FG withdrawal of $1bn from ECA: South South govs demand 13% derivation

South South governors want the Federal Government to pay 13 percent derivation (of the $1 billion, sourced from the Excess Crude Account, to fight insurgency,) to oil-producing states of the Federation.
Rivers State Governor, Nyesom Wike, led the charge when Speaker of the House of Assembly, Ikuinyi Owaji-Ibani presented the Leadership Newspaper Governor of the Year Award 2017 to him at Government House, Port Harcourt, yesterday.
Wike was categorical that the $1 billion has been withdrawn from the ECA and so, wants the federal government to pay 13 percent derivation to oil-producing states.
The governor noted that government knows it is mandatory for the constitutional procedure to be followed because he has been officially approached to lobby the Assembly to approve the resolution mandating withdrawal of the said funds.
He said while the state government is not against the fight against insurgency, required constitutional procedures must be respected.
“They have approached us to lobby for the passage of a resolution by the House of Assembly; approving the $1billion withdrawn from the Excess Crude Account to fight insurgency.
“The law is clear. Every proceeds from oil, you must remove 13 percent derivation  for oil-producing states.
“We cannot be stampeded into doing the wrong thing.
“So, where is the 13 percent derivation for oil-producing states?
“In fighting insurgency, you must respect the law.”
He said negative actions against the state government were targeted at denying Rivers its balance of the Paris Club Debt refund.
Wike also informed Assembly members of the federal government’s refusal to release Budget Support Fund to Rivers when other states had reportedly received such support.
“If you criticise the government, they deny the state funds due to it. This is a government that claims it is fighting corruption,” he reiterated.
The governor commended the Assembly for its support, and urged the chamber to stand firm as the state approaches 2019.
Wike also said that the numerous successes recorded by the state were due to the sacrifices of the people; in the face of dwindling resources.
Across the pond, in Delta State, Chief Press Secretary to Governor Ifeanyi Okowa, Mr. Charles Aniagwu, said his principal’s position is not different from what his party, the People’s Democracy Party (PDP) has said concerning the issue.
He said it was unfavourable to oil-producing states for the federal government to get its own share of allocation and still partake in the 13 percent derivation.
In Bayelsa, Commissioner for Information and Orientation, Mr. Daniel Iworiso-Markson said Governor Henry Seriake Dickson made his position known on the matter, in a letter to the federal government, months ago.
According to a statement issued on Dickson’s position then, the Bayelsa State Government had actually threatened to drag the federal government to court if it refuses to deduct the 13 percent derivation component of the $1 billion.
Iworiso-Markson had said in the statement that the state government was insisting that the 13 percent derivation component of the money be deducted and sent to the various oil-producing states in the Federation; as earlier demanded.
Iworiso-Markson quoted Dickson as having explained that withdrawing the $1 billion without deducting and paying the 13 percent derivation to the oil-producing states would amount to arm-twisting them to make double contributions to the security fund.
The governor said wholesome withdrawal of the fund, inclusive of the 13 percent derivation, would mean that oil-producing states would be making double contributions because they would be contributing their allocations, just as other states and then, the 13 percent derivation constitutionally provided for, to address security and other pressing needs in the states.
Dickson demanded that the 13 percent derivation component of the fund be deducted and deployed in the oil-producing states; to address peculiar security challenges in the region.
“Bayelsa State Government will approach the court to enforce deduction of the 13 percent derivation component from the $1 billion ECA funds which the federal government claims it plans to withdraw to tackle insecurity.
“We have held meetings with the Vice  President, Yemi Osinbajo, on this issue.
“We even backed it up with a formal letter to the President, through the vice president, which was taken to Abuja, by the Deputy Governor and delivered by hand, to the vice president; to underscore the importance we attach to the issue in question.
“Our position remains the same; while the state government is not opposing the planned withdrawal of the fund for security and, indeed, the general well-being of the society, it would be unfair and unjust to pull out the funds without releasing the 13 percent to the oil-producing states.
“An arrangement that compels a group of states to contribute twice to the fund while their counterparts contribute only part of their statutory allocation cannot be said to be just.
“The constitution is clear on this and we shall approach the court to advocate our position…” Dickson said then.
-Sun