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Give Derivation Fund Directly To Host Communities, Group Tells Buhari

Give Derivation Fund Directly To Host Communities, Group Tells Buhari


Edo State branch of the Oil and Gas Host Communities of Nigeria (HOSCON) has called on President Muhammadu Buhari to cause the direct remittal of derivation fund to host communities just as has been done in the case of state legislatures and judiciary. In a statement issued in Abuja on Wednesday by Deacon Friday Osazuwa and Pastor Osariemen Paul Okpamen, Chairman and Secretary, respectively, the group said the move will grant the communities fiscal freedom. The fund currently reaches the host communities through their various state governments. HOSCON, which noted that the practice of paying the fund to state governments over the years is a contravention of the constitutional provision for the fund, reminded President Buhari that the provision for the Derivation Fund is actually done to take care of the peculiar economic and ecological side effects of oil and gas operations on the communities. HOSCON went further to advise the President that obeying the Constitution in that regard would not be difficult, suggesting that he reached to the people for whom the constitutional provision was made by working through the Presidential Derivation Committee (PDC) and State Implementation Committees (SIC). It maintained: “Of a truth, 13% Derivation Fund is the only first-line charge on the Federation Account. The federal government is second line charge, the state government is third line charge while the local government is fourth line charge. This is the position of law as confirmed by the Revenue formula. “Therefore it is illegal and unconstitutional to pay the 13% derivation fund which is the first-line charge through State Governors, third line charge on the Federation Account. “Section162(2) of the 1999 constitution as amended ‘Provided the principle of derivation shall be constantly reflected in any approved formula as not being less than 13% of the revenue accruing to the Federation Account directly from any natural resources’.

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OLAS NEWS 01 Jul, 2020 16 views