1 month ago
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The House of Representatives is set to consider a bill seeking an increase in derivation funds for states with mineral resources from not less than 13 per cent to at least 50 per cent.
The bill, sponsored by the member representing Andoni/Opobo/Nkoro Federal Constituency, Rivers State, Awaji-Inombek Abiante, and eight others, aims to amend Section 162(2) of the 1999 Constitution (as amended).
Initially scheduled for deliberation during Wednesday’s plenary session, the bill was deferred to Tuesday next week to allow members sufficient time to obtain copies and make informed contributions.
In his legislative brief, the lawmaker noted that the current 13 per cent derivation fund is “grossly inadequate,” calling it “a misrepresentation of the spirit of pre-independence negotiations and agreements.”
As a result, he proposed an increase in the derivation fund from “not less than 13 per cent to not less than 50 per cent.”
He added, “The intent and desire to ensure the rehabilitation and development of the damaged environment where mineral resources (liquid, gaseous, and solid) are extracted for the sustenance and development of the entire country do not seem achievable under the current 13 per cent arrangement.”
“This bill is not solely about resource control but seeks to address the various issues related to the meagre ‘not less than 13 per cent’ derivation fund payable to states from revenues derived from their environment, as provided for in Section 162(2) of the 1999 Constitution of the Federal Republic of Nigeria (as amended).”
He emphasised that the amendment is not only relevant for today but also for the future, cautioning that while some may feel unaffected now, “what about the future?”
The Peoples Democratic Party lawmaker reminded his colleagues that “Every state in the Federal Republic of Nigeria is blessed with abundant natural resources capable of transforming the country’s economic fortunes. The Federal Government’s increased interest in reducing dependence on oil and gas as the backbone of our economy means more focus will be placed on solid minerals.”
Justifying the call for an increase in derivation funds, he stated, “The significant environmental impacts of resource exploitation on host communities are devastating.”
“These include, but are not limited to, pollution of the environment through oil spills in the case of oil exploitation, and the degradation of the soil in the case of solid mineral extraction.”
He highlighted the frequent oil spills in the Niger Delta, which sometimes result in serious fire incidents, destroying lives, property, and farmlands. He added that sea and water resources are also affected, and the destruction of the environment in areas where solid minerals are mined has impacted people’s livelihoods.
“The ripple effects of lost livelihoods, such as hunger, lead to other social vices and organised crime,” he said, adding that “The meagre ‘not less than 13 per cent’ derivation, as currently provided for in the 1999 Constitution, encourages illegal exploitation and mining of our natural resources.”
