A socio-ethnic movement in the Niger Delta, Movement for the Survival of the Ogoni People-USA, has chastised many States for depending solely on federal allocation for survival.
The position of MOSOP-USA on the issue of federal allocation was contained in a press statement sent to The Eagle Online on Friday.
MOSOP-USA, therefore, recommended the adoption of a revenue distribution formula among the three tiers of government that will encourage production and discourage a dependent sharing mentality.
The recommendation was contained in a memorandum signed by the President of the movement, DineBari Augustine Kpuinem, and submitted to the Senate Committee on Constitution Review recently.
According to Kpuinem: “It is absurd that most States only depend on the derivation coming from the Federal Government without putting in place internal generation of revenue mechanisms.”
- Edo 2024: INEC denies obstructing inspection of BVAS, election materials
- Lagos-Calabar highway first phase set to be completed by May 2025, says Umahi
- Breaking: NNPCL increases price of petrol again
- Rivers: Wike gives Gov. Fubara condition for peace
- CIBN, Bank CEOs decry social media attacks, blackmail
He noted that the economic regression being experienced in the country is as a result of misappropriation of revenue allocation derived majorly from oil exploration in the Niger Delta.
“The funds allocated to the various state governments in oil producing states are not judiciously and properly spent across the indigenous people of the states,” he alleged.
Kpuinem added that despite the resources exploited from the soil of the Niger Delta region, successive governments in the country have failed to properly allocate the revenue due to the people, which has resulted in poor socio-economic output in the region.
MOSOP-USA asserted that the oil producing States are not happy with the 13 percent Resource Derivation Fund and therefore, called for the amendment of Section 162 (2) of the 1999 Constitution that deals with derivation funds to include a clause that will ensure accountable application of the fund.
The memorandum also urged the States that receive derivation funds to set up independent agencies run by men of integrity for proper application of the fund for the development of the States.
“The fund should be paid to these entities and not included in the state government budget, and subjected to the governance structure similar to an amended fashion of the Host Community Development Trust in the Petroleum Industry Act (PIA),” the memorandum stated.
MOSOP-USA further recommended full autonomy for local governments in the country, saying that the third tier of government should be independent of the State.
The group said: “Local government councils should be given full financial autonomy to enhance their performance and to maximize productivity without prejudice to their creation and oversight by the state governments.
“This requires the abolition of the State Joint Local Government Account.”
