Ibok Essien Renews Call For 25% Oil Derivation

Former Deputy Chief Whip of the Nigerian Senate, Senator Emmanuel Ibok Essien, has renewed call for an increase in the derivation allocation to oil-producing states from 13 per cent to 25 per cent..

The call comes against the backdrop of former President Olusegun Obasanjo’s recent endorsement of demands for an increase in the derivation allocation, following his reported admission that oil-producing communities have not received a fair deal and that the current 13 per cent should serve only as a starting point for negotiations.

Speaking on ARISE News TV, Ibok Essien, who was a prominent voice in the Senate during the Obasanjo presidency, expressed surprise at the former president’s new position, recalling that he (Ibok Essien) had fought for a higher derivation percentage when the former president had the opportunity to address the issue.

Ibok Essien a former National Chairman of the Pan Niger Delta Forum (PANDEF), said Obasanjo had opposed an increase in derivation and resisted the payment of the onshore-offshore oil dichotomy until pressure was brought to bear on his administration.

Ibok Essien, who participated in the Political Reform Conference convened by Obasanjo, recalled that Niger Delta delegates had demanded a 25 per cent derivation allocation, while the conference recommended 17 per cent. He said the recommendation was not implemented, despite the region’s persistent demand for a fairer share of revenue from its natural resources.

He described Obasanjo’s recent position as surprising, coming nearly 19 years after he left office, while welcoming the former president’s remarks, he questioned whether the change of position was sincere, suggesting that Obasanjo might have come to recognise the injustice he had earlier failed to address.

Senator Ibok Essien also recalled that efforts were made during his service at the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) to increase the derivation percentage from 13 per cent to 15 per cent stressing that the proposal did not secure approval because of political challenges.

He urged RMAFC to review the revenue allocation formula and recommend an increase to 25 per cent, arguing that the environmental pollution, ecological damage and devastation suffered by oil-producing communities require substantially greater resources to address.

“The suffering in the Niger Delta region is too much,” he said, maintaining that the funds currently accruing to the region were inadequate to tackle the scale of environmental damage and hardship experienced by its people.

He further argued that increasing derivation would benefit other resource-producing areas of Nigeria, not just oil-producing states.

He cited gold deposits in Zamfara, feldspar in Kogi, premium limestone deposits in Ogun, and other mineral resources across the country, noting that the principle of derivation applies to natural resources generally.

He called on RMAFC, the National Assembly and other relevant authorities to support an increase to 25 per cent, stressing the need for resource-producing communities across Nigeria to receive a fairer share of the wealth generated from their land.