Oil Money: Jonathan warns governors over sharing formula

The Presidency on Wednesday said it viewed with great grave concern what it described as “the current attempt by some politicians to heat up the polity by seeking to reopen fresh conflict and controversy over the onshore/offshore abrogation law which was enacted by the National Assembly in 2004”.

In a release signed by Reuben Abati, spokesperson to President Jonathan, the Presidency described discussions over the law as disruptive and out rightly mischievous. 
” Those who are issuing threats and counter-threats over every issue, are obviously not just re-inventing a controversy, they seem determined to fuel acrimony and needless conflict, said the Presidency.

Governors, politicians and columnists, mostly of Northern origin have been calling for the revision of the law over the excuse that it put them at a disadvantage financially.

Governor Rabiu Musa Kwankwaso of Kano State in North West Nigeria recently called for the revision of the onshore/shore law. He argued that the statutorily stipulated 13 per cent derivation paid to oil producing states from the federation account should only be based on oil found on their shores.

The Governor told an Abuja based newspaper that the Governors of the Northern region will push for a review of the policy to ensure that littoral states will receive derivation funds only on crude oil found within their land borders during the scheduled review of the constitution.

He added that billions of naira that could have been shared among other states were being paid to the few states of Niger Delta monthly from the federation account.
However politicians and Governors from the Niger Delta States have also been speaking in support of the law. Governor Rotimi Amaechi of Rivers State recently said the states are entitled to the payments from oil produced from the offshore of their states because they suffered the environmental consequences of the exercise.

“The Presidency strongly advises such politicians to desist from playing up sectional and ethnic sentiments, over a matter that was addressed eight years ago to the benefit of all parties concerned.
” At a time when the government is working hard to resolve security challenges in parts of the country, the political elite across board is expected to cooperate with the Federal and state governments to promote the cause of peace, stability and national transformation.


”Government is working tirelessly to ensure the full enjoyment of fundamental rights by all Nigerians, in an atmosphere that is free of rancor and tension. No individual, political interest or group should attempt to violate this, either overtly or covertly.
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The Federal Government wants to reassure all Nigerians that while it respects every individual’s right to the freedom of expression, it is equally duty bound to forestall any attempt to undermine the peace and security of the country, under whatever guise, ” the Presidency concluded in the statement.