Constitution Review: Reps Step Down Bill For 50% Increase Of Derivation Fund

The House of Representatives has stepped down a bill to increase derivation funds for states with mineral resources from not less than 13 per cent to at least 50 per cent.

The bill, sponsored by Hon. Awaji-Inombek Abiante (PDP, Rivers) and eight others, seeks to alter Section 162(2) of the 1999 Constitution (as amended).

The bill was listed for second at plenary on Wednesday, but after the debate, it was stepped down by leave of the House until another legislative date so that lawmakers could study the proposed legislation’s aim.

Abiante, in a legislative brief, noted that the 13 per cent derivation fund currently in operation was grossly inadequate, describing it as “a misrepresentation 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 per cent.

“This bill is not all about resource control but an attempt to address the myriads of issues bordering on the meagre ‘not less than 13 per cent’ 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 relevant for today and the future. Some of us may feel that this section we seek to amend makes no sense to them because their states are not presently affected, but it is pertinent to ask, what about the future?”

“Every state in the Federal Republic of Nigeria is blessed with abundant natural resources capable of turning around the country’s economic fortunes. The increased interest by the federal government in reducing dependence on oil and gas as the mainstay of our economy means attention will be shifted to solid minerals,” he maintained.

Meanwhile, the House passed through a second reading, seeking the increment in the percentage of revenue based on the derivative principle accruing to the Federation Account directly from Natural Resources.

A Bill for an Act to Alter the Constitution of the Federal Republic of Nigeria, 1999 (as amended) to provide for increment in the percentage of revenue based on derivative principle accruing to the Federation Account directly from Natural Resources.

Sponsor of the bill, Hon. Mark Udo Esset) in a lead debate, said the proposed legislation seeks to encourage all the states of the federation to harness and develop their natural and untapped resources to discourage over-dependence on allocation from the Federal Government.

He stated that it also seeks to ensure states can control their peculiar security challenges. He urged Honorable Members to support it to promote true independence and autonomy of states.

Also at the plenary, the House passed, for a second reading, a bill to alter the Constitution of the Federal Republic of Nigeria, 1999 (as amended) to create Isu/Njaba and Nkwerre/Ngwangele Federal Constituencies from the present Isul Njaba/Nkwerre/Nwangele Federal Constituency within Imo State.

Sponsored by Hon Harrison Anozie Nwadike, the plan intends to
enhance democratic representation and governance by ensuring that the populations of these areas have adequate and equitable representation in the House of Representatives.

It also seeks to address the Unique socio-political and developmental needs of the Isu, Njaba, Nkwerre, and Ngwangele communities.