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Reps To Consider Increase In Derivation Fund From 13% to 50%

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By Gloria Ikibah
The House of Representatives is set to consider a constitutional amendment bill which is aimed to increase the derivation fund from the current “not less than 13 per cent” to “not less than 50 per cent”, to ensure the development of all Nigerian states and regions where mineral resources are being extracted.
The bill which was sponsored by Rep. Awaji-Inombek Abiante and 8 other lawmakers has been deferred for debate on Tuesday at plenary.
The decision by Speaker Tajudeen Abbass was arrived at when some lawmakers pleaded to be given copies of the bill to study when the bill was read for second time at plenary on Wednesday.
The bill seeks to alter section 162(2) of the 1999 constitution by deleting the words ‘not less than thirteen percent’ and inserting ‘not less than fifty percent’.
According to the general principle of the bill made available to Naijablitznews.com, the proposed piece of legislation is in response to the clamor of the present administration to righting the wrongs of previous regimes and by ensuring the practice of true federalism.
The sponsors of the Bill argued that the initiative is in tandem with the dream of the founding fathers of Nigeria.
They argued: “Let us indeed renew the hope not only of our founding fathers but also that of generations after us by the unanimous endorsement to review quickly and to amend the formula to not less than fifty percent (50%) according to the Independence Constitution of 1960 and the Republican Constitution of 1963 in Sections 134 {1 (a &b)} and 140 {1(a & b).
“It is noteworthy to add that including all revenues from VAT in this sharing arrangement will enhance competition among the states for increased productivity by making their environment friendlier for investment in order to increase their revenue. This is in tandem with the spirit of equity and justice.
“There has been discovery of one billion barrel of crude oil and gas in North-Eastern part of the country along the Chad Basin in neighboring Bauchi and Gombe states; there are gold fields in Zamfara, Niger, Osun, Kwara, Ebonyi, Kaduna, Edo and Bauchi states and also the FCT; tin mining in Plateau and Nasarawa state among others.
“The truth is, every state in Nigeria is endowed with mineral resources and this bill seeks to ensure that states and regions where these minerals are extracted from also have their revenues allocated according to the 50% derivation formula”.
Rep. Abiante argued that the current formular of revenue sharing renders the collective wisdom of our patriots/statesmen and their intellectual wisdom worthless.
He said: “The current ‘not less than thirteen percent’ derivation entrenched in the 1999 Constitution is grossly inadequate and a mis-representation of the Spirit of pre-independence negotiations and agreements.
“Even in the intent and desire to ensure the rehabilitation and development of the damaged environment where mineral resources (liquid, gaseous and solid) are derived for the sustenance and development of the whole country does not also seem achievable with the current practice of 13%.
“This Bill is not all about resource control but an attempt to address the myriads of issues bordering on the meager “not less than 13%” derivation fund payable to states on revenues derived from their environment as provided for in Section 162(2) of the 1999 Constitution of the Federal Republic of Nigeria as (amended).
“It is important to state that this amendment is not only relevant for today, but also for the future. Some of us may feel that this section that we seek to amend makes no meaning to them, because, their states are not presently affected. But it is pertinent to ask, what about the future?
“Let us remember that every state in the Federal Republic of Nigeria is blessed with abundant natural resources capable of turning the economic fortunes of the country. The increased interest by Federal Government to reduce the dependence on oil and gas as the mainstay of our economy means attention will be shifted to the solid minerals”.
The lawmaker further stated that the huge environmental impacts of the exploitation of natural resources on the host communities are devastating, including pollution, hunger, insecurity and youth restiveness.
“The meager ‘not less than 13%’ derivation as presently provided for by the 1999 Constitution of the Federal Republic of Nigeria encourages Illegal exploitation and mining of our natural resources. It is said he whose parents provides enough food does not bring disgrace to his parents by fighting for food outside. It is a truism that rich parents who do not provide enough food for their children despite having them in abundance can only encourage such children to pilfer from them.
“The illegal refineries that litter the entire Niger Delta region and illegal mining sites across some other parts of Nigeria are reflections of non-commitment of enough funds for the development of these areas.
“The deployment of enough funds means more development in terms of social, economic and security infrastructures. The various State Governments’ ability to build industries will keep the restive youths engaged and away from crimes, especially from the illegal mining and exploitation of natural resources.
“The eradication of illegal mining will mean more money for the Federal and the State governments to share for development purposes, besides the energy and the resources used in chasing and closing illegal operators would be channeled to fast-track the development and protection of the region and indeed any part of the Federation as presently is where mineral resource or any revenue is gotten for the running of the business of Governance, hence the urgent need to increase the derivation fund from “not less than thirteen percent” to “not less than fifty percent”.
“This menace of oil theft has become a threat to our national security and economy, hence the recent tour of the Niger Delta region by the National Security Adviser, Mallam Nuhu Ribadu, Chief of Defence Staff, Minister of Defence, Minister of State for Petroleum Resources, Chief of Air Staff on the 26th of August, 2023 with the strong determination to fight illegal refineries.
“The revenue allocation formula as previously enshrined in both the Independence and Republican constitutions will certainly resolve this issue and make for greater patriotism and a sense of commitment from all. This sense of patriotism will reduce or totally eliminate oil theft and illegal mining as constantly reported.
“It will also make for greater development hinged on healthy competition as witnessed in the pre-independence Nigeria and the First Republic where we had the famous Cocoa House, the University of Ibadan, the University of Nigeria, Nsukka, the University of Ife as it was then called, the famous groundnut pyramid in Kano, the foundation for the eventual establishment of the Ahmadu Bello University, the Western Nigeria Television and several others”.
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Fuel Under-Dispensing: PETROAN Orders Members To ‘Check’ Meters Nationwide

