Oil producing areas demand presidential derivation commission

23 May 2016, Yenagoa – Oil-bearing communities drawn from the 10 oil and gas producing states and seven impacted areas, on Sunday demanded a Presidential Derivation Commission to effectively manage the 13 per cent fund accruing to the states every month.

*Dr. Ibe Kachikwu speaking on the recent fuel price increase.

*Dr. Ibe Kachikwu, Minister of State for Petroleum

The fresh call, it was gathered, might not be unconnected with the perceived mismanagement of the funds which are currently directly under the control of the respective state governors.

Many communities where these oil revenues are drawn; in many cases do not have basic amenities while their sources of livelihood, including fishing and farming have been destroyed in the process of exploiting the raw material.
Rising from a meeting, the Host Communities of Nigeria Producing Oil and Gas, HOSCON, urged the federal government to set up the commission to directly administer the funds to the affected communities.
In a communiqué signed by Mr Monday Whiskey, Director of Media and Publicity, on behalf of the National Executive of the body led by Dr Mike Emuh, the oil-producing communities also demanded the quick passage of the Petroleum Industry Bill into law.
Among others, the states also requested the federal government to urgently release the cumulative Gas Flare Penalty Levy accruing to them.
The host communities have always argued that since they bear the direct consequences of gas flare, the penalty paid by the multinational oil companies should not be paid into the Federation Account to be shared by the entire country.
‘’ HOSCON also resolves and urges the federal government to urgently release the gas flare penalty levy just as it advocates the establishment of a presidential derivation commission (PDC) to solely manage the 13 per cent derivation funds’’, the communities noted.
Aligning with recent calls for a fair redistribution of ownership of oil wells in the Niger Delta, HOSCON noted that, ‘’ a new oil blocs sharing formula that must take into cognisance the local content act and the natural law of equity’’, should henceforth be agreed upon.
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