Despite the allegation of financial malfeasance rocking the Niger Delta Development Commission (NDDC), the House of Representatives will today begin debate on a bill seeking upward review of the derivation fund accrued to the oil producing states and other states with natural resources from 13 per cent to 50 per cent.
The bill is seeking to alter section 162(2) of the Constitution of the Federal Republic of Nigeria, 1999 by increasing the percentage of derivation fund of the revenue accrued to the Federation Account directly from any natural resources to not less than 50 per cent.
Co-sponsored by Hon. Awaji-Inombek D. Abiante (PDP, Rivers) and 13 others, the bill was stood down at Tuesday’s plenary by Speaker Femi Gbajabimila to enable members study it for a robust debate the next legislative day, which is today.
In a brief to the House, Abiante stated that revenue agreements and conditions are not static and could change over time depending on the prevailing concerns of changing times.
The bill is aimed at getting diverse funds for the nation and ensuring local participation in mining so that the commonwealth of the nation can get to duly licensed and registered miners.
He argued further: “Even in the intent and desire to ensure the rehabilitation and development of the damaged environment where mineral resources are derived for the sustenance and development of the whole country does not also seem achievable with the current practice of 13 per cent”
The lawmaker submitted that in order to ensure justice and equity in the polity and also fast track the development and protection of the region and any part of the Federation where mineral resources or any revenue is gotten for the running of the business of governance, there is the urgent need to increase the derivation fund from ‘not less than 13 percent’ to ‘not less than 50 percent.
He insisted that “the pooling of our commonwealth at the centre and its administration is mired with corruption and misappropriation of funds meant for the development of Nigeria’s economy.
– Media Report