Gov. Diri Calls For Review Of Nation’s Revenue Derivation Formula

By Sunday Etuka, Abuja

Unsatisfied with the 13 percent derivation fund, the Bayelsa State Governor, Senator Douye Diri, has again called for a review of the country’s revenue derivation formula in line with the practice of fiscal federalism.

In a statement on Sunday by his Chief Press Secretary, Daniel Alabrah, the Governor maintained that the country’s lopsided federalism practice had hindered the development of states.

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He spoke in Houston, Texas, when the Ijaws in the United States of America and Canada conferred on him the award of “Icon of Unity and Social Justice.”

The three-day 2024 convention was held under the auspices of the Ijaw National Congress (INC)-Americas.

He queried the existing practice where resource-endowed states in Nigeria, particularly in the Niger Delta, get a paltry 13 percent as monthly allocation from their resources, stressing that the meager fund is impeding developments of the states.

Recall that the 13 percent derivation comes from the federation revenue to oil-producing communities through the state governments as enshrined in section 162, subsection 2 of the 1999 constitution of the federal republic of Nigeria.

Under the current revenue allocation formula, the federal government takes 52.68 percent, the states 26.72 percent and the local governments , 20.60 percent , with 13 percent derivation revenue going to the oil producing states.

Also honoured were the former Nigerian first lady, Dame Patience Jonathan, the Minister of State for Petroleum (Oil), Senator Heineken Lokpobiri as well as renowned author and Ibenanaowei of Ekpetiama kingdom, King Bubaraye Dakolo.

Present at the well-attended event were the President of the INC, Prof. Benjamin Okaba, one of his predecessors, Chief Joshua Fumudoh, Chairman, INC-Americas, Mr. Kenneth Anga as well as former Managing Director of the Niger Delta Development Commission (NDDC), Chief Ndutimi Alaibe among other dignitaries.

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