13% Derivation Fund: Ijaws Threaten to Shut Down Flow Stations

Host communities of core Ijaw oil-producing areas of Egbema, Gbaramatu and Ogulagha Kingdoms in Delta State have threatened to shut down oil flow stations unless they were directly paid their alleged share of 27 per cent of the 13 per cent derivation fund which accrues to the state. The communities, in a letter to President Goodluck Jonathan signed by 28 chiefs and members from each of the communities in the three kingdoms said urgent intervention was required to avoid crisis that may lead to the closure of the flow stations in their kingdoms.

The communities said they no longer have faith in the Delta State Oil Producing Development Commission, (DESOPADEC), which they alleged, have been hijacked by politicians. The group alleged that the monthly allocation of 50 per cent of the state derivation fund was either not paid to DESOPADEC as at when due and there were often shortfall in payment, a situation which had led to contractors not being paid for jobs certified done.