- Says 13% Derivation Fund Grossly Inadequate
From Adewale Sanyaolu, Houston, Texas
Bayelsa State Governor Mr Douye Diri has criticized the inclusion of non-oil-producing states as beneficiaries of oil proceeds from the Federation Account Allocation Committee (FAAC). He made this statement at the Annual Convention and Fund Raising of the Ijaw National Congress (INC) Americas held in Houston, Texas, with the theme: “Ijaw-Nation: Nurturing Partnership through Symbiotic Relationships Towards Homeland, Social, and Economic Development.”
Diri argued that the 13% derivation fund to oil-producing states is inadequate compared to the volume of work required in the region. He highlighted the significant financial burden of infrastructural development, education, healthcare, and skill acquisition in oil-producing states.
“Take for instance the road I am constructing from Nembe to Brass, it costs a huge lot of money, not to talk about education, health, skill acquisition among others. I have built science and technical colleges in virtually all Local Government in the State,” he said.
Diri expressed concern that non-oil-producing states receive oil and gas revenue on a monthly basis, while the states that own the resources receive a disproportionately smaller share. He called for a review of the revenue allocation formula to reflect the actual contributions of oil-producing states.
“The whole essence of FAAC is revenue sharing from oil and gas among the 36 States. But the revenue from gold is not seen in FAAC. These are some of the abnormalities that we will continue to face and talk about. But beyond talking about them, we must take appropriate actions. These actions are not alone for Government to take but by you in the Diaspora and NGOs,” he urged.
On the issue of environmental pollution, Diri blamed the International Oil Companies (IOCs) for the high level of environmental degradation in Bayelsa State. He also acknowledged the contribution of oil theft and other illegal activities to the problem.
“After all these then comes the military, who after seizing all of the so-called illegal oil now ignites fire on it, thereby compounding the environmental woes. But somebody told me that what we are seeing is a film trick because the same people have collected the oil and just put fire on nothing to deceive the world that the oil has been burnt. So, our environmental degradation continues to suffer on all fronts,” he said.
Diri specifically singled out Shell as a major culprit in the degradation of the Bayelsa environment. He announced that the state government would take legal action against Shell and other IOCs if they fail to address the environmental damage they have caused.
“Today Shell is divesting, and I call on the Minister of Petroleum (Oil) that we have a duty to ensure that Shell’s divestment must take care of ameliorating our environment, otherwise whoever is taking over the asset must be ready to include in their work plan the task of cleaning up our environment. Today, our flora and fauna are gone. Our beautiful environment is also gone,” he lamented.
Diri emphasized the need for collaboration between the government, the Ijaw diaspora, and NGOs to address the challenges facing the Ijaw nation. He expressed confidence that working together would lead to significant progress in homeland development, social advancement, and economic empowerment.

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