13% Derivation for Oil Producing State: Has Badagry Been Benefiting?; An Open Letter to Lagos State Govt., By UVOBPI | News Proof

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13% Derivation for Oil Producing State: Has Badagry Been Benefiting?; An Open Letter to Lagos State Govt., By UVOBPI

AN OPEN LETTER TO:

His Excellency, 
Mr. Babajide Sanwo-Olu, 
The Executive Governor, 
Lagos State, 
Alausa - Lagos, 
Nigeria. 
16 April 2021. 

Dear Governor, 

An Open Letter Part: Has Badagry been benefiting from the 13% derivation fund for oil producing states? Or is it just the wealthy few? Learning from the Niger Delta Region and Bayelsa State. An Urgent Appeal to the Lagos State Governor

Corruption has provided reasons for conflict but can both corruption and conflict be blamed on the denial for fairness and equitable shares? What can Lagos State learn from the Crude Oil Derivation Fund?

Violent conflicts, agitations and crimes increase considerably in this region as a result of denying the people a fair and equitable share of the country’s wealth, in particular the sourced crude oil resources in the region, despite the shift to a 13% derivation fund to alleviate agitations including other statutory allocations forecasted to the state for development reasons. The untold story that people may not know is that those bestowed to equally enable fair shares of the country’s wealth have not be able to achieve their duty of care to “pragmatically and strategically deploy Bayelsa state's share of the 13% derivation funds for meaningful development and transformation of the lives of the citizenry” (Gilbert et al, 2015, p.149). The causes of this ranges from corruption as causing a blockage for the development of that region in the Niger Delta and Bayelsa State.

In 2016, the Federal Government (FG) alleged that “four of the five oil wells discovered in Badagry legitimately belonged to Lagos State” and that "the state would start receiving 13 percent derivation fund”. Again, the FG also revealed that “Aje 3 oil well” mainly “falls beyond the 200-mile isobaths and therefore cannot be legitimately attributed to Lagos State” (see more on this story with Akinsanmi, 2016).

In 2016, a visit was made to inspect crude oil and gas production from Aje’s oil wells. The reason provided was for the purpose of disbursement of 13% derivation fund to the state according to the 1999 Constitution of the FG Republic of Nigeria (as Amended).

The technical committee at this inspection also advised that “for the purpose of derivation as spelt out under Section 162 (2) of the 1999 constitution (as amended) as well as the provision of the Allocation of Revenue (Abolition of Dichotomy in the Application of Derivation) Act 2004, Aje oil wells 1, 2, 4 and 5 falls within the 200m isobaths and therefore should be attributed to Lagos State.”

There is great need for transparency, accountability and inclusiveness in Lagos. The law is clearer in the matter of derivation and those bestowed with Lagos State’s affairs should take seriously the importance of a fair and equitable share of the state’s wealth, mainly as seen from crude oil resources. Similarly, those entrusted should, and must, understand that even though advantages of such resources emerge, environmental degradation is also a deadly consequence. This is the 21st Century, not the 19th or 18th Century, as such we humbly and respectfully appeal to the 15th Governor of Lagos state, His Excellency, Mr. Babajide Sanwo-Olu to listen to Badagry people’s calls for development (please also see An Open Letter Part 1: Assessing Crude Oil Exploration and the Environmental Impacts on Sustainable Economic Development in Badagry. An Appeal to Lagos State Governor, Minister of Environment, Federal Ministry of Environment & Minister of Petroleum Resources).

Explaining UVOBPI-TEAMCO’s CSO work connecting local communities and what our advocacy work does.

UVOBPI-TEAMCO Monitoring-Observation-Advocacy Mission’s (UTMOAM) eye is on Lagos and we humbly advocate for openness and transparency in Lagos’ affairs and relations with Badagry’s communities at large. UTMOAM also solicits an inclusive society and asks for accountability and our UTMOAM will lobby for transparency and openness to ensure fairness and an equitable share of the state’s wealth derivation to reach Badagry and equally other parts of Lagos. Our Civil Society Organisation (CSO) works with the United Nations Convention Against Corruption (UNCAC) and comply with Chapter II and III and applicable National legislation in Nigeria for all our advocacy work.

For this reason, UTMOAM seeks direct engagement in Badagry’s affairs and we strongly and humbly further appeal for UTMOAM to be carried along in matters relating to Lagos State and the development in Badagry. What we ask your administration for is transparency, accountability, openness, inclusiveness, and a fairness and equitable share of the state’s wealth to all our communities in Badagry and all other communities who have been left out throughout Lagos state. This is an open appeal sir, and we humbly wait for your reply within the next two weeks at UTMOAM. Below are references of our findings attached.  

UVOBPI-TEAMCO IN THE FIGHT AGAINST CORRUPTION IN NIGERIA

Monitoring-Observation-Advocacy

UNITED VOICE OF BADAGRY PEOPLE INITIATIVE (UVOBPI)


EMAIL US AT: [email protected]



References:
Akinsanmi, G. (2016, August 17). FG approves 4 oil wells, 13% derivation for Lagos. Retrieved April 14, 2021, from https://www.thisdaylive.com/index.php/2016/08/17/fg-approves-4-oil-wells-13-derivation-for-lagos/  

Gilbert, L. D., PhD, Gwediananie, A. K., & Anthony, R. (2015). Corruption and the Utilization of 13% Oil Derivation Fund in Bayelsa State of Nigeria. International Journal of African and Asian Studies, 13, 149-153. Retrieved April 14, 2021, from https://core.ac.uk/download/pdf/234689965.pdf  


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