Omo-Agege laments diversion of 13% derivation fund by oil-producing states

The Deputy Senate President, Ovie Omo-Agege, has deplored the diversion of the 13 percent oil derivation funds by oil producing states.

He called for 100 percent utilisation of the funds for oil-bearing communities, as against the practice where states release only 50 percent of the money to development commissions in their states.

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Omo-Agege spoke when he hosted a delegation of Oil and Gas Host Communities of Nigeria (HOSCON), led the Amayanabo of Twon-Brass in Brass Kingdom and Chairman, Bayelsa State Traditional Rulers Council, Chief Alfred Diete-Spiff.

He noted that, since host communities bear the burden of environmental degradation from the oil industry, it was only fair that all funds be channeled into the development of the affected areas.

He said the diversion of the money had contributed gravely to the underdevelopment of the region as the affected communities could hardly boast of having access to the basic necessities of life.

“It is fair that the 13 percent derivation is meant to ameliorate the conditions of the people who are most impacted by oil exploration and exploitation.

“That is the only reason this fund was set aside as a consequence of your agitation which you led for so many years.

“These funds are not meant for the state governments.

“The state governments are meant to be purveyors to host communities.

“Even in states that have development commissions, they only earmark 50 percent of the funds to the Commission to manage on behalf of the host communities.

“So what happens to the other 50 percent?

“We have always taken the position from the outset that 100 percent of the funds is meant for the development of host communities because it is not every area that suffers from oil exploration and degradation.

“But for some reasons, it has become a political tool,” Omo-Agege was quoted as saying in a statement by his spokesman, Yomi Odunuga.

Earlier, the Senior Special Assistant to the President on Niger Delta Matters, Senator Ita Enang, called on the Deputy President of the Senate to intervene in the N98 billion gas flare fund, the controversy surrounding the Pipeline Surveillance Contract, 13 percent derivation payment to oil producing communities and the need to pass a bill for the establishment of a Derivation Commission.