DERIVATION EARNINGS: Insiders open fresh cans of worms in oil-bearing states

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  • CSOs, opposition parties knock governors for ‘prodigal’ handling of revenue
  • Host communities fume over neglect, 3 governors under fire
  • On this, Wike should be commended – Analysts

BY TIMOTHY AGBOR, BENEDICT NWACHUKWU, MAYOWA SAMUEL AND BRIGHT JACOB

Across the country, and in particular, Niger Delta areas, the feeling of palpable anger, huge disappointment and frustration have continued to trail the revelation by Rivers State Governor, Nyesom Wike, on the payment of 13 per cent derivation fund collected from the Federal Government by oil producing states in southern Nigeria.

In separate interviews with The Point, Civil Society Organisations, opposition parties and other stakeholders claimed that indigenes of the core oil-producing communities of these states were wallowing in abject poverty and that their state governments had not been able to provide infrastructure and projects that were commensurate to the dividends of the oil revenue that had accrued to their states.

While they condemned the profligate and prodigal manner the huge resources in the region had been managed by their governors who were described as “narrow-minded and lacking vision,” they regretted that, given the huge resources made available to them, nothing should have stopped them from standing toe to toe with Lagos State when they add monthly allocations and internally generated revenue.

They therefore demanded full and transparent disclosure instead of what they described as the “cock and bull” explanations some state governments had offered, with stakeholders threatening fire and brimstone.

A public affairs analyst, Marvins Abhulimen, said that Wike was right to have disclosed that the oil-producing states got their respective share of the 13 per cent derivation arrears paid by the Federal Government to all the Niger Delta states.

Abhulimen also agreed that Wike’s revelation was good for the polity, as it had made the other governors of the Niger Delta area, who usually came up with excuses regarding funding for their respective states, to “sit up” and be more accountable to their people.

Going forward, he said it would be good if there was an institutionalised way citizens could get information about the amounts their local and state governments got from the Federal Government.

Abhulimen said, “The expose by Wike is good for the polity. It has made others (governors) to sit up, because everyone is now asking them (governors) to give an account (for funds received).

“Before now, everyone had been giving excuses, saying that crude oil price is down and Nigeria is not producing crude oil, or that revenue allocation has dropped. But when Wike said they got 13 per cent derivation arrears, everyone is now asking their governors to disclose what they received.”

“However, it is also good we have an institutionalised way of knowing what each local or state government gets, and the information is available for the use of the people in putting their elected officials on their toes and ensuring they remain accountable,” Abhulimen said.

On the level of development in the oil-producing states in view of other sources of income like the monthly Federation Account Allocation Committee and Internally Generated Revenue, he said, “I have been to Rivers State and I saw the transformation Wike has done there on the roads and Port Harcourt city itself.

“He has about 10 flyovers constructed within the last four years. And he has just started about three new ones. The moment he got his caterpillars there, we saw the speed of work. So, yes, Wike has projects to show. In fact, other governors call him Mr. Project.”

On the contrary, however, he couldn’t say the same for the other South-South governors, though he also gave a pass mark to the Akwa Ibom State governor, noting that “massive construction works” were going on in the state currently.

“When you come into Edo State, the link road, the road coming in from Delta State into Edo State, is in a mess, and the governor has not been able to fix it, knowing that the road is critical to your own state”

He noted that the state’s airline, Ibom Air, was a good business decision.

His review of the Delta State governor was scathing.

According to him, after Wike’s utterances, the Governor of Delta State, Ifeanyi Okowa “started showing us roundabouts”.

“So, where are the roads? We are talking about billions here. What are they talking about?” he queried.

He also slammed the Governor of Edo State, Godwin Obaseki, for giving the impression that the state lacked adequate funding.

“It is just like he’s always in a quarrel with different groups of people, building a shopping complex and destroying the Central Hospital for a museum.

“When you come into Edo State, the link road, the road coming in from Delta State into Edo State, is in a mess, and the governor has not been able to fix it, knowing that the road is critical to your own state,” Abhulimen added.

He also claimed that Benin City was “now a shadow of itself” and that before the governor was re-elected for a second term in office, the people had high expectations for him and “expected that he would deliver”, knowing the battles he had with his former “godfather”.

Abhulimen insisted that the governors of the Niger Delta states had disappointed the people and not lived up to expectations.

He said, “The extra amount of money they get from crude oil derivation is enough to accomplish a lot of things. We don’t see any achievements on their part.

“On a good day, they should be competing favourably, toe-to-toe, with Lagos, in terms of infrastructure, but they have been small-minded and are not visionary.

“Whenever you look at the subsidies the Niger Delta states have received and what they delivered, you will feel a sense of loss at the kind of characters that are presiding over the affairs of the region.”

“Wike opened a can of worms so that everyone could actually see (what is happening). It’s not like Wike was fantastic to that extent, but you can see that it’s very easy to shine. The little that he gives, everyone can see and appreciate it. Other governors are not doing that, and Delta State got more (funding) and that’s why Delta is a pitiable state,” he concluded.