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PETROAN said it summoned an emergency meeting with its National Executive Council after the NMDPRA raised the fuel under-dispensing issue.

The Petroleum Products Retail Outlets Association of Nigeria (PETROAN) has directed its members nationwide to immediately inspect their dispensing meters following concerns raised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) over under-dispensing of petroleum products at retail outlets.

 

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PETROAN National President, Billy Gillis-Harry, disclosed this on Wednesday during an interview on Channels Television’s The Morning Brief programme.
He said the association summoned an emergency meeting with its National Executive Council on Tuesday after the NMDPRA raised the issue, with the meeting lasting until about 10 pm.
“PETRON circulated a message around the country, calling our members to check their meters as quickly as possible,” Gillis-Harry said.

He added that several members had already begun inspecting their equipment, stressing that faulty meters could result in either under-dispensing or over-dispensing.

“Equipment can be faulty over time because of usage,” he said, recalling that he had previously lost money in his own retail business because a faulty meter was dispensing more fuel than customers paid for.

Gillis-Harry assured motorists that PETROAN members would continue to ensure that customers receive the quantity of fuel displayed on the pump.

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“But I can tell you that PETRON members will, at all times, insist on making sure that they sell their products one litre for one litre,” he said.

The PETROAN President also urged motorists to pay attention to the quantity displayed on dispensing meters while buying fuel and to request receipts for their purchases.
He explained that customers should know the capacity of their vehicle’s fuel tank and compare it with the quantity displayed on the dispenser.
“Oftentimes, we educate our staff to call the attention of the patron to check the meter while it is being dispensed. And also to get the customer to check after the product has been dispensed,” he said.

According to him, PETROAN also works with the Weights and Measures Division of the Ministry of Industry, Trade and Investment and the NMDPRA to ensure that dispensing meters remain functional and accurate.
“PETRON consistently works with the Weights and Measures Division of the Ministry of Trade and Investment, and also the NMDPRA. These are the two regulatory authorities that ensure that our meters are functional. And they are up to date and accurate,” he said.

