The Edo State branch of the Oil and Gas Host Communities of Nigeria (HOSCON) has charged President Muhammadu Buhari to the replicate recent fiscal freedom granted judiciary the legislature at the states’ level for the oil producing communities.
The HOSCON, in a statement issued by Deacon Friday Osazuwa and Pastor Osariemen Paul Okpamen, Chairman and Secretary, respectively, of the Edo State branch, explained that their demand would be realised through the release of the Derivation Fund directly to the communities, instead of paying through state governments.
The body, which noted that the practice of paying the fund to state governments over the years was a contravention of the constitutional provision for the fund,
reminded President Buhari that the provision for the Derivation Fund was actually done to take care of the peculiar economic and ecological side effects of oil and gas operations on the communities.
HOSCON went further to advise the President that obeying the Constitution in that regard would not be difficult, suggesting that he reached to the people for whom the constitutional provision was made by working through the Presidential Derivation Committee (PDC) and State Implementation Committees (SIC).
“Of a truth, 13% Derivation Fund is the only first line charge on the Federation Account. The federal government is second line charge, the state government is third line charge while the local government is fourth line charge. This is the position of law as confirmed by the Revenue formula.
“Therefore it is illegal and unconstitutional to pay the 13% derivation fund which is first line charge through State Governors, third line charge on the Federation Account.
“Section 162(2) of the 1999 constitution as amended ‘Provided the principle of derivation shall be constantly reflected in any approved formula as not being less than 13% of the Revenue accruing to the Federation Account directly from any natural resources’.
“This position of the Constitution made it very clear that 13% derivation fund is provided constitutionally and exclusively for the oil/gas producing Communities primarily as compensation for loss of fishing rights and productive farmlands as a result of oil/gas exploration and production activities. Oil/gas is number 39 on the Exclusive Legislative List ‘’Mines and Minerals including oil fields, oil mining, geological survey and natural gas.
“It is instructive to note that any matter that is on the Exclusive Legislative List it is only the President or Head State that has the prerogative and jurisdiction on all matter on the exclusive legislative list. No governor or state assemblies can legislate on matters on the exclusive list.
“Therefore it is illegal and unconstitutional for Governors of the South–South States and their states Assemblies to legislate on oil/gas – 13% derivation fund which is first line charge on the Federation Account.
“We therefore wish to refer to our repeated advocacy and agitations through press conferences, media engagement and our recent visit to President Muhammadu Buhari and plead with Mr. President to stop the illegal and unconstitutional payment of 13% derivation fund through state governors who are third line charge on the Federation Account and pay same directly to the Host communities through the proposed Presidential Derivation Committee (PDC) and State Implementation Committees (SIC)”, the statement said.