Revealed :Why North and South are divided over derivation revenue sharing at national confab.

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Chief Olu Falae, elder statesman and delegate to national confab.
Chief Olu Falae, elder statesman and delegate to national confab.

More facts have emerged on why delegates of the North and South delegates at the National Conference holding at the National Judicial Institute in Abuja are unable to agree on what should be the percentage of total oil revenue sharing formula in the country.

Speaking on the issue to the press ,a delegate to the conference and former Secretary to the Government of the Federation ,Chief Olu Falae explained that oil producing States wanted 50 percent of oil revenue as revenue derivation even after the Committee had recommended 13 percent.

He disclosed that after three nights and three days of serious bargaining the Committee was able to make both the North and the South agree to 18 percent.

Falae disclosed that the issue however turned knotty when in the course of negotiation the northern delegates said 18 percent will not be sufficient to let their states government in the north operate and carry out reconstruction after the devastation caused by the Boko Haram insurgencies.

The elder statesman who is the leader of the South west delegation to the conference said the South was very magnanimous in adding five percent to the 13 per cent earlier suggested which was to be used to carry out conflict reconstruction all over the country with a provision that the reconstruction should start in the north east where the Boko Haram devastation is so pronounced.

He explained that the northern delegates declined to heed the other delegates suggestion but insisted that it should not only be the north east but north west and north central must be included.

Falae said delegates at the confab had always known that the derivation percentage sharing formula will be contentious when it comes up, hence the setting up of an all zone Committee made up of 16 delegates to discuss the issue.

He declared ,”We refused to agree to the wish of the northern delegates on this matter because the fund is not for the north but meant for a purpose ,which is to rebuild the battered economy and infrastructures after a man made conflict “

It could be recalled that Nigeria’s President Goodluck Jonathan recently announced the approval by the Federal Government of N30 billion rehabilitation fund for victims of Boko Haram insurgency across the nation.

President Jonathan also disclosed that a committee to disburse the Fund will have Lt Gen Theophillus Danjuma (rtd) as Chairman and Mr Fola Adeola as his deputy.

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