They should even be asking that we be given
50 per cent of the income from oil derivation from the area.
“In the time of cocoa and groundnut, the regions affected were given
50 per cent. They should sympathise with us, otherwise they would be so
insensitive not to support our cause.”
Also, a group in the North-Central, Afonja Descendant Union, Kwara State, said the call by the ACF was unfair.
The President of the group, Alhaji Olola Kasumu, said the principle
of derivation on the revenue sharing formula with reference to offshore
oil exploration should be retained in the constitution.
In an interview with SATURDAY PUNCH in Ilorin, Kasum said people of the Niger Delta would suffer if littoral states were stopped from benefiting from oil proceeds.
He said, “It is not bad for it (derivation principle on revenue
sharing formula as concerns offshore oil exploration) to be retained for
what it is going to be used for. It is for the benefit of some of the
people in the country. They should allow it to be there.
“The major aim of the constitution is to provide convenience to all
people in the country. So, if some people are suffering because of the
constitution, then the constitution is faulty; so, they should not
remove the derivation formula from it.”
