Akwa Ibom laments non-payment of 13% derivation oil revenue

Akwa Ibom government has lamented the non-payment of 13 percent derivation oil revenue by the Federal Government as stated in the  1999 constitution as amended. The Federal Government began the payment of the 13 percent derivation principle in 1999 to oil producing states and has never defaulted until now. Governor Udom Emmanuel who made this known in Uyo, the state capital said the state has not been paid for two months adding that the matter has been reported to the appropriate authorities.  

It was not immediately clear why the Federal Government has not complied with the provision of the constitution after the issue had been long been resolved.   According to investigations, the non-payment of the derivation which been contentious in the past could be as a result of the proposed Petroleum Industry Governance Bill which seeks to give special recognition to oil bearing communities in a  separate bill.

  Furthers checks have revealed that the minister of state for petroleum resources, Ibe Kachikwu has  been quoted as saying that “government’s position is to enact separate laws to take care  of the controversial issues including  host communities as well as derivation.’’ Meanwhile Governor Udom Emmanuel has made a case for indigenes of the state to be awarded oil blocks by the Federal Government.  

According to the governor, he has made a passionate appeal to the Federal Government to allow indigenes of the state to own and manage oil blocks.   “So if we are good for other environmental degradations, we are also good enough to own those assets.

I mentioned some nationalities that are being allocated those oil blocks, and reassured that we too can manage it if not even better. If we talk about the issue of technology, we can buy technology if we don’t have it. Let them allocate to us the oil blocks and we will buy the technology and then find a way to manage it,’’ the governor said.  

Speaking against the background of the recent meeting of Niger Delta elders with President Muhammadu Buhari in Abuja, Udom who was a member of the delegation said apart from the oil blocks, the state also requested that the Federal Government should revisit the issue surrounding the Aluminium Smelter Company of Nigeria (ALSCON) at Ikot Abasi, Akwa Ibom State saying that at the moment that the multimillion plant is wasting.   “I raised the issue of ALSCON in Ikot Abasi, that is a wasted asset.

I can create several profit centres out of ALSCON. You need to go there and see how federal government assets are laying waste. The President has reassured to look into those aspects and I’m sure he will do something,’’ he said.