Better Living Foundation and Capacity Development, a civil society organisation in Ondo State, told The Point that the state government had not judiciously utilised the oil fund.

It alleged that the indigenes of the state’s oil-producing communities had long been abandoned by the state government.

Chief Executive Director, BLFCD, John Adedeji, said natives of Ilaje and Ese-Odo communities, where the oil was being produced, complained that they only heard of these derivation funds in the news but there was nothing in their communities to show for it.

Adedeji contended that the state government had been concentrating its developmental efforts in Akure, the capital city.

“The Ondo State Government has not judiciously utilised the derivation funds and neither has it done anything worthwhile to show development. We even had a meeting on this issue last week and we all agreed that they have done nothing. It all shows leaders without commitments. We had meetings with the NDDC axis in Ondo State and they complained that they were only hearing this money being mentioned on paper and that nothing was happening in their communities. The Niger Delta indigenes in Ondo have not benefited from the derivation fund.

“The Governor is only doing some things in the state capital. Like in the State House of Assembly, he commissioned some things there on Friday. This 13 per cent oil derivation fund should be first channeled to the affected oil-bearing communities and not in the capital. For instance, he commissioned solar in the state Assembly and refurbished their office in the parliament with NDDC money. He is only channeling the oil derivation fund to the state capital while the people in the oil-rich communities have been abandoned,” he stated.

Asked to comment on the level of development in the state generally, he said, “In view of other sources of funds in the state, the governor has been trying to utilise this but when we talk about this 13 per cent derivation, those who really have it and suffer the consequences of this oil exploration are not getting anything in return. So, the government should develop their communities. They have been abandoned.”

In the same manner, the leading opposition People’s Democratic Party in the state has threatened to embark on a public demonstration to force the state governor, Rotimi Akeredolu, to explain what he used the fund to do in the state.

State PDP Publicity Secretary, Kennedy Peretei, said there was nothing to show that Ondo is an oil-producing state, adding that the level of achievements of the administration wasn’t commensurate with the huge funds received.

In Edo State, the Indomitable Youth Organisation, a pro-youth society organisation, has declared that Godwin Obaseki has yet to tell the people how he expended the N2.1 billion oil derivation that accrued to the state.

Project Director, Bright Oniovokukor, said, “So far, we only heard that the governor got the money, which he also confirmed. But he has not been able to tell us what he used this money for. We have not been able to ascertain if he used the money as regular government duties or for any intervention. Until Wike raised the issue of what he used his own money for and that other governors should be asked to account for theirs, nobody knew if such money existed. In Edo State, the government confirmed that the Federal Government paid the money but we don’t know what the money was used for.

“The governor completed and renovated the secretariat complex and there are a couple of roads he did and we are not okay with the quality. In education, we hear it on paper but physical visits do not reflect what is being mentioned, whether in the news or on paper. So, we will still score him low on development compared to the noise he has been making. Many of the things he keeps saying he wants to do, yes, he has entered into agreements with some organisations but those things have not manifested and he has about two years to the end of his tenure. Every developing city should open up and expand but he keeps approving and establishing things that would further choke the state.”

A chieftain of the All Progressives Congress in Delta State and former Director-General of Delta State Traffic Management Authority, Stephen Dieseruvwe, argued that the Governor Ifeanyi Okowa-led administration in the state was being economical with the truth.

Quoting the figures supplied by the Senior Special Assistant to the President on Media and Publicity, Garba Shehu, the former Adviser at Monitoring and Evaluation Group of Nigeria, faulted the claim by the Delta State Government that “contrary to the ‘revelation’ by Wike, Delta had only received N14.7 billion in three quarterly installments of N4.9 billion each”.

Dieseruvwe insisted that Delta State received a N134.4 billion refund in two years.

He insisted that the money came from oil derivation, subsidy and SURE-P refunds.

“Delta State’s share of the 13 per cent oil derivation, subsidy and SURE-P refunds from the Federation Account in the last two years, 2021-2022 amounts to: (1) N110 billion (13 per cent derivation fund on withdrawal from ECA without deducting derivation from 2004 to 2019). (2) N14.8 billion (13 per cent derivation fund on deductions made by NNPC without payment of derivation).

(3) N1.4 billion (13 per cent derivation exchange rate differential on withdrawal from the ECA).

(4) N4.7 billion (withdrawals for subsidy and SURE-P from 2009 to 2015).

(5) N3.5 billion (refund to local government councils on withdrawals for subsidy and SURE-P from 2009 to 2015 paid in November 2022).

“Total: N134.4 billion (This excludes the monthly FAAC allocation in the period under review). Source: Federation Account Department, Office of the Accountant General of the Federation,” he stated.

‘WHY GOV. WIKE SHOULD BE COMMENDED’
Socio-political and economic commentator, Julius Joseph, told The Point that the Governor of Rivers State should be commended for revealing what his colleague governors would have gladly concealed.

