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abujagirl
Guest
Yesterday, five of the seven states in the northwest zone (Kano, Kebbi, Jigawa, Zamfara and Sokoto) sought for the return of the onshore/offshore dichotomy in the application of the 13 per cent oil derivation, which will in effect slash the total revenues received by the oil producing states.
According to DAILY TRUST, the states made their positions known at the zonal hearing on the review of the revenue allocation formula, organised by the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) in Kaduna. They opposed any changes to the revenue allocation formula that could funnel more oil funds to the Niger Delta.
Gambo Sallau, who presented a memo on behalf of the Kano State House of Assembly, called for the return of the onshore-offshore dichotomy such that the oil producing states would get 13 per cent derivation only from oil produced on shore.
He said in the last 14 years the implementation of the 13 per cent derivation created an “unacceptable gap” between the oil producing states and the larger part of the country.
Sallau added that the monies for the oil states were not utilized for the purpose earmarked for, adding: “In view of the above, we do not support any further increase on the 13 per cent derivation".
“We will rather opt to submit for return of the onshore-offshore dichotomy and the nullification of the current law which abrogated the onshore-offshore dichotomy in the sharing of derivation revenues from oil".
“We believe that the states in the Niger Delta have been fairly compensated through the following initiatives: 13% derivation, NDDC, Amnesty Programme, increased budgetary allocations to the Niger Delta under the present administration and creation of a whole Federal Ministry for Niger Delta".
During their submissions, representatives of Sokoto, Zamfara, Kebbi, Jigawa and Kebbi states said they concurred with positions canvassed in the Kano Assembly’s presentations.
