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Oil Communities Demand Direct Payment Of 13% Derivation Fund - LEADERSHIP

JULY 07, 2020

By Jonathan Nda-Isaiah 

Ogulagha oil and gas producing communities forum has asked President Muhammadu Buhari to pay host communities  13 per cent derivation fund directly.

Chairman of the forum, Elder  Timi Johnson in a statement said several trillions of naira allocated to the  region/oil producing  communities in the name of 13 per cent derivation funds ends up in private pockets.

He further explained that it is illegal and unconstitutional to pay the 13 per cent derivation fund, which is first line charge through state governors’ third line charge on the federation account, according to Section 162 (2) of the 1999 constitution as amended.

He said that the constitution made it very clear that 13 per cent derivation fund is provided constitutionally and exclusively for the oil/gas producing communities primarily, as compensation for loss of fishing rights and productive farmlands as a result of oil/gas exploration and production activities.

“We are happy that allocating 13% derivation funds through the Proposed Presidential Derivation Committee (PDC) and States Implementation Committee(SIC) will put paid to the multitrillion naira frauds that has occurred in the regime of the funds allocations that has resulted in wastage of over 44 trillion naira.

“As leaders  of our community  we believe that His Excellency  will use his fatherly position to direct  the relevant government  agencies to do the needful as refusing to do same  will compel  our people to apply self-help,” he added.


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