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DESOPADEC: Ijaw Leader Wants Upward Review Of Derivation Funds

Source: thewillnigeria.com
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President of the Federated Niger Delta Ijaw Communities (FNDIC), Chief Bello Oboko, has called for the upward review of the derivation funds accruing to Delta State Oil Producing Areas Development Commission (DESOPADEC).

Oboko, who made the call in a position paper on the ongoing efforts to amend the DESOPADEC law, alleged that oil producing communities were being cheated with the current 13 percent derivation funds and therefore called for an upward review of the percentage accruing to the state oil commission.

He lamented that oil producing communities are being deprived of a major percentage of the derivation funds accruable to the state.

According to the Ijaw leader, the derivation fund ought to be 75 percent against the percentage the state government often releases to the state oil commission.

“This is no longer acceptable. Let the amendment now raise the derivation funds to 75 percent in keeping with the contemplated increase in the percentage of the funds in the Principal Law,” he posited.

Besides, he said that the Federal Government's target in the statutory disbursement of the 13 percent derivation funds was the oil producing communities/areas.

According to him, oil producing communities/area extends to five nautical miles from the point of production.

Oboko further said that production quantum should be the basis for all DESOPADEC engagements in furtherance of the derivation principle which determined the amount of funds expected to be paid to Delta State.

He posited that production quantum should first reflect in the ethnic constitution/representation in the Board of DESOPADEC which, according to him, will ensure the application of the principles of production quantum in all of the commission's engagements.

The Ijaw leader advocated a representation profile of two Itsekiris, two Ijaw, two Urhobo, one Isoko, one Ndokwa membership of the DESOPADEC Board.

He also advocated the setting aside of 25 percent of the funds to be proportionately split into ethnic accounts for investment purposes as oil is a depleting resource.