Reps to debate bill seeking to raise derivation fund from 13% to 50%

The house of representatives is scheduled to debate a bill to raise the derivation fund for states from 13 to 50 percent.

The bill is co-sponsored by Awaji-Inombek Abiante from Rivers and eight other lawmakers.

The proposed legislation was listed for consideration during the plenary session on Wednesday but was deferred to next Tuesday to allow lawmakers to study the bill.

Section 162 (2) of the constitution stipulates that 13 percent of the revenue generated from natural resources, such as oil and gas, should be paid directly to the states where the resources are extracted.

However, the constitutional amendment bill intends to increase the figure to 50 percent.

In his legislative brief, Abiante said the bill, when passed into law, will address “the myriads of issues bordering on the meagre” 13 percent derivation fund paid to states on revenues derived from their domain.

“Some of us may feel that this section that we seek to amend makes no meaning to them because their states are not presently affected but it is pertinent to ask, what about the future? Let us remember that every state in the Federal Republic of Nigeria is blessed with abundant natural resources capable of turning the country’s economic fortunes,” the lawmaker said.

“The increased interest by the federal government to reduce the dependence on oil and gas as the mainstay of our economy means attention will be shifted to the solid minerals.

“The huge environmental impacts of the exploitation of natural resources on the host communities are devastating.”

Abiante said the bill would address the pollution caused by oil spills, curb hunger, and tackle insecurity in the affected states.