He said, “Thank God for someone like Wike. Love him or hate him, he is a man of the people. He has nothing to hide that is why he opens up and speaks the truth. We should commend him for revealing the money other governors and their cronies were hiding. They are now struggling to defend themselves. It’s most unfortunate that people can do this to those who voted them into power, entrusted them with their wealth and everything.

“How many months do many of them have to leave office? They would have carted millions of Naira away and the incoming governors will meet empty treasury. The CSOs should keep track of this and follow it up even after the tenure of these governors and make sure every dime is recovered. This is why we desire that any man who will win the 2023 elections and fight corruption head-on should emerge.”

“Thank God for someone like Wike. Love him or hate him, he is a man of the people. He has nothing to hide that is why he opens up and speaks the truth. We should commend him for revealing the money other governors and their cronies were hiding. They are now struggling to defend themselves”

A political heavyweight in Akwa Ibom State who preferred anonymity described the act as a crime against the state and the people who voted them in.

“Can you imagine such an act? In a country where people are suffering, their governors are collecting money meant for the development of the states and creation of employment and decided to starch them in their secret safes. It’s sheer wickedness and should be condemned. In fact, I am one of those commending and praising Governor Wike for opening up and bringing the evil deeds to the open,” he said.
APC Chairman in Edo State, Col. David Imuse (retd), alleged that the impression in Edo was that the money was hidden from the people.

He noted, “We’ve made it very clear that in the first instance, the governor, (Godwin Obaseki), hid the money from the people. Nobody made mention of it, it was not reflected in last year’s budget, it was also not reflected in the proposed budget for 2023 that he had just presented to his illegal House of Assembly. So, Edo people are at a loss as to when he collected the money, the total money collected and what the fund was used for.

“That was why we challenged him to reveal the amount received, the jobs he executed with the fund, the contractors who did the project, and how much the project cost, so that Edo people would be able to evaluate what he has done and what he has not done. To us, everything surrounded by this government is a scam of the highest order. We have never had it so bad.”

Praising Governor Wike, he said, “I will say with all modesty that Governor Wike is God-sent. If he had not told the public about this fund, other governors would have remained mute. They became deaf and dumb. But they are now suddenly trying to explain the unexplainable. It is terrible because they didn’t even tell their people that they got any money, thanks to Governor Wike, who made his own public and even commended our president that if not for him, they wouldn’t have gotten this refund. The projects we are all seeing in Rivers today are a result of the 13 per cent derivation.

“He cannot account for it, you know it and I know it. But by the time he comes out with a belated explanation, you’ll discover that it’s all a scam. This is the greatest scam that has ever happened to this state since its creation in 1991.”

Saying he could only speak for Edo, Col. Imuse said, “In Edo State, we are at a loss. Edo is in a backward race to the 17th century. Everything here in Edo has collapsed, and all the legacies in Edo have been destroyed. The man has mortgaged the conscience of this state to his friends and cronies. If you are resident in Edo, you will understand what I’m telling you. He cannot point to one project that he had executed in the last six years. He will tell you he renovated the state Secretariat. Somebody built it, you are going there to paint it and you say you have renovated it. You cannot point to one Trunk A road that he constructed in Edo. This is a government of supermarkets and for supermarkets.

“Everything around Governor Obaseki is about MoU without result. We can tell you that Obaseki has signed more MoUs, undertakings, and agreements than any government in Nigeria since 1960.

“It’s one thing to receive money, it’s another thing to say what you have done with it. For those in Lagos, they can be showing you simulations on TV, showing the fantastic jobs that are being done but for those in Edo, all those things you see on TV are scams. Just mention one project you know, and let us go and show you the site.”

Governor Douye Diri of Bayelsa State confirmed recently that the state had received refunds of arrears of the 13 per cent of oil derivation proceeds from the Federal Government.

The Chief Press Secretary to the Governor, Daniel Alabra, disclosed this in a statement in Yenagoa.

The governor, however, did not state how much had been received so far.

But a statement signed on Friday by the Senior Special Assistant to the President on Media and Publicity, Garba Shehu, revealed that Bayelsa State got N92.2 billion with an outstanding payment of N55 billion.

Ironically, the Federal Government, on Wednesday, named Sokoto and Bayelsa states as poverty capitals of the country.

The claims were made in Abuja during an interactive session with newsmen by the Minister of Budget and National Planning (State), Clem Ikanade-Agba.

“To say in the past, we’ve always looked at monetary poverty. But poverty like we know has different indices, different intensity and different causes. And it is for this reason that I went around the 109 senatorial districts in Nigeria to carry out those surveys and to be able to say, specifically, where this hardship is.

“The result clearly shows that 72 per cent of poverty is in the rural areas. It also showed clearly that Sokoto State is leading in poverty with 91 per cent. But the surprising thing is Bayelsa being the second in terms of poverty rating in the country. So you see the issue is not about availability of money. But it has to do with the application of money,” the minister said.