Oil Producing Areas Demand Derivation Commission.

Against the backdrop of rising hostilities in the Niger Delta, oil-bearing communities drawn from the 10 oil and gas producing states and seven impacted areas yesterday, demanded a Presidential Derivation Commission to manage the 13 per cent accruing to the states every month.

The fresh call, it was gathered, is not unconnected with the alleged mismanagement of the funds, which are currently under the control of the respective state governors.

The communities operating under Nigeria Producing Oil and Gas (HOSCON) said it has become imperative that government sets up the commission to avoid the on-going drift.

In a communiqué signed by Director of Media and Publicity, Mike Emuh, on behalf of the National Executive of the body led by Dr Mike Emuh, the group also demanded the quick passage of the Petroleum Industry Bill into law.

Among others, they requested government to urgently release the cumulative Gas Flare Penalty Levy accruing to them.

The communities argued that since they bear the direct consequences of gas flaring, the penalty paid by the multinational oil companies should not be paid into the Federation Account, which is shared by the entire country.

Aligning with recent calls for a fair redistribution of ownership of oil wells in the region, HOSCON noted that a “new oil blocs sharing formula that must take into cognisance the local content act and the natural law of equity,’’ should henceforth be agreed upon.

It also demanded “the award of pipelines surveillance contracts to oil and gas producing and impacted communities all over the country, as a community policing effort to safeguard the national oil and gas installations. Source: Guardian Online News.

Opinion: A Presidential Derivation Commission to manage the 13% derivation that accrues to oil producing states, will not stop corruption. Will the people to manage this commission come from another planet or still Nigerians? How many commissions has the federal government set up for the oil producing areas and ask yourself, where does all the money go to. What about the huge revenues that goes to the state with little or nothing to show for it. Not sure this will stop corruption.