Friday, 14 September 2012

Onshore-Offshore Dichotomy: FG Forecloses Review

The Federal Government has ruled out revisiting the issue of the onshore-offshore oil dichotomy. Attorney General of the Federation (AGF) and Minister of Justice, Mr. Mohammed Bello Adoke, stated the government’s position on the issue, which has already pitted the North against the South, at a valedictory session in honour of Justice Francis Fedode Tabai at the Supreme Court, Abuja.
He warned politicians and legal practitioners to avoid overheating the polity through the current debate on the need or otherwise to review the onshore-offshore oil dichotomy, which partly forms the basis for the allocation of derivation proceeds from the Federation Account.
His warning came against the backdrop of the clamour for a review of the onshore-offshore oil dichotomy by Northern governors who hold the view that the formula has reduced the distributable funds from the Federation Account to all tiers of government. However, their counterparts from the South-south and people of the oil-producing littoral states have rejected their position and even demanded that the derivation formula be raised from the current 13 per cent to 50 per cent.  Adoke said the debate, which is being elevated to an urgent national matter, with all the potential to generate acrimonious wrangling within the polity, and being made to look as if it was new, had been determined by the Supreme Court long time ago.

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