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Nigeria: Oil Communities Mount Pressure for Direct Disbursement

Oil producing communities in Rivers State Wednesday joined the clamour for the direct payment of 13 per cent derivation fund to the communities rather than the state government.In a letter to the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), a copy which was obtained by THISDAY, the communities agitated for the setting up of a National Derivation Committee to oversee further disbursements.

The letter, signed by 14 leaders of the communities, the group also proposed the setting up of state management committee for the funds to ensure it is received by the National Derivation Committee and disbursed to the states.

It said: “The National Derivation Committee will not award contracts but will supervise and monitor the use of the 13 per cent derivation fund on constant basis in all the state management committees. The state management committees will execute the project and services for the oil and gas producing committees.”

Continuing, it said: “The chairman and members of the National Derivation Committee shall be appointed by Mr. President on the advise of the leaders of the oil and gas producing communities of Nigeria including a member of RMAFC while each state will select the chairman and members of the state management committee.”

The communities further warned that they reserved powers to sanction any erring or defaulting member of any of the committees, adding that there would be enough checks and balances in the administrative committee system.

The group said the proposed administrative committee system had been used in the past by the Federal Government to implement derivation fund to oil and gas producing communities. It said: “The 1.5 per cent derivation was never paid through any state government account, it was utilised through the administrative committee system. This is our renewed position on the direct payment of 13 per cent derivation fund to oil and gas producing communities.

This is the best option which will ensure greater sense of belonging and patriotism in the oil and gas producing communities for greater participation in the protection of the oil facilities and flow stations that bring the 13 per cent derivation fund.”

Source: This Day

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Reporting Oil and Gas project was launched on 4th June 2009atTakoradi, Western Region, Ghana by Penplusbytes (PPB – www.penplusbytes.org) with the vision of providing a one stop online information and knowledge about Ghana’s oil and gas sector
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