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15% Derivation to Oil Communities Lawful - D/Gov
From Efem Nkanga in Uyo

Deputy Governor of Akwa Ibom State, Obong Chris Ekpenyong, has explained that the desision of the state government to reserve a part of its 13 per cent derivation for the oil producing communities of Onna, Esit Eket, Eket and Ibeno Local Government areas as lawful.

Ekpenyong made this clarification in reaction to the spate of criticism generated in the state by earlier reports on the issue.

He reiterated that oil communities, which suffer the environmental degradation and oil spillage arising from oil exploration activities on its coastline, should benefit from some special assistance from government, according to the law, to enable them cope with the challenges of oil exporation in their areas.

The deputy governor, however, stated that all parts of the state would ultimately benefit from the 13 per cent derivation expected from the Federal Government. He added that the benefits would come from the building of the 50 units housing estate and some other projects being undertaken by the state government, which would be enhanced by derivation.

Ekpenyong urged youths from oil producing communities to make the environment condusive for oil companies to operate in as corporate citizens.

The deputy governor also commended Exxon Mobil corporation for its people-oriented projects, especially its rice growing project in Ikot Ebidang in Onna Local Government area. He called on other oil companies operating in the area to borrow a leaf in area of corporate responsibility from Mobil.

He had recently in an interaction with stakeholders from the oil communities and management of Exxon Mobil disclosed that the state government has approved the payment of 15 per cent of its derivation from oil to the four oil producing communities in the state. He stated that the government's gesture was to help alleviate the suffering of the people of the communities as well as assist in the provision of of infrastructural facilities in the areas.


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