A Review of the Nigerian Energy Industry

Derivation formula: S-South group demands resource control

Emma Amaize

09 March 2012, Sweetcrude, WARRI- FOLLOWING the call by the north for a review of the 13 per cent derivation to the oil producing states, the Ijaw Youth Welfare Association, IYWA, says the oil states no longer want the peanuts called 13 per cent derivation, but resource control.

National coordinator of the group, Alaowei Cleric in a press statement in Warri said, “We wish to inform them that the oil- producing states are done with the peanuts called “13 per cent derivation, the core demands of the Niger-Delta people is resource-control and not 13 derivation”.

“It is rather annoying that northern leaders are causing injury to the wound the nation is yet to cure. This is the greatest disappointment of ACF and the Northern Governors’ Forum to shamelessly demand that the inadequate 13 per cent derivation to the oil producing states should be reduced”.

“ACF and the Northern Governors’ Forum, which should be concerned in proffering solution to the menace of the Boko Haram insurgency in the north, are ingloriously surfacing on the pages of newspapers to argue on what they have no single knowledge of how it’s extracted.

“In fact, we wish to send a note of warning to the ACF and its acolytes that under no condition shall the Niger-Delta be ready to argue or negotiate with those cankerworms on the allocation of the oil revenue. We are not ready for any of such debate with those parasites whose business is to milk the nation’s coffer dry without giving back,” he said.

“What northern governors should be concerned with is to look for ways they can improve the economy of this country. They should engage those jobless youths fomenting trouble in the north under the guise of Boko Haram in commercial farming, instead of sitting in Government Houses to make unprofitable argument after looting their treasuries dry.”

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  • Emeka

    ACF should put ınto consıderatıon the revenues allocated to the southeast and southwest who aren’t complaınıng about. but rather channel theır energy towards solvıng the ınsecurıty that have bedevılled the nothern part of country. As for Ijaw congress ıt ıs pertınent to note that natural resources found wıthın the country belongs to the government and not people resıdent ın the area. That ıs a dact we must all realıze.

  • Whats the fuss?? If a country can just order a cut in an aegerd price then why should the company be forced to accept it? There are dozens of other suppliers, including generic ones which will be more than happy to supply an alternative to Novo. You either believe in a free market or you do not.