Derivation Fund: PANDEF Demands Increase From 13% To 50%

The Pan Niger Delta Forum (PANDEF) has called on the federal government to increase the derivation fund accruing to oil producing states in the country from 13 percent to 50 percent.

It reminded the government that when the revenue from cocoa, groundnut and palm produce as well as coal were the mainstay of the nation’s economy, derivation in the revenue allocation principle was not less than 50 percent.

PANDEF, in a communique issued at the end of its stakeholders’ meeting held his Zoom, noted that the extant 13 percent derivation has not been reviewed for 22 years, despite the constitutional provision for review of revenue allocation every five years, to reflect changing economic realities.

The communique, which was made available to LEADERSHIP in Port Harcourt, was signed by the group’s National Chairman, Senator Emmanuel Ibok Essien, the National Publicity Secretary, Hon. Ken Robinson and four others.

It described the alleged plot to remove the principles of derivation from the country’s Constitution as ‘satanic’ and ‘coup’ against oil producing states and regions in the country.

The communique reads in part: “Following the Richard’s Constitution of 1946 and Macpherson’s Constitution of 1951, Derivation Principle became a major factor in Revenue Allocation in Nigeria. As was reflected in both the 1960 Constitution and the 1963 Constitution.

“That the principle of derivation as encapsulated under the proviso to Section 162 (2) of the 1999 Constitution (as amended), was aimed at providing recompense to the producers of any natural resources for the expropriation and sequestration of their rights to control and manage same, by the Nigerian State.

“That when revenues from cocoa (in the West), groundnut (in the North), and Palm Produce and Coal (in the East) were the nation’s economic mainstay, derivation in the Revenue Allocation principle was not less than 50 percent.

“That it is not only against the principles of fairness, equity and justice but atrocious and wicked to contemplate deleting derivation principle from the Nation’s Constitution.

“Therefore, the meeting unequivocally, and in full resolve, condemns the obnoxious and Satanic Bill intended to delete Subsection 2, Section 162 of the 1999 Constitution (as amended) and describes the Bill as a “Legislative Coup” against Oil and Gas Producing States and Regions of the Country.

“The meeting notes that the extant 13% derivation has not been reviewed for 22 years, despite the constitutional provision for review of revenue allocation every five (5) years, to reflect changing economic realities.

“Consequently, demands an immediate increase of the 13% derivation to 50%.
That, the position of the Niger Delta People is 50% derivation, and nothing less.”

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