Uduaghan said that the only way to address the myriad of challenges, injustices induced by oil explorations in the Niger Delta region was a review of the derivation from 13 per cent to 50 per cent.
The governor made the call while delivering a lecture entitled: ``Niger Delta: Beyond Resource Control - Burdens and Realities of Transformation” at Business Hallmark public policy forum in Asaba.
``I want to caution that no one should be deceived; the neglect of the Niger Delta region over the years is serious even if the people bear the brunt with a waning equanimity.
``The level of degradation with all the attendant consequences on our environment resulting from oil and gas exploration and production activities is even more serious,’’ he said.
According to him, the resources required for a total revamp of the Niger Delta region are enormous, far more than the present 13 per cent derivation can ever address.
“My position is that to address the myriad of challenges that we face and to compensate for the violence and despoliation visited on our environment, is a modest increase to 50 per cent derivation. ’’
He noted that it was for this reason that the struggle for justice would not die, adding that the federation needed to do what was right for the people of the region.
``We must go back to what served us well at the very beginning of this nation. There must be fiscal federalism. People must benefit from what they produce.
``I accept that some of these matters are constitutional but I also believe that they are issues of equity and fairness.
``Since we are in the process of amending the constitution, it is time our legislators looked at justice, equity and fairness in addressing these issues. ”
He said that the state was utilising oil revenue to build infrastructures.
He said that what the transformation agenda meant for the Niger Delta were in two folds, noting: ``one is to get the most you can from oil now as you transform to a post-oil era; because, like it, or not, that era must come.
``And the second is to develop other sources of revenue and diversify your economy to optimise available options or create them.
``To do the latter, you must revive agriculture and invest in agro-allied industries, enhance rural industrialisation, revive and deepen manufacturing, clean up the environment, develop human capital and upgrade infrastructure. ’’
It would be recalled that Governor Babangida have in recent times embarked on a campaign to re-introduce the on-shore / off-shore dichotomy in revenue allocation. He hinges his agitation on the need to be fair to the northern states despite the fact that his state and other northern states do not contribute one kobo to the national purse.
The onshore/ off-shore dichotomy was a disingenuous policy put forward by northern dominated military regimes to deprive Niger - Delta states revenue in favour of the northern states. At independence, Nigeria practiced fiscal federalism whereby the principle of derivation was 50 percent.
With the ascension of General Yakubu Gowon to political power after the second military coup and in order to take over the oil revenue from the Niger - Delta, the principle of derivation was abrogated and factors that will favour the northern part of the country, such as population, landmass were introduced into the allocation formula.
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