Derivation fund not for state govts, but host communities – Omo-Agege

The Deputy President of the Senate, Ovie Omo-Agege, has lamented the diversion of the 13 per cent oil derivation funds by oil-producing states.

He raised the concern on Thursday in a statement by his media office, titled, ‘Omo-Agege laments diversion of 13% derivation fund by oil-producing states.’

The senator, according to the statement, made a case for 100 per cent utilisation of the funds for oil-bearing communities, as against the practice where states release only 50 per cent of the money to development commissions in their states.

 He made the remarks when he hosted a delegation of Oil and Gas Host Communities of Nigeria led the Amayanabo of Twon-Brass in Brass Kingdom and Chairman, Bayelsa State Traditional Rulers Council, Chief Alfred Diete-Spiff.

He said, “It is fair that the 13 per cent derivation is meant to ameliorate the conditions of the people who are most impacted by oil exploration and exploitation.

“That is the only reason this fund was set aside as a consequence of your agitation which you led for so many years.

“These funds are not meant for the state governments. The state governments are meant to be purveyors to host communities.”

Omo-Agege reiterated his call for the inclusion of a penalty for gas flaring in the Petroleum Industry Bill, which is to be paid to the host communities and not into the Federation Account.

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