By; JACOB ONJEWU DICKSON
The Bolowei (Traditional Prime Minister) of Gbaramatu Kingdom Chief Dr. Wellington Okirika has advocated people oriented management of the 13% derivation fund currently being enjoyed by the oil producing states governor as the fund was not a manna that fell from heaven as some will make people to believe.
Chief Okirika pioneer executive chairman of the Delta State Oil Producing Areas Development Commission (DESOPADEC) who spoke on Nigerian Television Authority (NTA programme) on the spot said as the mobilizer and coordinator of the people of the oil and gas bearing communities of the Niger Delta during 1994/95 National Constitutional conference, the people of the Niger Delta made a powerful representation to the conference for more involvement of our people in the right and privileges that are derivable from oil production.
According to Izon National Leader, the representative of the Niger Delta people were able to convince the leadership of the 1994/95 National Constitutional Conference to make a recommendation for allocation of 13% derivation fund for the direct benefit to the source of derivation which is the oil and gas producing communities.
The then military Head of state General Sani Abacha accepted the unanimous decision of the 1994/95 constitutional conference on the 13% derivation fund and gazetted it. During the administration of General Abdulsalami Abubakar the oil producing communities mounted great pressure on him to ensure that the 13% derivation principal was enshrined in the 1999 constitution of the Federal Republic of Nigeria. When General Olusegun Obasanjo became president in 1999 he implemented constitutional provision of 13% derivation fund by giving it to the governors of oil producing states to manage on behalf oil producing communities. Indeed the governors were custodian of the 13% derivation fund.
During the last days of the second tenure of president Olusegun Obasanjo, he discovered that the governors have hijacked the 13% derivation fund and due to the pressure mounted on him again by the Host Communities of Nigeria (HOSCON) led by Chief Dr. Wellington Okirika, he redirected the governors of the producing states to create oil commission where 50% of the 13% derivation fund will be allocated directly to the oil producing communities for their involvement in the management and use of the 13% derivation fund in their States.
The governors of Delta, Ondo, Edo, Imo and Abia states complied with the presidential directives in varying forms while the governors of Bayelsa, Rivers and Akwa-Ibom states defied the presidential directives till date.
In his closing remarks, on the 13% issue, he said since the federal government template on the community based modular refinery will involve these producing communities in a 60/40 agreement with the investors and the oil producing communities are to source fund for their 40% contribution, it is only logical and wise that the 13% derivation fund which is exclusively for the producing communities primarily as a compensation for lost fishing right and productive farm land, that the president should direct the governors of the oil producing state who are receiving 13% derivation fund on monthly basis to provide between 30% to 50% of the 13% allocation to enable the producing communities fund their 40% contribution in their States.
Speaking on the proposed federal government community based modular refinery initiative, Chief Okirika currently leader of the Gbaramatu oil and gas producing communities trust fund said his people are very happy with the government intention as it is capable of addressing the issue of crude oil theft, local refineries operations and help in ensuring peace and security in the Niger Delta area.
In his words, “as executive chairman of DESOPADEC one of my top most decisions then was to industrialized the degraded Delta environment with modular refineries but the government then did not have the political will to carry out such industrialization policy”.
Eight (8) years after that well taught out policy, the current government is demonstrating the political will to ensure that the degraded Niger Delta environment are industrialized and I am confident that the community based modular refinery is doable and achievable.
Currently, the Gbaramatu oil and gas producing communities trust fund has entered into a partnership agreement of 60/40 with an American based modular investor Missouri American Energy to develop modular refinery in the Gbaramatu area.
Speaking further, he said “the world has moved beyond traditional refineries and everybody are now on modular refinery technology that is cheaper, easier to manage and more environmental friendly and therefore Nigeria cannot remain behind.
He emphasize that the following are the benefits and gain of modular refinery:
1. It will create job and wealth in the oil and gas producing communities
2. It will guarantee security of oil and gas facilities in the producing states
3. It will increase crude oil production which will in turn increase oil revenue
4. It is quick solution to importation of refined petroleum products into Nigeria.
5. It is only option for permanent removal of fuel subsidy
6. It will fast track deregulation of the downstream sector of the petroleum industry
7. It will stop illegal refinery and crude oil theft.
