RMAFC Offers to Develop Transparent Framework for 13% Derivation Fund
By Patience Ikpeme
The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) has offered to engage relevant stakeholders to develop sustainable frameworks that guarantee transparency and fairness in the disbursement and utilization of the 13% derivation fund.
The Chairman of the RMAFC, Dr. Mohammed Bello Shehu, confirmed the Commission’s commitment to ensuring host communities in Nigeria’s oil and gas-producing areas receive fair and transparent benefits in line with constitutional provisions.
The confirmation came during a meeting with a delegation from the Host Communities of Nigeria Producing Oil and Gas (HOSCON), led by its Chairman, Prince Michael Emuh, at the Commission’s headquarters in Abuja.
Prince Emuh described the engagement as, “a new dawn for the long-neglected communities that lay the golden egg.” He lamented that despite providing the bulk of the country’s resources, their communities are often marginalized.
The Secretary to the Commission, Engr. Joseph Okechukwu Nwaeze, confirmed RMAFC’s commitment to fairness and promised HOSCON’s advocacy would not be in vain.
Dr. Shehu confirmed the complexity of the issue, noting that achieving transparency requires navigating multiple legal and constitutional areas. “The issue involves a delicate balance between constitutional provisions, judicial interpretations, and state-level management,” Dr. Shehu stated, adding that the complexity requires careful handling.
The Chairman also stressed the critical importance of cooperation from the communities to ensure the nation’s energy production continues without interruption.
He explained that, “Without the peace and cooperation of the host communities, the exploration and production of oil and gas in Nigeria would not be possible.” Dr. Shehu had earlier praised HOSCON for its peaceful and consultative approach toward addressing issues of resource allocation and environmental justice.
RMAFC Commissioners offered direct advice to HOSCON on how to secure a lasting framework. Prof. Aliyu Idris, Technical Assistant to the Chairman, advised HOSCON to submit a memorandum to the National Assembly proposing a constitutional management framework for the 13% derivation, noting that once such a framework is embedded in the Constitution, it becomes mandatory for all state governments to comply.
Hon. Mohammed Kabeer Usman, Federal Commissioner representing Gombe State, encouraged HOSCON to pursue its advocacy through dialogue and legal instruments. He noted that, “Achieving results requires engaging the National Assembly, the Judiciary, and State Governments, not confrontation.”
Similarly, Hon. (Amb.) Desmond Akawor, Federal Commissioner representing Rivers State, called for closer collaboration between host communities and key institutions to develop practical monitoring mechanisms for the 13% derivation fund.
In a practical appeal, Hon. Nkechi Otti, Federal Commissioner representing Abia State, charged the host communities to protect the projects executed by the state government from the fund to safeguard them from vandalisation.
Hon. Imoh Akpan Effiong, Federal Commissioner representing Akwa Ibom State, appreciated the HOSCON delegation for their constructive engagement and gave assurance that the Commission would carefully review their submissions to ensure a lasting framework for host community inclusion.
