Give host communities their due

Bolaji Ogundele, AbujaThe Edo State branch of the Oil and Gas Host Communities of Nigeria (HOSCON) has urged President Muhammadu Buhari to replicate the fiscal freedom granted the judiciary and the legislature at the state level for the oil-producing communities.In a statement by the Chairman Deacon Friday Osazuwa and Secretary Pastor Paul Okpamen, the group said its demand would be realised through the release of the Derivation Fund directly to the communities, instead of paying through state governments.HOSCON said: Of a truth, 13 per cent Derivation Fund is the only first-line charge on the Federation Account.The Federal Government is second line charge, the state government is third line charge while the local government is fourth line charge. This is the position of law as confirmed by the Revenue Formula.Therefore, it is illegal and unconstitutional to pay the 13 per cent derivation fund, which is the first-line charge, through governorsthe third line charge on the Federation Account.This position of the Constitution made it very clear that 13 per cent derivation fund is provided constitutionally and exclusively for the oil/gas producing Communities primarily as compensation for loss of fishing rights and productive farmlands as a result of oil/gas exploration and production activities.It is only the President that has the prerogative and jurisdiction on all matter on the exclusive legislative list. No governor or state assemblies can legislate on matters on the exclusive list.Therefore, it is illegal and unconstitutional for Governors of the Southsouth states and their Assemblies to legislate on oil/gas13 per cent derivation fund which is first-line charge on the Federation Account.
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