Presidency has denied that it plans to reintroduce the abrogated onshore – offshore dichotomy, a plan that may further reduce the revenue allocation due to the oil producing states.
Under the current arrangement, the abolition of the on-shore-off-shore dichotomy had led to increase in revenue due to the littoral states of Akwa lbom, Bayelsa, Rivers, Delta, Lagos among others enjoying the derivation content of Revenue allocation, with Akwa Ibom State enjoying a greater part of her revenue from off-shore oil.
A section of the Nasir el- Rufai led committee’s report that the oil, gas, and other minerals devolved to the state and that off-shore belongs to the Federal Government had led to some apprehension amongst oil producing communities and states.
But the Senior Special Assitant to the President on National Assembly Matters ( Senate) Ita Enang, while speaking with State House Correspondents at the Presidential Villa, Abuja, Monday, debunked the allegations of the planned abrogation, saying it was a campaign of calumny designed to smear the image of President Muhammadu Buhari, the All Progressive Congress and the Nasir el- Rufai led APC restructuring committee.
He declared that “neither President Buhari, the APC, nor the report on re-structuring has reintroduced covertly or overtly or in any manner whatsoever the abrogated on-shore-off-shore dichotomy and that the statutory allocation to Akwa Ibom and other littoral States will not decrease”
He reiterated that the report of the Nasir el- Rufai led committee is intended to allow the states control resources by devolving more powers to the states, and consequently increase allocation to the states, of which Akwa Ibom is among.
“For the avoidance of doubt, the Report on pages 18, 19 & 21, Volume 1 of Report of the APC Committee on True Federalism, Recommends as follows”
“To allow for the unity of the country and ensure that states are more financially empowered to deliver services to their residents, as well as ensure no one feels disadvantaged, the committee recommends that the federal government should expeditiously review derivation to reflect areas of consensus which are adoption of “state resources and pay FG”, upward review of the current formula in favour of states and adoption of similar derivation formula in favour of solid minerals and power generation”
“The committee in response to popular opinion recommends an upward review of the The current derivation formula and adoption of the said formula in favour of solid minerals and hydro power. This recommendation will entail the amendment of section of Constitution”
“Based on the response received and other findings, the Committee recommends an upward review of the current revenue sharing formula in favour the states. view and taking cognizance of the proposed control of resources by the states and the devolution of powers from the Federal Government to the states”
Backing his position with the decision of the Supreme Court on the issue, Ita Enang declared
“I submit that by Gods special Providence, arising from the decision of the Supreme Court in the f AG. Abia State & 35 ors (2002) 6 NWLR (part 764) 542-905. played central co-ordinating role in the abolition of the on-shore-off-shore dichotomy in the House of Representatives and my brother, Senato Udoma Udo Udoma now Honourable Minister of Budget and National Planning led in the Senate”
“Upon the judgment in 2002, the Federal Government, at the lead of Emeritus Governors o (AKS), Alamieyesigha (Bayelsa), James Ibori (Delta) and Peter Odili (Rivers) agreed with the Federal Government on behalf of the littoral States for a political solution, and this was worked out legislatively”
He also recalled judgment of Kutigi, JSC (as he then was) in the case of AG, Federation v. AG, Abia Reading the Judgment of Kutigi, JSC State & Ors (Supra), to back up his claims.
“This court has no legislative powers and it cannot rewrite the laws. Only the legislature can lawfully and properly do that if it so wishes. I must observe again that even the plaintiff’s claim before the court is simply “A determination of the seaward boundary of a littoral State within the Federal Republic of Nigeria..”
“…we deemed this window for legislation and accordingly the Allocation of Revenue (Abrogation of Dichotomy in the Application of the Principle of Derivation) Act 2004 which states that
“1. Abrogation of the Onshore and Offshore Dichotomy water depth Isobaths contiguous Act the two hundred meter the to a State of the Federation shall be deemed to be a part of that State for purposes of computing the revenue accruing to the Federation Account from the State pursuant to the provisions of the Constitution of the Federal Republic of Nigeria, or any other enactment”
“Principle of Derivation, shall be accordingly and for the purposes of the application of the law, it is immaterial whether the revenue accruing to the Federation Account from a State is derived from natural resources located onshore or offshore” he said.
Tony Ailemen, Abuja
