Confab adjourns abruptly

For two days running yesterday, the National Conference was forced to adjourn abruptly following heated debate over derivation formula, mineral resources development and reconstruction funds for the North.The conference was suspended on Monday after a row broke out over the retention of 13% derivation funds for oil states by the devolution of power committee. Three leaders, […]

For two days running yesterday, the National Conference was forced to adjourn abruptly following heated debate over derivation formula, mineral resources development and reconstruction funds for the North.
The conference was suspended on Monday after a row broke out over the retention of 13% derivation funds for oil states by the devolution of power committee.
 Three leaders, each from the six-geopolitical zones, were then selected with a view to finding an amicable solution to the contentious issues.
The leaders’ meeting from Tuesday continued up to mid afternoon yesterday after which the representative of the group Professor Ibrahim Gambari presented its recommendation to the plenary.
Gambari announced that the zonal leaders have agreed that derivation  fund should be increased from 13 to 18%.

It also proposed five percent for mineral resources development and another five percent for reconstruction and rehabilitation of the North ravaged by insurgency.
But as soon as Gambari mentioned that there was five percent Fund for Stabilisation, Rehabilitation and Reconstruction of the North, Southern delegates chorused their opposition to the proposal.
Sensing that rowdiness had enveloped the plenary, conference deputy chairman Professor Bolaji Akinyemi quickly called for adjournment, saying discussions would continue today.
The zonal leaders started their conciliatory talks over the issue when delegates from the South-South and their allies from South West and South East rejected the 13 percent derivation status quo recommended by the devolution of power committee.
Another issue that served as a game changer was a document distributed at the plenary yesterday afternoon before the zonal leaders’ decision.
The document, sourced from the Federation Account Allocation Committee (FAAC) released by the Office of the Accountant General of the Federation, provided detailed revenue allocation to the six geopolitical zones and the 36 states for April and May, 2014.
An analysis of the document on zonal basis shows that South-South zone has the highest allocation, while South East has the least (see chart above for details).
State-by-state analysis shows Akwa Ibom raking in the highest allocation, having received N45bn with Osun getting the least – N5.83bn for the two months under review.
Not all states in the South-South are better off. Cross River and Edo states got N8bn and N9.6bn for the two months respectively, which is about half of Akwa Ibom’s.  
Though South-South delegates are clamouring for more allocations under resource control, their Northern counterparts insist there should be resource integrity, meaning judicious use of the oil money.
Gambari explained efforts made by his group to reach the controversial resolution thus: “One group began with the position that was embodied in the recommendations of the committee on devolution of power all the way from 13 percent, 15 percent, 17 percent to not less than 18 percent. Another position shifted from very high figure, 100 percent, 50 percent, 21.5 percent, to 20 percent and finally to not less than 18 percent to be reviewed after every 10 years.”
But he said that his group “adopted a position and recommends to the plenary not less than 18 percent as the derivation formula but it didn’t end there. As a package, we have proposed two recommendations; one, for five percent revenue allocation for solid mineral development.
“The second and perhaps the most urgent is that we have recommended for a new fund to be established which we call Fund for Stabilisation, Rehabilitation and Reconstruction.”
He said “these recommendations, if endorsed, will be reflected in the Revenue Allocation Act,” adding that “the peculiarity is now where the victims of what is happening is not a North East problem but a Nigerian problem manifesting itself most traumatically in the North East.”
The plenary is expected to resume deliberation on the matter today, with likelihood of voting, where 70 percent majority would carry the day.
Meanwhile, South West delegates yesterday disowned the Gambari group report, saying the special fund for the North is aimed at fuelling insurgency in the region.
In a statement by Kunle Olajide, the South West delegates said “Gambari’s projection amount to depletion of the federation account through nebulous funds to promote insurgency in the country.
“It also aimed at legalising the impoverishment of non-oil bearing states in South-West, South-East and South-South. As these states, neither benefit from derivation nor the so-called intervention fund,”  the statement said.