Oil income: Increase derivation method to 50%, PANDEF tells FG

The Pan Niger Delta Forum (PANDEF) Wednesday demanded a rise in oil derivation to 50 per cent from the present minimal of 13 per cent, urging the National Assembly to abolish the onshore/offshore dichotomy in income allocation to oil-producing states.

The discussion board additionally insisted on the accelerated completion of the Lagos-Calabar Coastal Highway, renewed funding in fuel infrastructure and the revival of modular refinery growth, warning that the Niger Delta’s huge financial potential should not be allowed to stay untapped.

PANDEF, which marked its tenth anniversary, made the calls for in a communiqué issued on the finish of a gathering of its Board of Trustees and National Executive Committee held in Abuja.

On oil derivation, the discussion board stated the present allocation had did not replicate the environmental and developmental burdens borne by oil-producing communities over the many years.

“The meeting observed that this provision has remained unchanged for over two decades, notwithstanding the enormous environmental degradation, ecological challenges, and developmental burdens borne by oil-producing communities across the Niger Delta,” it stated.

 PANDEF referred to as for a rise within the allocation “from the current minimum of 13% to a minimum of 50%” to allow oil-producing states and communities to deal with developmental deficits, environmental harm, well being hazards and the social and financial penalties of petroleum exploration.

The discussion board additionally challenged the National Assembly to show the braveness to abolish the contentious onshore/offshore dichotomy, which it stated continued to undermine the pursuits of coastal communities.

It referred to as on the federal authorities, the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) and the National Assembly to “urgently address the longstanding and contentious issue of the onshore/offshore dichotomy in revenue allocation.”

Explaining its place, PANDEF stated offshore oil and fuel actions additionally affected the livelihoods of coastal populations, notably by harm to marine ecosystems and fishing grounds.