News
Confab: S’South Opts For 22.5%-50% Derivation
L-R: Chairman, World Pension Summit for Africa, Mrs Grace Usoro; Co-chairman, World Pension Summit, Mr Harry Smorenberg; Acting Director-General of Pencom, Ms Chinelo Anohu-Amazu; President Goodluck Jonathan; Minister of Finance, Dr Ngozi Okonjo-Iweala; Co-chairman, World Pension Summit, Mr Eric Eggink and Chairman, Senate Committee on Pencom, Sen. Aloysius Etuk, at the World Pension Summit in Abuja last Monday.
At last, the National Conference, Monday and yesterday debated the thorny issues of resource control, derivation principle and devolution of powers, as it considered the report of its Committee of Devolution of Power, with South-South delegates opting for between 22.5 per cent and 50 per cent derivation.
As fervent debates flourished during the plenary session of the conference following conferees commencement of debate on the report of the Committee on Devolution of Power, expectations were high, and tension beclouded the plenary but the sagacity of the Conference Chairman, Justice Idris Kutugi, who presided, doused the tension.
The committee’s slim-volume submission, loaded with serious issues, focused principally on devolving power from the centre to the federating units; and the issue of resource control.
The report was however applauded by the delegates shortly after it was presented by the co-chairmen, the former governor of Akwa Ibom State, Obong Victor Attah, and the former Inspector General of Police, Alhaji Ibrahim Coomassie.
Critically examined in the report, whose recommendations would be subjected to vote by the conference later, were the issues of resource control, derivation principle, revenue sharing formula, and the development and exploitation of mineral resources nationwide.
The report also examined 68 items cited in the Second Schedule, Part One of the 1999 Constitution, which deals with the Exclusive Legislative List; and 30 items contained in Part Two of the Fourth Schedule bordering on the Concurrent Legislative List.
While most delegates from the South, particularly, the South-South and South-East said derivation should be increased from the present 13 per cent to between 22.5 per cent and 50 per cent, others suggested that it should be reduced further from 13 per cent.
Resource control, perhaps, was the most debated aspect of the report.
Each delegate, depending on where he or she comes from, wanted considerable level of control of resources in view of the adoption of true federalism by the conference while others said the issue did not arise as far as they were concerned.
Those who canvassed the view that states should control their resources said they did so in the spirit of devolution of power which allows the states to only pay taxes or make appropriate financial contributions to the Federal Government.
Others argued that mineral resources in Nigeria are owned in law by the Federal Government as contained in Section 44(3) of the 1999 Constitution, as amended.
Section 44(3) states that: “Notwithstanding the foregoing provisions of this section, the entire property in and control of all minerals, mineral oil and natural gas in, under or upon any land in Nigeria or in, under or upon the territorial waters and the Exclusive Economic Zone of Nigeria shall vest in the Government of the Federation and shall be managed in such manner as may be prescribed by the National Assembly.”
In its report, which is still subject to ratification by the conference, the committee said that after heated discussion on resource control, it unanimously agreed that the issue of derivation should rather be discussed instead of resource control.
It said its decision was informed by the emotive nature of the issue, which in the committee’s view was capable of destabilising the country.
On derivation, the committee said some delegates were of the view that derivation should be increased either in a quantum or gradual manner; while others were opposed to any form of increase.
Instead, some members had proposed the reintroduction of the off-shore/on-shore oil dichotomy in derivation payments; at the same time, while others kicked against it.
The committee said that even the abolition of intervention measures such as the Ministry of Niger Delta Affairs, Niger Delta Development Commission and the Amnesty Programme were robustly discussed.
After long debates which spanned four days, the report indicated that a consensus was reached on the issue to the effect that the status quo be maintained in order to avoid upsetting the existing peace and equilibrium in the polity, which it described as a product of years of political engineering and craftsmanship.
On fiscal federalism which basically deals with how revenues are generated and distributed among the federating units in the federation, the committee concluded that the powers conferred on the Federal Government to keep custody of and determine the terms and manner of fund allocation from the Federation Account negate the principles of fiscal federalism.