The NMDPRA has warned filling station operators against under-dispensing petroleum products, with outlets found short-changing consumers liable to sanctions, including the revocation of their operating licences.
Gillis-Harry said PETROAN had taken the regulator’s concerns seriously and had begun working with its members to address any possible faults.

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“But we took what the NMDPRA called our attention to yesterday very seriously. And we already started working on that,” he said.

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Iranian Children Return to School After Months of War Disruption as New Academic Year Begins

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TEHRAN — Millions of Iranian children returned to classrooms on Wednesday as schools across the country reopened after months of disruption linked to the war and security situation in the region.

Parents accompanied their children to school, with girls arriving in uniforms and mandatory headscarves, as the new academic year began in Tehran and other parts of Iran.

The reopening follows months of uncertainty after classes were suspended following the outbreak of the conflict on February 28. One of the deadliest incidents occurred in the southern city of Minab, where a school was struck during the conflict, killing dozens of people, including children.

Iranian officials said the tragedy had cast a shadow over preparations for the new school year, with authorities taking steps to mark the return of students while remembering those killed.

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In Minab on Wednesday, Iran’s Vice President for Science and Technology, Hossein Afshin, rang the school bell at a primary school to officially signal the start of the new academic term.

The traditional bell-ringing ceremony is normally associated with the president and forms part of nationwide celebrations welcoming approximately 16.5 million Iranian children back to school.

A separate ceremony featuring President Masoud Pezeshkian was held two days earlier this year, before the Iranian leader travelled to New York to attend the United Nations General Assembly.

The reopening represents a return to normal educational activities after months in which the conflict disrupted daily life and forced schools to close in affected areas.

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For many families, however, the first day back to school carries mixed emotions, coming after a period marked by military attacks, deaths and widespread disruption.

The government has sought to maintain the annual school-opening tradition despite the difficult circumstances, while officials have continued to commemorate victims of the conflict.

The new academic year will now see millions of Iranian students resume lessons as authorities attempt to restore regular schooling following the prolonged disruption.

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Photos: Tinubu has redefined infrastructure delivery in FCT – Wike

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The Minister of the Federal Capital Territory (FCT), Mr Nyesom Wike, has said that the administration of President Bola Tinubu, has fundamentally redefined infrastructure development across the nation’s capital.

Wike made the remarks on Wednesday in Abuja, while addressing newsmen after he inspected some ongoing road projects designed to de-congest traffic and unlock development across the territory.

The minister inspected the ongoing construction of Arterial Road SI, from Ring Road II to Arterial Road S20 (Oladipo Diya Way) in Kaura District and Collector Road C2 in Life Camp to Arterial Road N5 (Obafemi Awolowo Way).

He also inspected the ongoing construction of Arterial Road N16 from Ring Road II to Ring Road III and the Jereton Mariere Street by the Apo Legislative Quarters in Gudu District, as well as the ongoing remodeling and renovation of the IBB Golf Course.

“We are happy because we can see that the administration of President Bola Tinubu has redefined infrastructure as far as the FCT is concern,” Wike said.

Expressing satisfaction with the pace of work and quality of execution, the minister said that the administration remained on track to deliver the projects ahead of the 2027 general elections.

He particularly expressed optimism that the Arterial Road N16 would be completed as scheduled, in spite of the complex terrain and heavy bridge construction on the road corridor.

He noted that in spite of the difficult geography, the firm guaranteed delivery by the first week of January.

“If that N16 job is completed, obviously, the entire area will be a different thing altogether. That is a very huge infrastructure landmark,” he said.

Speaking on the renovation of the IBB Golf Course, the minister reaffirmed that the club would be fully operational and ready to host major tournaments by November.

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Addressing financial backings for the ongoing projects, Wike said that the 2026 capital budget had hit 60 per cent performance.

He added that in spite of initial delays in budget release that briefly affected contractor payments, funding flow had stabilised, enabling contractors to work at full capacity.

He dismissed political rhetoric ahead of the upcoming election cycle, while advising political office seekers to focus on presenting their records to voters rather than engaging in distractions.

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