A former Secretary to the Government of
the Federation and delegate to the National Conference, Chief Oluyemisi
Falae, has thrown his weight behind the Niger Delta region, saying it
deserves 100 per cent control of its resources.
Speaking to SUNDAY PUNCH, Falae
urged other states of the Federation to approach the issue of resource
control and derivation with the recognition that oil-producing states
had full ownership of their resources.
He said, “We should recognise that the
oil belongs to them. We cannot begin to threaten or abuse them for not
sharing a direct proportion with us.
“We all agreed ultimately that the
owners of the resource should take 100 per cent of the profit. However,
they should allow other areas and states to develop their resources and
sources of revenue before they (Niger Delta) have all the profits to
themselves. That is why we have the solid minerals development fund to
assist their natural resources. Fortunately, every state in Nigeria has
several solid minerals that are already waiting for exploitation and
development.”
Falae argued that the owners of lands
where oil is being explored and produced deserve to take all the profits
as a result of oil companies’ operations on their land.
He said, “What are they fighting for?
Resource control is much larger than derivation. Resource control is
what it says it is — control over natural resources. That’s not
derivation. But in our discourse it’s being reduced to derivation.
“Before any exploration, owners of the
resource should be involved for authorisation. Therefore, the approval
process should include people from the Niger Delta, the Federal
Government agencies that authorise foreign oil companies to look for oil
and produce. We have identified that process at the national
conference.”
Falae, however, pleaded with the
oil-producing states to give other states some time to develop before
they lay full claim to their resource.
“Really, no one knows when exactly other
states will stop feeding on the oil money coming from the Niger Delta.
It should be recalled that before now, the country used to produce coal
in Enugu. We were even exporting coal at that time. Within a year or
two, the coal mine can start generating revenue.
“Delegates to the confab had recommended
that the Ajaokuta steel mine construction should be completed. Very
soon, there’ll be mining of iron ore and between one and three years, we
can begin to generate revenue,” Falae stated.
He said at the moment, states with
petroleum resources cannot determine what percentage they want from the
derivation fund. According to him, the whole country currently depends
on oil revenue and any effort to lay claim to 100 per cent control of
the oil revenue will cause problem.
He added, “In view of this, in the next
five or ten years, these other states would have developed alternative
sources of revenue and in time, the oil-producing states can have total
control of profits accruing from their resources. Similarly, other
states with other revenue-generating mineral resources will have 100 per
cent of the profits coming from their areas.
“In the next three or four years, I
believe some states will begin to generate their own revenue from a
number of resources. In another 10 years, most states should be
comfortable if they are serious in exploiting the natural resources in
their areas.”
He explained that what was causing furore at the confab was the issue of derivation.
Falae said, “The contention of the
non-oil producing states — especially the northern states — is that if
the derivation percentage for the oil-producing areas is much higher
than 13 per cent, what will be left for sharing among other states of
the Federation will be very small that many state governments will not
be able to pay salaries to their staff and run their administrations.
Copyright PUNCH.
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