Take a lead in relocation of Oil Companies to N/Delta, Activist tasks NNPC, others

A Niger Delta Activist, Comrade Sheriff Mulade has called on the Federal Government to also order the Nigerian National Petroleum Corporation, NNPC to move it's headquarters from Abuja to any of the oil producing states in the Niger Delta Region.

He equally called for the direct payment of 13% derivation fund to host communities of oil and gas producing kingdoms.

Commending the recent order given by the Federal Government to International Oil Companies (IOCs) to relocate their headquarters to the oil rich Niger Delta Region, the Activist said it was a welcome development, but implored Government to also direct the NNPC to move it's tower house in Abuja to the Niger Delta Region.

Acknowledging that subsidiaries of the NNPC are in the Niger Delta Region, Comrade Mulade who is also the Chairman of Kokodiagbene Community Gbaramatu Kingdom, Warri South West Local Government Area of Delta State, said that the NNPC should take the lead in the relocation of headquarters to the Niger Delta Region before the multinational oil companies.

He said that;"The recent order on relocation of headquarters to the Niger Delta Region given by the Federal Government to multinational oil companies is a welcome development, it is long overdue and I want to commend the Government for this bold steps, but at the same time, I want the Government to also order the Nigerian National Petroleum Corporation, NNPC to move it's headquarters to any of the oil producing states in the Niger Delta Region. Let NNPC be closer to the people as well, even though we have the subsidiaries of NNPC already in some oil producing states in the region. NNPC and the multinational oil companies should be made to relocate their headquarters to the Niger Delta Region".

Meanwhile, the Activist has called for the direct payment of 13% derivation fund to host communities of oil and gas producing kingdoms, saying such payment would end militancy in the Niger Delta Region.

In an open letter to the Acting President,  Prof Yemi Osinbajo, on behalf of Flow Stations /Well Head Host Communities of Nigeria,   Comrade Mulade said that;" We wish to refer to your visit of 16th January, 2017 to Gbaramatu Kingdom, one of the major oil producing kingdoms in Nigeria. During your fact finding visit, confidence building and citizen engagement through dialogue, you must have found out that there is no Federal or State government presence in the riverine oil and gas producing kingdom. This is the main cause of the protests and agitations, justified further by the suspension of the Nigerian  Maritime University at Okerenkoko, the only presence of Federal Government  in Gbaramatu Kingdom. Gbaramatu Kingdom is host to over eleven onshore and offshore Oil Fields and Flow Stations, which include; Abiteye, Otunana and Makaraba Oil Fields and Flow Stations operated by Chevron Nigeria Limited; Jones Creek, Egwa I &II and Odidi I & II Oil Fields and Flow Stations, operated by the SPDC."

"During your visit, you saw these Flow Stations and the adjoining communities; they are all Ijaw Communities of Gbaramatu Kingdom. It is clear that Gbaramatu Kingdom is really a major Oil and Gas Producing Kingdom and it is therefore entitled to accelerated development from the Federal and State Governments, as well as multinational oil and gas companies operating in the area. There are Seven Ijaw Kingdoms that are Oil and Gas Producing in Delta State; these are Gbaramatu, Ogulagha, Ogbe-Ijoh, Egbema, Iduwini and Kou Kingdoms. These Ijaw Kingdoms have a total production quantum of 27% of the Oil Production capacity of Delta State and are therefore, entitled to 27% of the 13% derivation fund due to Delta State from the Federation Account", he added.

Comrade Mulade who is the National President, FLOWHOSCON, said that;" "However, in Delta State, there is the Delta State Oil Producing Areas Development Commission (DESOPADEC) established by Laws of the Delta State Government. 50% of the 13% derivation fund is allocated to DESOPADEC to bring development to the Oil and Gas Producing Kingdoms of Delta State. From the year 2007 to 2014, the total monies from Federal Government in respect of the 13% derivation fund was One Trillion, Seventy-Four Billion, Fifteen Million and Five Hundred and Eighty-two Thousand Naira (N 1,074,015,582,000.00). Only 50% of this amount, (537,007,791,000) was due to DESOPADEC which is over One Hundred and thirty five billion (N 135,000,000,000.00) naira only".

He said further that;"It is therefore  clear that the Ijaw Oil and Gas Producing Kingdoms have been short-changed in the disbursement of the 13% derivation fund. Similar situation led to series of agitations by other Oil and Gas Producing Communities in Nigeria. The Oil and Gas Producing Communities therefore insist that the 13% derivation fund should be paid directly to them through appropriate structures for the building of hospitals, construction of roads, provision of clean drinking water, provision of electricity supply, access to job opportunities, safe water ways for transportation, as well as environment matters such as management and control of spills and pollutions".

"The Oil and Gas Producing Communities also affirm that paying the 13% derivation fund through the Governors of Oil and Gas Producing States is illegal and unconstitutional, as only the President has the prerogative and jurisdiction on such matters as provided for in the Exclusive Legislative list. For emphasis, no State Governor and State Assembly can legislate or act on any matter in the exclusive legislative list. 13% derivation fund as enshrined in section 162 (2) of the 1999 Constitution of the Federal Republic of Nigeria (as amended) confirms that 13% derivation fund is first-line charge on the Federation Account", he said further.

They resolved that the present system of paying the 13% derivation fund through the Governors of Oil and Gas Producing States should stop and the fund should be paid through appropriate Host Community structure of the Oil and Gas Producing Kingdoms in Nigeria, Payment of 13% derivation fund will end militancy, pipeline vandalism and illegal bunkering and it will give host communities a sense of belonging and guarantee security, peace, and so create the enabling environment for development and also make the paramount rulers responsible to government at all levels.

They also resolved that any act of vandalism and illegal bunkering will lead to the affected host kingdom forfeiting its monthly allocation from the 13% derivation fund thereby promoting peace and sustainable development in the region and payment of 13% Derivation Revenue through appropriate Host Community structure will enhance peace and sustainable development in oil and gas producing communities.  This will promote positive outcomes for the establishment of modular refineries as announced by the Federal Government that will in turn lead to national economic growth and development.

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