Collaborate with FG for increased 13% derivation fund, Lokpobiri tells Niger Delta leaders

Heineken Lokpobiri, minister of state for petroleum resources (oil), has asked leaders in the Niger Delta to collaborate with the government to ensure increased oil production and funds earmarked to oil-producing states.

The ’13 percent derivation fund’ comes from the federation revenue to oil-producing communities through the state governments as enshrined in section 162, sub-section 2 of the Nigerian constitution

Lokpobiri spoke on Friday during the special general assembly of the Pan Niger Delta Forum (PANDEF) in Port Harcourt, Rivers state.

“It’s important that I use this opportunity to seek for support from PANDEF, from leaders in Niger Delta, to work with us so that we can, on a sustainable basis, increase production, so that we can bring that deposits from the ground to the market, and so your states will get more money by way of derivation,” he said.

Lokpobiri said the federal government would also rake in more funds and consequently, communities in the Niger Delta region can legitimately demand that “from this money you’ve gotten from our area, please come and do this for us”.

“And the reason why some very hard decisions were taken by Mr. President, which has to do with the issue of subsidy, is because we realise that this subsidy doesn’t benefit those of us from south-south,” the minister said.

‘FG, STATES HAVE MORE MONEY TO SPEND DUE TO SUBSIDY REMOVAL’

Lokpobiri said “in the name of subsidy,” trillions of naira have been spent in the country.

However, he said the effect of subsidy removal is that there is more revenue to be shared by three tiers of government.

“That money that was used for subsidy is now available and shared to three tiers of government for more development of our area,” he said.

“So we are likely going to get more deposits but no matter the volume of deposits we have, it would not translate to any tangible benefit to our people, unless we work together under a very peaceful environment, and extract this crude oil and gas to the market.

“That is when we will get value from what God has given to us. Otherwise, I am over 50 years old and people have been lamenting till today; the time for lamentation is gone.”

Otherwise, the minister said the region would be completely overwhelmed by the issue of energy transition.

Lokpobiri reiterated that it is in the region’s interest “for us to collaborate with others now so that more companies can come and extract more volumes for the benefit of our own people”.