The committee spotted what it called imbalance in favour of the Federal Government in the sharing formula, and maintained that the imbalance has adversely affected the performance of the federating units, and therefore asked for a review.
It recommended that the powers of the Federal Government under Section 162(3) of the 1999 Constitution, as amended, to prescribe the terms and manner of sharing national revenue should be exercised through the Revenue Mobilization, Allocation and Fiscal Commission (RMAFC).
The committee argued that RMAFC should at the same time consult the federal and state governments before presenting a draft bill on the matter to the National Assembly for enactment into law.
On vertical revenue sharing, which deals with how revenue is disbursed to federating units, the committee emphasised the need for equilibrium between the central government and the federating units, comprising states and local governments.
It said that it conducted examination of specific development challenges of states and local governments, and concluded that to a great extent, rapid economic and social development could be achieved in the country if the percentage of revenues allocated to states and local governments were reviewed upwards.
It recommended that the sharing formula for funds accruing to the Federation Account among the three tiers of government should be: Federal Government 42.5 per cent instead of the present 52.68 per cent; state governments 35 per cent instead of the current 26.72 per cent; and the local governments 22.5 per cent to replace the current 20.60 per cent.
The committee further recommended that the percentage given to population and equity of states in the existing sharing formula be reduced while that assigned to social development factor should be increased to a higher percentage to ensure accelerated development of all parts of the country.
The proposed sharing formula by the committee is based on: diminished emphasis on principles of equality of states and population; increased emphasis on social development factor; and internally generated revenue.
On mines and minerals including oil fields, oil mining, geological surveys and natural gas, the committee recommended that they should be retained on the Exclusive Legislative List as specified in the 1999 Constitution but should be amended to read thus: “The governments of states where the mining activities take place shall be involved in matters relating thereto; (and that) the government of the federation shall create a special fund to develop mines and minerals in states where such resources are undeveloped.”
According to the committee, the overriding need to bring all other mineral resources of the country, hitherto undeveloped, into the mainstream development by activating National Strategic Plan for exploitation of minerals to boost their contribution to Gross Domestic Product (GDP), were considered in making this recommendation.
Still on mineral development, the committee recommended a constitutional provision for the establishment of a Special Fund for the development of mineral resources in the country.
It further proposed that 4.5 per cent of the total revenue accruing to the federation should be devoted to this special fund when established.
In addition, the committee wants the Special Fund to be in the form of a Venture Capital Fund, advising that a competent body should be established to administer the fund according to the guidelines that shall be specified by the National Assembly.
Before the presentation of the committee’s report to plenary, a delegate, Professor Awalu Yadudu, addressed the conference to “state his own part of the story” on the raging controversy of “consensus group and the existence of position paper”.
Yadudu debunked insinuations that he was primed to “scatter” the conference as claimed by another delegate but rather insisted that his decision to opt out of the consensus committee was informed by the fact that most of the decisions adopted in the position paper presented to plenary were not part of the recommendations of any committee.
Earlier, an elder statesman, Chief Edwin Clark, had addressed the conference, and harped on the need to put the interest of the country above sectional and personal interest.
Clark expressed regret that the consensus committee constituted to resolve contentious issues that may arise in the course of adoption of the recommendations of committees was “scattered” midway.
The Ijaw leader said he was sad that issues that could scatter or dent the credibility of the conference were being raised close to the end of the parley.
He said everyone must understand that Nigeria “is made up of equal citizens. Nobody is superior to the other. We came to this conference in order to have consensus on contentious issues.”
He appealed to delegates to see the National Conference as an ample opportunity to contribute their quota to the task of reforming Nigeria.
Justus Awaji, Abuja
Rivers State Governor, Sir Siminalayi Fubara, has charged newly sworn-in chairman and members of the State House of Assembly Service Commission to achieve greater productivity, promote highest standard and insist on best practices in the discharge of Legislative services.
Governor Fubara also urged them to ensure that parliamentary staff are put through disciplinary conducts in the discharge of their duties in the service.
Governor Fubara gave the charge shortly after the chairman and members of the Rivers State House of Assembly (RSHA) Service Commission were sworn-in at the Executive Chamber of Government House in Port Harcourt, last Friday.
