The 10th House of Representatives is set to consider a Bill seeking an increase in derivation funds for States with mineral resources from not less than 13% to at least 50 percent.
The Bill, sponsored by the member representing Andoni/Opobo/Nkoro Federal Constituency, Rivers State, Awaji-Inombek Abiante, along with eight others, aims to amend Section 162(2) of the 1999 Constitution (as amended).
Initially scheduled for deliberation during yesterday’s plenary session, the bill was deferred to Tuesday next week, to allow members sufficient time to obtain copies and make informed contributions.
In his legislative brief, the lawmaker noted that the current 13 percent Derivation Fund is “grossly inadequate”, calling it “a misrepresentation of the spirit of pre-independence negotiations and agreements”. As a result, he proposed an increase in the derivation fund from “not less than 13% to not less than 50 percent”.
He emphasised that the amendment is not only relevant for today but also for the future, cautioning that while some may feel unaffected now, “what about the future?”
The Peoples Democratic Party (PDP) lawmaker reminded his colleagues that “Every state in the Federal Republic of Nigeria is blessed with abundant natural resources capable of transforming the country’s economic fortunes. The Federal Government’s increased interest in reducing dependence on oil and gas as the backbone of our economy means more focus will be placed on solid minerals”.
Justifying the call for an increase in derivation funds, he stated, “The significant environmental impacts of resource exploitation on host communities are devastating. These include, but are not limited to, pollution of the environment through oil spills in the case of oil exploitation, and the degradation of the soil in the case of solid mineral extraction”.
He highlighted the frequent oil spills in the Niger-Delta, which sometimes result in serious fire incidents, destroying lives, property, and farmlands. He added that sea and water resources are also affected, and the destruction of the environment in areas where solid minerals are mined has impacted people’s livelihoods.
