President of the Host Communities of Nigeria Producing Oil and Gas, HOSTCOM, Dr. Mike Emuh, has called on the Federal Government to ensure that the 13% derivation fund for oil-producing areas is paid directly to host communities not state governments.
Dr. Emuh who made the call at a news conference in Abuja, commended President Bola Ahmed Tinubu for commencing the implementation of the long-awaited 3% Operating Expenditure (OPEX) fund for host communities as provided in the Petroleum Industry Act (PIA), describing it as “a historic first” in Nigeria’s governance of oil wealth.
He applauded President Tinubu’s administration for taking bold steps where previous governments only made political promises without tangible delivery.
“To build is never easy, but to destroy is very easy. I congratulate President Tinubu for implementing the 3% OPEX. This is a big win for the people,” he stated.
Dr. Emuh decried what he described as decades of mismanagement and diversion of funds meant for oil-bearing communities by successive state governments.
He criticized the current structure in which 13% derivation and now 30% elevation in some policy proposals is paid to state governments, leaving host communities impoverished despite their natural wealth.
“Let me make it clear: I, as national chairman, have never benefited one kobo from the derivation. The host communities have never received 1%. The whole 13% derivation is a political game and a mirage,” he lamented.
He argued that Section 162(2) and (4) of the 1999 Constitution, as amended, clearly stipulate that derivation benefits should accrue to the communities whose environments have been destroyed by oil exploration and exploitation activities.
“The Constitution recognizes that derivation is compensation for the loss of our fishing, farming, and livelihood. It is not a gift to state governments” Dr. Emuh emphasized.
He said that despite trillions of naira reportedly disbursed over the years to Niger Delta states in the name of derivation, many oil-producing communities remain in abject poverty, lacking drinking water, health facilities, and basic infrastructure.
Dr. Emuh urged the Federal Government to replicate the model adopted in implementing the 3% OPEX by directing that the 13% derivation be paid directly into accounts controlled by host communities, under transparent oversight.
“Just like the IOCs and LOCs are paying the 3% directly to communities under the PIA, the federal government should set up a special committee like Shagari and IBB did to manage the 13% derivation and pay it straight into community development accounts,” he proposed.
He warned that allowing state governments to continue receiving derivation on behalf of host communities would amount to perpetuating injustice and further alienating communities from their constitutional entitlements.
Dr. Emuh called on lawmakers involved in the ongoing constitutional amendment process to prioritize a clause that mandates the direct remittance of derivation funds to host communities.
He praised Senator Ned Nwoko and other legislators who have shown interest in supporting host community rights and development.
Dr. Emuh also called on the Niger Delta Governors Forum, the Ministry of Niger Delta Affairs, the Niger Delta Development Commission (NDDC), and other stakeholders to support the campaign for direct disbursement of oil wealth to host communities.
