Gov Diri demands 30% derivation fund for oil-producing states

Bayelsa Governor, Senator Douye Diri, has called on the Federal Government to increase the thirteen (13) per cent derivation fund for crude oil producing states to thirty (30) per cent, saying that the former is deprivation than blessing to the people of the Niger Delta region.

Senator Diri stated this during the commissioning of Onuebum-Otuoke Road in Ogbia Local Government Area and Legislator’s Quarters (New Yenagoa City G.R.A) in Yenagoa Local Government Area as part of activities to mark his 5th anniversary in office.

Speaking during the commissioning of the road which links the entire state to the Federal University, Otuoke, he further explained that the excuse of the Federal Government has always been that the terrain is too difficult to develop.

He said; “Over the years, the only excuse we have for development is the difficulty of the terrain. They say the terrain is too difficult to develop but in the same terrain, God put oil and gas under the soil. God knew the terrain would be too difficult to develop, so he put abundant resources under our soil.

“But the Federal Government decided to take the resources while claiming that the land belongs to us but the resources belong to the Federal Government. Under that injustice, they are giving us 13 per cent of 100 per cent.

“So I say that 13 per cent is 85 per cent deprivation to us. So we are demanding that the Federal Government should extend the 60 or 30 per cent sharing formular being proposed in the National Assembly on Value Added Tax (VAT).”

Inaugurating the Onuebum-Otuoke road project, Governor Caleb Mutwang of Plateau State said he was impressed by the pace of development in Bayelsa and also backed calls for increase of the derivation funds to oil-producing States and practice of fiscal federalism.

The Plateau Governor who said he started coming to Bayelsa State in 1993 when he got married to his wife who hails from the State stated that the project would open up the area for further development while announcing a donation of N15 million to the Onuebum and Otuoke communities as well as students at the Federal University, Otuoke.

Earlier, the Bayelsa State Commissioner for Works and Infrastructure, Moses Teibowei explained that the Onuebum-Otuoke road which is a single carriageway measuring approximately 6.5km with six culverts, a sand-filling height of approximately 2 metres and a width of 7.3 metres was awarded in February 2023 after it was damaged during the 2022 floods, and constructed in fulfillment of the governor’s campaign promise to improve connectivity across communities.

The Otuoke and Onuebum communities in an address presented by Chief Elliot Osomu, community while expressing gratitude to the Governor Diri administration for constructing the road, requested more projects and provision of electricity to the area.

President of the Students Union Government, Federal University, Otuoke, Silas Nimibofa, who commended the governor for the road, which he said had reduced crime, provided an alternative route, and helped to reduce transportation costs also requested for buses to support movement of students.