Stop giving derivation fund to oil states, NUF tells FG

Stop giving derivation fund to oil states, NUF tells FG

Monday, March 28, 2016 1:06 pm

Mrs Kemi Adeosun: finance minister

Mrs Kemi Adeosun: finance minister

A group called Ndigbo Unity Forum (NUF) has appealed to the Federal Government to stop giving the monthly 13 per cent oil derivation fund to state governments in oil producing states.

The President of the group, Mr Augustine Chukwudum, made the call in an interview with the News Agency of Nigeria (NAN) in Enugu on Monday.

“it is clear that this monthly allocation to oil producing states does not get to the communities and council areas where the oil and gas is being drilled.

“Rather, most times the monies end up in the pockets of politicians at the state capitals; leaving the rural communities where the oil and gas activities take place more impoverished.”

Chukwudum suggested that the Federal Government should rather, spend 10 per cent and three per cent of the fund in the provision of amenities to communities and councils where oil and gas were being explored.

“This is because even when Federal Government gives out such monies to the state governments, the communities do not feel the impact because the state governments do not use it for the good of the people. That is why we are making this suggestion. We hereby call on the National Assembly to ensure that communities and council areas benefit from their God given natural resources instead of causing environmental degradation for them and leave when the oil and gas well is dry.”

The president of the group said that when communities were given due sense of belonging, Federal Government property such as pipes and installations would be protected jealously.

“And this will further spur other communities and council areas to harness their natural endowment for national development,” he added.

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