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Nigeria: South-South Senators, Others Clash Over NDDC, 13% Derivation Revenue

Efforts by Senators from other regions, especially the south-west to include non-oil producing states into the Niger Delta Development Commission (NDDC) was thwarted by their counterparts from the Niger Delta region during plenary yesterday.

This followed a lead debate on a Bill for an Act to amend the NDDC for the inclusion of new oil producing areas and states into the commission and other matters connected therewith sponsored by Senator Adeola Solomon Olamilekan (Lagos West).

The Bill was first read for the first time in the Red Chamber on December 17, 2019.

Earlier in his submission, the Lagos West lawmaker argued that, “following the discovery of Oil in Bauchi, Lagos and Ogun, these states have officially joined the League of Oil Producing States in Nigeria following the discovery of crude oil in Alkaleri Local Government, Bauchi; Badagry, Lagos, and Ipokia, Ogun state.

“By virtue of this, the states are entitled to the 13 percent derivation that is due to oil producing states according to the provision of Section 162 Sub-Section 2 of the Nigeria constitution.”

He further argued that, “the purpose of this Bill is for the Act to make provision for new states who have joined the league of oil producing states in Nigeria and for states that might eventually discover oil in the future as opposed to the present position of the Act which only covers oil producing states within the Niger Delta region.”

Adeola added: “Furthermore, the inclusion of the new oil producing states in the Act saves costs and follows precedence.

“In conclusion, this amendment is to accord the same provisions of the law amongst other benefits accrued to oil producing states in Nigeria to the new oil producing states and future oil producing states.”

But in swift reaction, Senators from the Niger Delta region did not waste time throwing knocks on the sponsor of the Bill describing the proposed legislation as selfish and dead on arrival.

Deputy Senate President, Omo-Agege haven exhausted his submission, described Senator Solomon Adeola as a meddlesome interloper. He said: “We look forward to the day when indeed all states in Nigeria will not only produce oil but produce one form of mineral resource or the other.

“Dealing with the issue of 13 per cent derivation. To us that is not an issue to the extent that they produce oil in commercial quantity and DPR so determines, that oil is been sold, and revenue is sent to the federation account. That is not the issue yet.

“The issue is just because they are oil producing they should come under NDDC, if you are looking for meddlesome interlopers, you don’t have to go too far to find one.

“What this lead debate clearly shows that my colleague from Lagos is a classic meddlesome interloper. The NDDC is a regional development commission. We must draw a distinction between the NDDC and the oil and mineral producing commission.”

On his part, Senator George Sekibo congratulated states that recently attained the oil producing status, but wonder if they have attained the status of producing in commercial quantity.

“Are they exploring oil, are they refining oil in these places and has the oil caused any devastation in that environment? Sekibo asked.

He added: “The purpose of the NDDC is not just because they found oil there, it is because the place has been so devastated and there is a need to see how they can remedy the place and because that place is so backward.

“Each time there is a law to support a backward people, to support people who are suffering, Nigerians will come out after a couple of years to dampen the strength of that law.

“There is nothing wrong that they are given their 13 per cent derivation, which is if funds from those oil are now in use.”

Also joining issue with the sponsor of the Bill was Senator Matthew Uhroghide, who said the proposed legislation was wrongly presented and also reminded the sponsor that what constitutes the NDDC presently was tied to production capacity.

“Today Gombe is fast becoming a host community, Bauchi and some other states. But to say these states belong to the Niger Delta region is not possible.

“If the idea is you want to share out of the 13 per cent derivation, they are at will as long as they produce oil but to say they must belong to Niger Delta, it makes mockery of the idea in the creation of NDDC, added Ohroghide.

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