The Governor also sworn-in the chairman and members of the Rivers State Local Government Service Commission.
Hon Tamunosisi Gogo-Jaja, is the chairman of RSHA, with Dr Kennedy Ebeku, Hon. Soberekon Clark, Hon. Jones Ogbonda, and Hon Kingston Sylvanus as members.
For the Rivers State Local Government Service Commission, Hon GoodLife Ben will serve as the chairman, with Chief Emmanuel G. Jaja, Ms. Betty Warmate, Barrister Jerome Chimenem, Hon Prince O. Ohochukwu, Barrister Philip Okparaji, and Christian Amadi as members.
Governor Fubara explained that the constitution and swearing-in of the respective commissions were delayed with the hope that all former members of the political block will come back together but quickly added that such expectation is dashed now as governance has to move on.
He said: “As it stands now, our position is very clear. The ship that we are onboard is clear, and the activities of governance have to continue.
“So, this swearing-in is to give these two units of government – particularly, the House of Assembly Service Commission, a formal commission so that you can start carrying out the activities of promotion, discipline and every other thing that has to do with the legislative staff activity.”
Governor Fubara emphasised: “This assignment is not business as usual. You have to take full charge, and you have to ensure that there is discipline in the service.”
Speaking on the Local Government Service Commission, Governor Fubara said an acting Chairman was previously appointed to hold brief while the situation was being studied but quickly added that as it stands now, a full fledged commission has to be constituted to steer affairs.
Governor Fubara stated that the various Local Government Councils have been mandated to commence payment of the N85,000.00 Minimum Wage to their workers.
However, Governor Fubara said that mandate had met with series of complaints about ghost workers or inflated payroll staff list, which required proper scrutiny in order to ensure that only genuine workers benefit.
He said, “You must ensure that you support the Local Government Chairmen to get rid of those fake names in the payroll, so that when they implement the N85,000.00 Minimum Wage, it will not be too much burden on them.
“I am not saying you should go and dismiss people who are genuinely employed. Hear me very well: there must be proper scrutiny to be sure that whoever is there must be a genuine civil servant employed by the commission, and must have met all the conditions.”
Governor Fubara also directed the commission to address the issue of staff stagnation on a particular grade level, which is an ugly practice, and make sure those due promotion truly benefit from statutory progression in the service.
He said, “The second side is, you have the issue of promotion, you must also ensure that they are adequately promoted so that they can start enjoying like their counterparts in the mainstream.
“There is too much dragging of their promotion, for somebody to be on Grade Level 4 for over 30 years is not good. It is not good news.”
Governor Fubara maintained: “I believe strongly that you will not allow yourselves to be corrupted like those stories that we used to hear. Make sure that there is acceptable level of discipline and standard in the Local Government Service Commission.
“I also believe strongly that you are already prepared for this assignment, and since you are prepared, I will charge you to go do what you know how to do best. Be assured that the government will give you all the necessary support.”
Governor Fubara noted that the task before them could seem Herculean but they should be assured of support from his administration to drive the assignment given to them to reckonable success.
Rivers State Governor, Sir Siminalayi Fubara, has said that the open dumping of wastes has to be replaced with a more innovative and efficient disposal method so that wastes can be taken off the streets and turned into income-yielding ventures.
Governor Fubara made the assertion while giving charge to the newly constituted Board of Directors of the Rivers State Waste Management Agency (RIWAMA) and its Managing Director at Government House in Port Harcourt, last Friday.
The Board members included Engr. Edward Namiesimagh as the chairman, while Hon. Bishop Best, Dr. Ipalibo Sogules, Richard Mazi, and Civian Y. Nwibari are members, with Hon. Orukwem Amadi-Oparaeli as the Managing Director.
Governor Fubara said waste disposal and management have remained a major global concern, adding that over the years, successive administrations in the State had struggled to take wastes off the streets but ended up taking them to other dumpsites where they constitute nuisance and environmental hazards.
He said, “Today, I am here putting a team together to look at these challenges differently. Let it not be the regular pattern whereby at the end of the month, you come to collect money from me for payments.
