The House of Representatives will today consider an upwards review of
the derivation fund accruing to the oil producing states and other
states with natural resources from 13 per cent to 50 per cent.
The bill seeks 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 accruing to the Federation Account
directly from any natural resources to not less than 50 per cent.
The bill, which is co- sponsored by Hon. Awaji-Inombek D. Abiante
(PDP, Rivers) and 13 others was stood down at Tuesday’s plenary by
Speaker Femi Gbajabimila to enable members study it for a robust
debate the next legislative day.
In a brief to the House, the principal sponsor, Abiante stated that
revenue agreements and conditions were not static and change over time
depending on the prevailing condition.
He said 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.
“It is in the light of the foregoing that I stand before you to state
that the current ‘not less than 13 percent derivation’ entrenched in
the 1999 constitution is grossly inadequate and a misrepresentation of
the spirit of pro-independence negotiations and agreements,” he added.
He argued that “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 per cent” to “not less than 50
He insisted that “the pooling of our commonwealth at the centre and
it’s administration is mired with corruption and misappropriation of
funds meant for the development of Nigeria’s economy.
“Accordingly, paragraphs 2 of section 162 (2) of the constitution
should be altered by deleting the words ‘not less than 13 percent’ in
line 3 and insert ‘not less than 50 percent .’”
Abiante maintained that the bill ” is a response to the clamour of the
present administration to right the wrongs of previous regimes and
create a pure Federation, we are lending our voice under this regime
of change to review quickly and amend the formula to not less than 50
percent according to the independence constitution of 1960 and the
Republican constitution of 1963 in section 134 (1) (a and b) and 140
(1) (a and b)