Oil Communities want Derivation Board established

Oil producing communities in Delta State have petitioned the Chairman, Revenue Mobilization Allocation and Fiscal Commission (RMAFC), demanding among other things, that a derivation board whose members will be recommended for appointment by the President on the advice of the leaders of oil and gas communities be set up.

The communities also demanded that the 13 percent derivation fund accruing to the federation account directly from any natural resources be paid as first line charge from the federation account to the communities.

The oil producing communities said in a letter signed by elders from six oil producing states including, Edo, Ondo, Akwa Ibom, Rivers, Delta and Bayelsa states said that the proposed derivation board should be comprised of an executive chairman, secretary and members including a member from RMAFC . They added that the chairmanship should rotate among oil and gas producing states every four years. They also insisted that the 13 per cent Derivation Fund currently being managed by the State Governors in the oil and gas producing states was an aberration, adding that the Fund had been managed without regard to the oil and gas producing communities who are owners of the Fund.