(SINL NIGERIA) The Senate committee on oil and gas has decried non compliance by oil producing states in the ongoing probe of utilization of 13 percent derivation funds.
Indeed, the committee has threatened to sanction any oil producing state that shun its invitation during next sitting.
The chairman of the committee, Senator Benson Agadaga gave this charge on Monday in Abuja.
Specifically, Senator Agadaga bemoaned non-compliance of key oil-producing states, including Akwa Ibom, Rivers, Bayelsa, Ondo, and Anambra, which failed to appear before the committee, saying only Lagos and Abia states honoured its invitation.
He explained that derivation funds allocated to oil-producing states, are intended to ensure that communities in these regions benefit fairly from the resources extracted from their lands.
“We called for meetings, but only two states showed up.
“This committee will not tolerate disregard for its mandate. Our goal is to ensure the proper utilization of the 13% derivation funds for the benefit of the communities. These resources should alleviate hostilities, improve relationships with oil companies, and maximize crude oil production for increased national revenue.
He continued: “The purpose of these funds is to ensure that oil-producing communities get their fair share of the national wealth”.
Agadaga, who represents Bayelsa East Senatorial District noted that this is the second time since the enactment of the Petroleum Industry Act (PIA) in 2021 that the Senate has formed a committee to oversee the utilization of these funds.
The Senator emphasised the significance of accountability in achieving Nigeria’s oil production targets, pointing out that the country is currently underperforming compared to the quotas set by OPEC.
He decried the absence of major stakeholders, stating, “These states need to account for how they have utilized these funds. They should explain why they are not cooperating and demonstrate how the funds are helping to improve oil production and generate revenue.”
“We must maximize production and revenue. Any state that continues to violate the committee’s mandate will face consequences” Agadaga warned.
