Orashi National Congress Demands Accountability For 13% Oil Derivation Funds To Niger Delta States

The Orashi National Congress, ONC, has issued a call for heightened accountability regarding the 13% oil derivation funds allocated to the nine oil-producing states in Nigeria from June 2023 to date.

During an emergency meeting held on 14th August, 2024, under the leadership of Most Senior Comrade Ambassador Emeni Ibe, President General of the Orashi National Congress, concerns were raised over the lack of visible impact these funds have had on the lives of residents in the oil-producing communities, particularly in Rivers State and the oil-rich Orashi region.

The funds, allocated over a one-year period, have been substantial. According to data from the Federation Account Allocation Committee (FAAC) and statistics provided by Statisense, the following amounts were received by each of the nine states:

1. Delta State — ₦211.69 billion
2. Akwa Ibom State — ₦127.77 billion
3. Bayelsa State — ₦115.53 billion
4. Rivers State — ₦110.96 billion
5. Edo State — ₦22.36 billion
6. Ondo State — ₦19.45 billion
7. Imo State — ₦8.88 billion
8. Anambra State — ₦6.76 billion
9. Abia State — ₦5.03 billion

Despite these significant allocations, the Orashi National Congress noted with concern the absence of tangible developments in the oil-producing communities. Specifically, in Rivers State, which received ₦110.96 billion, the Congress highlighted the lack of improvement in the lives of the people within the Orashi region.

The Congress expressed its dismay at the ongoing trend where state governments fail to utilize the derivation funds for the intended purpose of developing and improving the lives of the communities most impacted by oil production activities. The ONC further emphasized that this trend has led to the marginalization of these communities, which continue to bear the environmental and social costs of oil extraction without reaping the financial benefits.

President General Emeni Ibe, in his address, underscored the need for transparency and accountability in the management of these funds.

He advocated for a review of the current system, proposing that the funds be managed directly by the oil-producing communities themselves, similar to the structure established under the Petroleum Industry Act (PIA). This, he argued, would ensure that the resources are channeled towards the development of these communities, thereby improving their standard of living and addressing the long-standing neglect they have suffered.

The Orashi National Congress, in its resolution, called on the governors of the Niger Delta states, and particularly the Governor of Rivers State, to provide a full account of how the 13% derivation funds have been spent from June 2023 to date.

The ONC also urged civil society organizations, the media, and other stakeholders to join in demanding accountability from the state governments to ensure that the funds are used for the benefit of the oil-producing communities.

As the call for transparency grows louder, the Orashi National Congress remains steadfast in its commitment to advocating for the rights and welfare of the people in the Orashi region and other oil-producing communities across the Niger Delta.