DESOPADEC: Ijaw Leader Pushes For Upward Review Of 50 Percent Derivation Funds

President of the Federated Niger Delta Ijaw Communities (FNDIC),Chief Bello Oboko has called for the upward review of the 50 percent of the 13% derivation funds accruing to Delta State Oil Producing Areas Development Commission (DESOPADEC).

Oboko spoke in his position paper on the ongoing efforts to amend the DESOPADEC law, alleged that oil producing communities were being cheated of the 13% derivation funds and therefore called for upward review of the percentage accruing to the state oil commission.

He lamented that oil producing communities are being deprived of 85% derivation funds only to be further deprived of 50% of 13% derivation funds in the state.

According to the Ijaw leader, the derivation fund ought to be 75 percent against the 50 percent the state government often releases to the state oil commission.

"This is no longer acceptable. Let the amendment now raise the derivation funds to 75% in keeping with the contemplated increase in the percentage of the funds in the Principal Law”.

Besides, he said that the Federal Government target in the statutory disbursement of the 13% derivation funds was the oil producing communities/areas.

According to him, oil producing communities/area extends to five (5) nautical miles from the point of production.

Oboko further said production quantum should be the basis for all DESOPADEC engagements in furtherance of the derivation principle which determined the amount of funds that accrued to Delta State.

He posited that production quantum should first reflect in the ethnic constitution/representation in the Board of DESOPADEC which will ensure the application of the principles of production quantum in all of the commission’s engagements.

The Ijaw leader also advocated a representation profile of two (2) Itsekiris, two (2) Ijaw, two (2) Urhobo, one (1) Isoko, one (1) Ndokwa members at the DESOPADEC Board as currently approximately reflective of the production quantum principle.

He also advocated for the setting aside of 25% of the funds proportionately split into ethnic accounts for investment purpose as oil is a depleting resources.