The Oil and Gas Producing Communities in Nigeria yesterday called for an upward review of the derivative fund to 30 per cent. They also made a strong case for direct payment of the fund to benefitting communities.
The communities also demanded for the replacement of the Niger Delta Development Commission (NDDC) and its state equivalents with the National Derivative Fund Committee and State Implementation Committee to oversee the management of the fund.
These were some of the recommendations at the Southwest zone public hearing on the review of revenue allocation formula in Ibadan, the Oyo State capital.
The Ondo State Chapter of the Concerned Youth Advocacy Movement of Oil and Gas Communities of Nigeria presented grim details
of the poverty and squalor in the oil- producing communities.
It argued that the huge funds being collected by the state government does not translate to meaningful development of the communities.
The group alleged that the money is partly used to develop the state capital while the rest ends with the governor.
In the memorandum presented by Omomuwasan Olarotimi, the youth group called for an upward review of the derivative fund to 30 per cent with additional request for direct payment to benefitting communities.
This way, he said, the affected communities can effectively address the decay in all sectors of their economic and social life.
The Ondo State Chapter of the Oil and Gas Producing Communities also pointed out that governors of Niger Delta states are not addressing the degradation, pollution and health hazards brought about by oil exploration, exploitation and production in the area despite their huge monthly allocations.
In the paper presented by Sam Ebiwanno on behalf of Omojuwa Adewale, the leader of the group, it accused governors of oil- producing states of abandoning the affected communities by poor investment of the derivative funds in the affected communities.