A South South socio political group, the Niger Delta Civil Society Forum, has written an open letter to President Bola Tinubu, raising constitutional concerns over what it described as the illegal and unconstitutional implementation of the 13 per cent Derivation Fund.
In the letter signed by its Coordinator, Ezekiel Kagbala, and made available to journalists in Warri, the forum argued that the current practice undermines the supremacy of the 1999 Constitution as amended and continues to shortchange oil producing communities in the Niger Delta.
The group stated that oil and gas matters are listed under Item 39 of the Exclusive Legislative List in Part I of the Second Schedule to the Constitution, covering mines and minerals including oilfields, oil mining, geological surveys, and natural gas. It maintained that only the Federal Government acting through the President has jurisdiction over matters on the Exclusive Legislative List.
The forum called on Tinubu to issue an Executive Order to correct the alleged anomalies by ensuring lawful administration of the 13 per cent Derivation Fund. It proposed the establishment of a 13 per cent Derivation Fund Board in each oil and gas producing state and the constitution of a Presidential Monitoring Committee to guarantee transparency, accountability, and strict constitutional compliance.
Citing Section 162 2 of the Constitution, the group noted that derivation shall be not less than thirteen per cent of revenue accruing to the Federation Account from natural resources. It argued that the fund is a first line charge and should be paid directly to beneficiaries before the remaining revenue is shared.
The forum referenced past administrations including Shehu Shagari and Ibrahim Babangida, stating that derivation funds were centrally administered in line with constitutional provisions.
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