Deputy Senate President Ovie Omo-Agege, on Thursday, accused governors of the Niger Delta states of diverting the 13 per cent oil derivation funds meant for oil producing states.
The Deputy Senate President also advocated 100 per cent utilisation of the funds for oil-bearing communities, instead of the release only 50 per cent of the money to development Commissions by the state governments.
Sen. Omo-Agege, according to a statement by his Special Adviser on Media and Publicity, Yomi Odunuga, spoke when he hosted a delegation of Oil and Gas Host Communities of Nigeria (HOSCON).
The Amayanabo of Twon-Brass in Brass Kingdom and Chairman, Bayelsa State Traditional Rulers Council, Chief Alfred Diete-Spiff, led the team.
He argued that since host communities bear the burden of environmental degradation from the oil industry, it was only fair that all funds be channeled into the development of their areas.
Sen. Omo-Agege who chairs the Senate Adhoc Committee on Constitution Review, expressed regrets that the utilisation of the 13 percent derivation funds have become a political tool in the hands of state governors in the South South.
He said the diversion of the money had contributed to the underdevelopment of the zone as the affected communities could hardly boast of access to the basic necessities of life.
Said he, “I have been discussing this matter with Chief (Wellington) Okrika even before I became a senator.
“It is fair that the 13 percent derivation is meant to ameliorate the conditions of the people who are most impacted by oil exploration and exploitation.
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“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.
“Even in states that have development commissions, they only earmark 50 percent of the funds to the commission to manage on behalf of the host communities.
“So, what happens to the other 50 percent? We have always taken the position from the outset that 100 percent of the funds is meant for the development of host communities because it is not every area that suffers from oil exploration and degradation. But for some reasons, it has become a political tool.”
Sen. Omo-Agege reiterated his call for gas flaring penalties in the Petroleum Industry Bill to be paid to the host communities and not to the Federation Account.
