News

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

Published

5 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: Viral ‘Baba Onilu’ in Ibadan is dead + photo

Published

7 minutes ago

March 13, 2025

Admin

A skilled elderly drummer in Ibadan popularly called Ayangbenle ‘Baba Onilu’ is dead, The Nation has learnt.

Ayangbenle, a special drummer for Osun during the Osun Osogbo festival is a native of Ede town, Osun State.

The drummer’s son confirmed his demise.

He said: “Baba Onilu has passed away overnight. May Almighty Allah grant him Aljanah Fidarus”.

“Baba Onilu last word is “La Ilaaha Ila lahu”.

Ayangbenle used to drum for students of the University of Ibadan during convocations, then he also drummed to entertain corps members in Ibadan.

In April 2022, the drummer went viral when Adisa Olashile, a phone photographer and a corps member serving in Ibadan, Oyo, took random pictures of ‘Baba Onilu’ and the pictures went viral on social media platform – Twitter.

Olashile minted two of the pictures as NFT and they got collected immediately on OpenSea for 0.3 eth each – around one million naira.

Adisa promised to give Baba Onilu 50 per cent of the proceeds and he did. Five hundred thousand naira with an additional 100 thousand obtained from donations was handed over to Baba who received the huge cash in shock and disbelief as he was also presented with a picture frame of his image.

In an interview last year, Ayangbenle said he inherited the drumming skill from his father and did not go to any training center.

He said: “Drumming is the profession of my paternal grandmother’s lineage. I started drumming in Ibadan.”

Credit: The Nation

News

Tinubu nominates Melvin Ayogu to CBN board, requests Senate approval

Published

8 hours ago

March 12, 2025

Naijablitznews

President Bola Tinubu has nominated Melvin Ayogu to the board of the Central Bank of Nigeria and has sought Senate confirmation for the appointment.

The Special Adviser to Tinubu on Information and Strategy, Bayo Onanuga, made this in a statement on Wednesday.

Tinubu also sought Senate confirmation for Nwakuche Ndidi as controller-general of the Nigerian Correctional Service.

He said the requests, conveyed in letters to Senate President Godswill Akpabio, were read during Tuesday’s plenary.

Tinubu had previously nominated Robert Agbide, Ado Wanga, Murtala Sagaley, Urom Eke, and Olayinka Aliyu to the CBN board in February 2024.

However, on February 29, 2024, the senate confirmed four people as members of the board of the CBN after Eke rejected the offer, citing “conflict of interest”.

Tinubu replaced Eke with Ruby Onwudiwe on March 13, 2024; however, a day after, reports circulated that the president withdrew her nomination over political affiliation with the Labour Party, an opposition of the All Progressives Congress.

The decision reportedly followed pressure mounted on the president by members of the APC, as Onwudiwe publicly supported Peter Obi, who contested on the LP platform against Tinubu, at the 2023 presidential elections.

News

LSHA crisis: Tinubu meets Obasa, Meranda at Presidential Villa

Published

8 hours ago

March 12, 2025

Naijablitznews

Members of the Lagos State House of Assembly have arrived the State House, Abuja, to meet with President Bola Ahmed Tinubu.

The legislators who arrived in two coaster buses had been allowed into the President’s office area to wait for the meeting.

Both the reinstated Speaker of the Assembly, Hon Mudashiru Obasa, and the ousted one, Hon Mojisola Miranda, were also sighted in the team.

While Meranda arrived with her colleagues at some minutes past 2pm, Obasa arrived separately at about 2:50pm.

The meeting may not be unconnected with the recent leadership crisis in the State House of Assembly.

It would be recalled that Hon. Obasa was impeached as Speaker by a majority of his colleagues, but he was latter reinstated after the intervention of the political leaders especially the Governor’s Advisory Council, (GAC)

Despite the Speaker’s reinstatement, it was gathered that the bad blood as a result of his impeachment is yet to be over.

The Nation