News

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

Published

2 months ago

October 23, 2024

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”.

News

Breaking: Governor Ahmed Usman Ododo Signs N582.4 Billion 2025 Budget into Law

Published

6 hours ago

December 30, 2024

Naijablitznews

Kogi State Governor, His Excellency Alh. Ahmed Usman Ododo, has signed the 2025 appropriation bill into law today December 30, 2024 at the Glass House, Government House, Lokoja. This significant move paves the way for the implementation of the state’s budget, which aims to stimulate job creation, infrastructure development, food security, and staff welfare.

The 2025 budget estimates, totaling N582,404,119.489, represent a 43.34% increase from the revised 2024 budget of N406,321,130,013. The budget is expected to address key sectors such as education, healthcare, infrastructure, agriculture, and economic development.

While presenting the Appropriation Bill for the Governor’s accent, the Speaker Kogi State House of Assembly, RT Hon Aliyu Umar appealed to the Governor to spread the “Budget of inclusivity” to all the state constituencies for an enhanced development.

By signing the appropriation bill into law, Governor Ododo has demonstrated his commitment to shaping the financial future of Kogi State. The move is expected to have a positive impact on the state’s economy and the lives of its citizens.

News

SAD! One Killed, 3 Injured In Bloody Delta Community Chieftaincy Title Procession

Published

6 hours ago

December 30, 2024

Naijablitznews

A violent clash arising from chieftaincy title conferment on an indigene of Aboh, headquarters of Ndokwa East Local Government Area, Delta State, has left one person dead and three others sustaining varying degrees of injuries in the community.

The bloody clash that was between members of opposing factions in the community, occurred during the chieftaincy title procession, causing pandemonium in the area.

Though the circumstances surrounding the clash could not be ascertained at the time of filing this report, sources said it may not be unconnected with some disagreements that preceded the event.

The development has generated tension in the area with the Chairman of Ndokwa East Local Government Area, Mr. Vincent Osilonya imposing a 7.pm to 6.am curfew in the community.

Confirming the incident yesterday, Police Public Relations Officer of the State Police Command, Mr. Bright Edafe said the deceased died in a hospital where he was taken for treatment.

Edafe said: “It was as a result of two factions that they have in the community.

“Somebody was given a chieftaincy title and part of the protocol was that once you are given the title, you will dance around the community.

“When he was dancing, he now danced to the faction of the group that was not on his side, so they attacked him.

“He that was dancing also carried some hunters who were escorting him. When they attacked him, the hunters retaliated.”

Similarly, a dependable source in the community, said those opposed to the chieftaincy title conferment had tried to stop the procession when they clashed with the hunters.

“In the process, shooting started; one person died and three other persons sustained various degrees of injuries and were taken to hospital for treatment”, the source who craved anonymity, said.

Reacting to the development, the council Chairman, Vincent Osilonya said: “the position is that we have imposed curfew in Aboh from 7.pm to 6.am while we are are speaking with them to sheath their swords.Nobody should take laws into their hands.”

He confirmed that three persons sustained injuries during the incident.
VANGUARD

News

Constitutional breach : Rivers Gov Fubara, Again Presents 2025 Budget To 4-Member House Of Assembly

Published

6 hours ago

December 30, 2024

Naijablitznews

The governor of Rivers state, Siminalayi Fubara, has continued to progress in error as he presented the 2025 budget proposal to the Victor Oko-Jumbo-led four -man Rivers House of Assembly.

Fubara presented the N1.1trillion appropriation bill to the house on Monday.

The four members led by the Speaker, Oko-Jumbo, had earlier read Governor Fubara’s letter requesting permission to present the appropriation bill on Monday, at their plenary.

This marks Fubara’s second budget presentation since assuming office.

Fubara had presented the 2024 state appropriation bill of N800 billion in 2023 to a four-man House of Assembly led by factional Speaker, Edison Ehie.

The presentation occurred while Rivers citizens and residents grappled with the news of the sudden demolition of parts of the state House of Assembly complex.

This followed the defection of 27 Assembly members, including then-Speaker Martin Amaewhule, from the Peoples Democratic Party (PDP) to the All Progressives Congress (APC).

Amid legal battles and political intervention, including input from President Bola Tinubu, Ehie eventually resigned from the Assembly and was subsequently appointed the Chief of Staff to the Government House.

The crisis deepened as the three remaining members of the House after Ehie’s exit maintained their legitimacy, citing Section 109 of the 1999 Constitution (as amended), which they argued is self-executing in cases of defection without a crisis in the parent party.

The trio, consisting of Oko-Jumbo (Bonny Constituency as, Speaker), Adolphus Timothy (Opobo/Nkoro Constituency as Deputy Speaker), and Sokari Goodboy (Ahoada West as Leader of the House), assumed the Assembly’s leadership.

They have consistently carried out legislative functions, often in alignment with the Fubara-led administration.

Meanwhile, the 27 defected members have since reversed their decision and continue to attend functions as PDP members and hold sessions under Martin Amaewhule’s leadership, frequently opposing the government’s policies.

As part of the twist in Rivers State’s ongoing political and legislative crisis, both the Federal High Court and the Appeal Court nullified the N800billion 2024 Appropriation Bill of the state, halting its implementation.