A Review of the Nigerian Energy Industry

Derivation Fund: Oil producing communities in Ondo demand direct payment

Dayo Johnson

13 February 2013, Sweetcrude, Akure — OIL Producing Communities in Ondo State have demanded for direct remittance of the oil mineral Derivation Fund to them by the Federal Government.

Representatives of oil communities in the two coastal councils of Ilaje and Ese-Odo, under the aegis of the state branch of Oil and Gas-Producing Communities of Nigeria, OGPCN, from Ondo State, after a meeting in Akure, appealed to the Federal Government to follow the provision of the Constitution to the letter.

In a communiqué by Ondo OGPCN Chairman, Chief Adewale Omojuwa, and the Secretary, Dr. Soji Omowole, the communities said “We haveresolved that the 13 percent Derivation Fund as established under Section 162 (2) of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), should be released to oil and gas-producing communities.”

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  • This is undoubtedly a vote of no confidence on the state government’s management of the 13% derivation fund statutorily allotted. Rather than dismiss these calls, we urge the state governments to revisit the sheer lack of attention these communities have been subjected to.