“Don’t indulge in appointing your friends as sweepers, evaluators of debris, then you start building hotels, or buying big cars. Let us go beyond that and tap into the potentials of waste management.
“It is an area in this world that there is so much money in. It is an area that creates employment, and generates huge revenue. It is not just depending on what I will give to you. Consider what change you’ll bring to the work, that’s what I want to see in Rivers State.”
Governor Fubara told them that they were carefully selected because of the experiences they had garnered in their previous public assignments, and urged them to replicate their successes on a bigger scale with the new appointment.
The Governor advised them to work assiduously to bring back the beauty of Port Harcourt with effective waste disposal drive, and ensure the city is clean and green to reflect its old Garden City status.
Governor Fubara emphasised: “If not for our effort, today, some people could have even changed it to become Garbage City. But God forbid, it is not going to be in our own time.
“I want you to understand that I feel very unhappy with the sight I see. When you are driving into Port Harcourt, one of the first things that will welcome you is the waste dump that you see along the Obiri-Ikwerre-Airport Road. I don’t feel happy about it.
“Your first task should be to relocate it. That particular place needs to be completely closed because it is the entrance to the city. You need to get a new place where we can relocate our wastes.”
Governor Fubara urged them to be more responsible as they discharge their assignment, saying that it is more important to see results than being merely preoccupied with the aura of office.
The Governor warned that he will not hesitate to relieve anyone found wanting, and return the agency back to the era of a sole administrator running the affairs of the agency.
He noted, “This team cuts across all the Senatorial Districts, so that whatever you are going to do there, you ensure it spreads. While you are also carrying out this job, let it be known to the world that the interest of everybody in the State is accommodated.
“It shouldn’t be one-sided. Make sure that all our supporters who have the capacity and competence to do little jobs in the refuse area are also accommodated. I am serious. I have no doubt that you are going to impress us. So, I charge you to do all you can to make sure that the face of Port Harcourt changes when it comes to the issue of refuse.”
Governor Fubara told them to be good ambassadors of his administration as they interface with members of the public while also changing the face of refuse management in the State.
In his acceptance speech, Chairman of Rivers State Waste Management Agency (RIWAMA), Engr. Edward Namiesimagh, expressed appreciation to the Governor, on behalf of members of the Board, for finding them worthy to handle such difficult but surmountable task of keeping Port Harcourt clean.
He said, “When I see the calibre of people you assembled, all of us are happy, and I assure that with our period of experience in our fields and politics and interaction with people and the zeal that comes with this job, we assure you that we will do our best to make sure that the policy of restoring Port Harcourt to its lost glory is achieved with your support.”
Rivers State Governor, Sir Siminalayi Fubara, on Saturday, graced the solemnization of Sacrament of Matrimony between Engr Victor Kii, and his heartthrob, Engr Mercy Mankwe.
Engr Kii is the Rivers State Commissioner for Agriculture.
The wedding ceremony was held at Our Lady of the Holy Rosary Chaplaincy, Catholic Institute of West Africa (CIWA), along the Port Harcourt-Aba Expressway, Rumuibekwe in Obio/Akpor Local Government Area.
In his Homily, the Chief Celebrant, Bishop of the Catholic Diocese of Sokoto, Most Rev Matthew Hassan Kukah, said marriage is an enduring union, ordained by God for two persons – man and woman – who have decided in love to live their lives together.
Bishop Kukah stated that people in such Christian marriage should know that they are in an indissoluble union, bounded by faith, and advised them to gladly make personal sacrifices in tolerance and care for each other so that they can have a healthy, successful and rewarding life together.
In his vote of thanks, co-celebrant, Very Rev Monsignor Pius Kii, showered commendations on the Governor for his fatherly support to the family, and the numerous landmark achievements in various sectors across the State.
The clergy and the church took the opportunity to pray for the success and good health of Governor Fubara and his administration, and urged God to protect, guide and defend him at all times.
The church also presented 50th birthday cake and gifts to the Governor, and also sang birthday songs to accentuate the celebration.
Highlights of the event were the signing of the marriage register by the new couple, Victor and Mercy, and the cutting of the 50th Birthday cake by the Governor.
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