TheCable

Governors of the south-south region have asked the national assembly to increase the allocation for oil-producing communities.

The petroleum industry bill (PIB) proposes 2.5 percent of the operating expenditure of oil firms to set up a trust fund for host communities.

However, the governors are insisting on 10 percent on the grounds that the 2.5 percent is not enough to improve the standard of living of their people.

Last week, TheCable had reported that Douye Diri, governor of Bayelsa state, said 2.5 percent is grossly inadequate and unacceptable.

Speaking in the same vein, Ifeanyi Okowa, chairman of the south-south governors’ forum, on Tuesday said: “We are of the view that while we welcome the Host Community Trust Fund, we do believe that 2.5 percent that is appropriated in that bill for the purpose of host community fund is inadequate.

“We have discussed with our people and collectively as leaders of the people in our various states and as leaders standing in on behalf of our people, we urge the national assembly to increase the provision in the host community fund from 2.5 percent to 10 percent. This is in the best interest of our communities and the nation.

“A peaceful environment in the various oil communities would enable us to have greater and seamless production, without any form of disruption going into the future.”

The governors also asked President Muhammadu Buhari to set up an escrow account to take care of the finances of the Niger Delta Development Commission (NDDC) pending when a board constituted.

“The governors have also urged President Muhammadu Buhari that in the absence of the board of the Niger Delta Development Commission (NDDC), funds for the commission, beyond the payment of salaries, should be put in an escrow account until he constitutes the board,’’ Okowa said.

“We do know that there is a forensic audit taking place and for that reason, the board has not been constituted.

“Our advice is that monies being sent to the NDDC should be put in an escrow account until a board is constituted and then proper processes are followed in the expenditure of the money for visible accounting,’’ he said.

“So, it means that the NDDC is being run in such a manner that it is not beneficial to our people because there is no stakeholder input in the running of the affairs of the NDDC.”

Present at the meeting were governors of the region — Nyesom Wike of Rivers, Godwin Obaseki of Edo, Douye Diri of Bayelsa, while Udom Emmanuel of Akwa-Ibom was represented by his deputy, Moses Ekpo.