Buhari Reviews 13% Derivation To Oil Producing States

                           

President Muhammadu Buhari is presently reviewing the application of 13 per cent derivation allocation to the oil producing states, says Minister of state for Petroleum Resources, Dr.Ibe Kachikwu.

Kachikwu, who disclosed this in Abuja during an interview with journalists shortly after the president launched the sector’s policy road map, noted that the move is part of Federal Government’s plans to address the issues confronting the Niger Delta.

The Petroleum Sector Policy Road Map which was launched at the Presidential Villa is tagged: “The 7 Big Wins.”

Kachikwu said the Federal Government would be reaching out to the state governors in order to ensure that funds are channelled to the core areas where oil is produced.

“The president is also reviewing the proposal we gave him to look at how the 13 per cent derivation is applied. Right now it is a budgeting tool for state governments. We are going to be appealing to them to begin to put that into the core areas of the oil producing communities. And not just see it as a budgeting number,” he said.

According to him, all stakeholders including the president, the minister from the states and security chiefs would meet on Tuesday with about 50 leaders of the Niger Delta, in order to tackle the lingering crisis in the region.

He noted that the Federal Government would be launching a $10 billion infrastructure rebirth programmes in the region by installments.