13% Derivation Fund to be introduced in the House of Reps – Member

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The direct payment of a 13% derivation fund to oil-producing communities has been introduced in the House of Representatives. This will be official through a bill seeking to amend the 1999 Constitution.

If passed into law, the 13% derivation fund will be paid directly to the host communities  of each benefiting state through the Host Communities Development Commissions.

Rep. Doctor Farah Dagogo, Member representing Degema/ Bonny Federal Constituency from Rivers State said the bill ‘Constitution of the Federal The Republic of Nigeria, 1999 (Amendment) Bill, 2021 (HB. 1570),’ is intended to address and correct the injustices the oil-producing communities have been experiencing.

“In demonstrating its seriousness, a section of the bill recommended that ‘failure of any state to establish the Host Communities Development Commission shall be deemed as an offence and such a state shall forfeit 30% of her monthly benefit from the 13% derivation fund till such a time that the Commission is established’

Before the presentation of the bill, the Federal Lawmaker had  accused the Governors of the Niger Delta states, of wasting N10 trillion from the derivation fund in 8 years.

“This is a very sad commentary as it relates to the oil-producing communities of the Niger Delta. The 13 per cent Derivation is the fund set aside to assist oil-producing communities to tackle infrastructural decay and degradation, with emphasis on the oil-producing communities. What it means basically is that in sharing the federation account revenue, 13 per cent should be set aside to assist the development of these oil-producing communities.

” About two decades down the line what is there to show for the humongous monies that have come in? The Governors, past and present, view it as free monies.


“Between 2000 and 2018, over N10 trillion from the 13 per cent derivation principle, have been shared with the Niger Delta Governors, on behalf of the oil-producing communities, yet the deplorable living conditions of the people from these oil-producing communities have remained nauseating and deplorable with the people battling and still reeking with the worst and the highest form of poverty,” he noted.

Suzan O/VANG

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