The Presidency said yesterday that on-shore/off-shore dichotomy has not been reintroduced in the sharing of oil revenue in the Federation Account Allocation to states.
It urged Nigerians not to misconceive the recommendations of the committee raised by the All Progressives Congress (APC) on true federalism.
The Governor Nasir El-Rufai-led committee had recommended: โTo promote the unity of the country and ensure that states are more financially empowered to deliver services to their residents, as well as ensure no one feels disadvantaged, the committee recommends that the federal government should expeditiously review derivation to reflect areas of consensus which are adoption of โstate control of resources and pay FG,โ upward review of the current formula in favour of states and adoption of similar derivation formula in favour of solid minerals and power generation.โ
Senior Special Assistant to the President on National Assembly matters (Senate) Senator Ita Enang, told reporters yesterday that the issue was being used to campaign against President Muhammadu Buhari. He denied that government had covertly or overtly reintroduced the dichotomy.
He said: โAttention is drawn to the campaign against Mr. President, the APC as a party and the Committee on proposal for re-structuring of Nigeria report led by Governor El-Rufai alleging that the said Report is introducing on-shore-off-shore dichotomy intended to deprive the littoral states of Akwa lbom, Bayelsa, Rivers, Delta, Lagos among others of the derivation content of Revenue allocation.
โAnd more, by Akwa Ibom State alleging that a greater part of her revenue is from off-shore oil.
โAs preliminary, I want to state aforehand that neither President Muhammed Buhari, the APC as a Ruling party nor the Report on re-structuring has reintroduced covertly or overtly or in any manner whatsoever the abrogated on-shore-off-shore dichotomy and that the statutory allocation to Akwa Ibom and other littoral States will not decrease.
โI speak and say again that the intendment of the (APC) Report is to allow the states control resources and devolve more powers to the states, and consequently increase allocation to the states, of which Akwa Ibom is among.โ
On the APC committeeโs recommendations, he said the ruling partyโs committee in response to popular opinion, recommended an upward review of the the current derivation formula and adoption of the said formula in favour of solid minerals and hydro power.
The recommendation, he said, will entail the amendment of section of Constitution, noting that โthe apprehension of the contenders is that the recommendation says that the oil, gas, and other minerals devolved to the state and that off-shore belongs to the Federal Government,โ
He said โBy Gods special Providence, arising from the decision of the Supreme Court in the of AG. v Abia State & 35 ors (2002) 6 NWLR (part 764) 542-905, I played central co-ordinating role in the abolition of the on-shore-off-shore dichotomy in the House of Representatives and my brother, Senator Udoma Udo Udoma now Honourable Minister of Budget and National Planning led in the Senate.
โUpon the judgment in 2002, the Federal Government, at the lead of Emeritus Governors of Obong Victor Attah (AKS), DSP Alamieyesigha (Bayelsa), James Ibori (Delta) and Peter Odili (Rivers) agreed with the Federal Government on behalf of the littoral States for a political solution, and this was worked out legislatively
โReading the judgment of Kutigi, JSC (as he then was) in the case of AG, Federation v. AG, Abia Reading the Judgment of Kutigi, JSC State & Ors (Supra) wherein His Lordship states:
โThis court has no legislative powers and it cannot rewrite the laws. Only the legislature can lawfully and properly do that if it so wishes.โ
โI must observe again that even the plaintiffโs claim before the court is simply โA determination of the seaward boundary of a littoral State within the Federal Republic of Nigeriaโฆโ
He added: โWe deemed this window for legislation and accordingly the Allocation of Revenue (Abrogation of Dichotomy in the Application of the Principle of Derivation) Act 2004 was made which states:
โAbrogation of the Onshore and Offshore Dichotomy;
โAs from a commencement of this Act, the two hundred meter water depth Isobaths contiguous to a state of the Federation shall be deemed to be a part of that State for purposes of computing the revenue accruing to the Federation Account from the State pursuant to the provisions of the Constitution of the Federal Republic of Nigeria, or any other enactment.
โAccordingly, for the purposes of the application of the Principle of Derivation, it shall be immaterial whether the revenue accruing to the Federation Account from a State is derived from natural resources located onshore or offshore.โ
The presidential aide therefore insisted that โthe above is provision of the existing law.
โNo suggestion has been made for the abrogation of this Act in the recommendations, and no proposed Bill is drafted in the Report
โMay l state that at no point has it recommended for on-shore-off-shore dichotomy to be re-introduced or enforced, and the Federal Government is not doing so at this moment
โMay this be enough to allay the fears of the agitated or lay to rest the malicious issues raised by false alarmists.โ
