Group wants direct payment of derivation fund to oil-producing communities | The Guardian Nigeria News - Nigeria and World News

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In a statement signed by the chairman and secretary, James Njoku and Amb.

A Bodo resident tries to separate crude oil from water in a boat at a waterway polluted with oil. PHOTO Pius Utomi Ekpei/AFP/Getty Images

Lucy Ikiriko, respectively, the group described the continued payment of the revenue allocation through state governors as “illegal,” with oil and gas being on the Exclusive Legislative List. The leaders appealed to President Buhari to direct the relevant federal agency, to cease forthwith, the payment of the 13% derivation fund through state governors, but pay it through the Presidential Derivation Committee and State Implementation Committee to the communities.

“13% derivation fund is a benchmark recognized by section 162 of the 1999 constitution as amended. ‘Provided the principle of derivation shall be constantly reflected in any approved formula as not been less than 13% of the revenue accruing to the Federation Account directly from any natural resources’.

“It is illegal and unconstitutional to pay the 13% derivation fund which is the first-line charge through state governors third line charge on the Federation Account, according to Section 162 of the 1999 constitution as amended.

 

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