Daily Trust (Abuja)

Nigeria: Oil Communities Demand Body to Run 13 Percent Derivation

Henry Omunu

26 September 2008


Port-Harcourt — Oil and gas producing communities in Rivers State have canvassed for the establishment of a commission that would be responsibile for administering the 13 per cent derivation that accrues to the state from the federation account.

Chairman of the Oil and Gas Producing Communities Association of Nigeria, Rivers State chapter, Mr. Watson Ibinabobo made the demand yesterday, when the association presented a petition to the Justice Kayode Eso truth and reconciliation commission.

Ibinabobo appealed to the commission to prevail on the administration of Governor Chibuike Amaechi to establish the Rivers State Oil Development Commission to manage the 13 per cent derivation and provide infrastructure to the poor oil and gas producing communities in the state.

He told the panel that already, other oil producing states like Ondo, Delta, Edo and Imo States have established such a commission with their communities benefiting tremendously from the activities of the commission.

"The establishment of the commission has led to tremendous socio-economic growth and development in those states and the issues of youth restiveness have reduced in the states mentioned.

"Similarly, the commission has impacted directly and positively on the lives of the people at the rural communities, adding that the 13 per cent is meant for only communities where oil and gas exploration activities take place as against the current practice in Rivers State where the state government solely manages the derivation proceeds.

According to Ibinabobo, the association had in 2007, prepared a bill seeking to establish the commission to former Governor Peter Odili, but regretted that the bill which was subsequently forwarded to the state house of assembly for consideration has not seen the light of day.

Be the first to Write a Comment!

Copyright © 2008 Daily Trust. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.



Sign up for FREE daily 'top headlines' by email »


SELECT
SELECT
SMS President Obama