The opposition to the provisions of the Petroleum Industry Bill (PIB) by Northern politicians has been flayed by the Governor of Delta State, Emmanuel Uduaghan.
The Delta State Governor discussing with reporters in Asaba on Friday said the North should see the PIB as a great concession, especially in the area of derivation.
Uduaghan said, “We have moved from the stance of 100 per cent derivation. Ideally, what we should be talking about is not even 100 per cent derivation. We should be talking about leaving the oil for the oil-producing communities and then ask them to pay taxes to the federal government”.
He added, “That has been the argument but with time and by sensitivity, we have moved to say, okay, let us leave it at 50 per cent. And that’s what some of us believe in.But if the PIB is now saying we should just improve on it by only 10 per cent royalty to the oil-producing communities, it’s a big concession.
“I don’t think that it’s something that any group of persons should be quarrelling about. We’ve had times in this country when derivation was 100 per cent. At that time the oil-producing communities did not grumble. Now that it is oil, people are grumbling. What I will appeal to the rest part of Nigeria is that there should be understanding because when the people in the oil-producing communities are happy, they provide an enabling environment for more oil and gas to be produced.
“And the more gas and oil produced, the more revenue that comes to the federation. And the more these non-oil-producing communities will benefit. That is the basic truth. And if we have to do something extra to make people in those areas provide an enabling environment for more production, we should do it.
“In any case, even with the 10 per cent we are talking about, we are even thinking of how it should be managed. There are countries where when such monies are paid, they are put into the trust funds. It is the interests that accrues from the trust funds that are used by the communities. Some of us have made various suggestions on how to do this. I think we should be thinking of how to handle the 10 per cent, not that it should not be paid at all. I think it is unfair to the oil-producing communities. I think it is also a big insult to me when some people are saying I have no right to ask for 10 per cent royalty. It’s an insult and very ridiculous.
“We agreed that the PIB is the best way to move forward apart from the 10 per cent. For goodness sake, let us not take certain persons for granted. Taking the Niger Delta for granted for so many years has brought us to where we are today. I don’t think we should worsen the situation that is on ground.
“If the money comes and questions are being asked how the money is being spent, it is the people from that area who should be asking their leaders this question. Our people would not go to Kano to ask how the Kano State government is spending its money. They would not do that. So, why would they come here to ask me how I’m spending the money? I find it, to say the least, very unacceptable.”