Analysts and callers in a private radio station in Uyo, Akwa Ibom capital have loathed Senator Ita Enang, the Senior Special Assistant to the President (Senate) on National Assembly Matters (Senate) for denying that the All Progressives Party-led Federal Government has no plan to re-introduce the abolished onshore/offshore dichotomy in revenue allocation or derivation.
It was alleged that from the APC report on proposed restructuring, its recommendation intended to deprive the littoral states of Akwa Ibom, Bayelsa, Rivers, Delta and Lagos, among others of the derivation content of revenue allocation.
The analysts and callers who spoke Tuesday on Inspiration FM, Uyo condemned the statement credited to Enang, arguing that the Governor Nasir El-Rufai All Progressives Congress, APC, on the proposed restructuring of the country actually included the re-introduction of the dichotomy in the report.
“I wonder if Ita Enang had read the report. Personally, I have read the report and the on-shore/off-shore oil dichotomy is clearly stated and recommended by the report,” an analyst stated.
A caller who spoke in angry tone queried “How can Enang as an Akwa Ibom person deny the report? It is unfortunate that he spoke against a report which is in the public domain.”
Another caller opined “I think it is proper for all Akwa Ibom people bury their party’s differences and forge a common front in the interest of Akwa Ibom State. There is need for our people to speak the truth on the matter that affects all of us.”
However, Enang had on Monday in Abuja dismissed the idea that the federal government was planning to re-introduce the obnoxious policy before the National Working Committee of the party said to have recommended that the oil, gas and other minerals devolved to the state and that offshore belongs to the Federal Government.
Debunking the allegation, Senator Enang said there was no suggestion made for the abrogation of the Act in the recommendations and that there was no proposed bill drafted in the report.
“At no point has it been recommended for the onshore/offshore dichotomy to be re-introduced or enforced and the Federal Government is not doing so at this moment. May this be enough to allay the fears of the agitated or lay to rest the malicious issues raised by false alarmists,” he said.
The SSA stated that the campaign against Mr. President, the APC as a party and the committee on proposal for restructuring, describing as baseless that the said report was introducing onshore/offshore dichotomy to deprive the littoral states.
Enang said, “As preliminary, I want to state aforehand that neither President Muhammadu Buhari, the APC as a ruling party or the report on re-structuring has reintroduced covertly or overtly or in any manner whatsoever the abrogated on-shore-off-shore dichotomy and that the statutory allocation to Akwa Ibom and other littoral states will not decrease.
“I speak and say again that the intendment of the report is to allow the states control resources and devolve more powers to the states, and consequently increase allocation to the states, of which Akwa Ibom is among.
“For the avoidance of doubt, the Report on pages 18, 19 & 21, Volume 1 of Report of the APC Committee on True Federalism, Recommends as follows: –
“To promote the unity of the country and ensure that states are more financially empowered to deliver services to their residents, as well as ensure no one feels disadvantaged, the committee recommends that the federal government should expeditiously review derivation to reflect areas of consensus which are adoption of “state resources and pay FG”, upward review of the current formula in favour of states and adoption of similar derivation formula in favour of solid minerals and power generation.
“The committee in response to popular opinion recommends an upward review of the current derivation formula and adoption of the said formula in favour of solid minerals and hydro power. This recommendation will entail the amendment of section (162) (2) of Constitution
“Based on the response received and other findings, the Committee recommends an upward review of the current revenue sharing formula in favour the states. This is in view and taking cognizance of the proposed control of resources by the states and the devolution of powers from the Federal Government to the states.”
“The apprehension of the contenders is that the Recommendation says that the oil, gas, and other minerals devolved to the state and that off-shore belongs to the Federal Government
“I submit that by God’s special Providence, arising from the decision of the Supreme Court in the case of AG. Federation vs Abia State & 35 Ors (2002) 6 NWLR (part 764) 542-905 played central co-ordinating role in the abolition of the on-shore-off-shore dichotomy in the House of Representatives and my brother, Senator Udoma Udo Udoma now Honourable Minister of Budget and National Planning led in the Senate
“Upon the judgment in 2002, the Federal Government, at the lead of Emeritus Governors of (AKS), DSP Alamieyesigha (Bayelsa), James Ibori (Delta) and Peter Odili (Rivers) agreed with the Federal Government on behalf of the littoral States for a political solution, and this was worked out legislatively
“Reading the judgment of Kutigi, JSC (as he then was) in the case of AG, Federation v. AG, Abia State & Ors (Supra) wherein His Lordship states:
This court has no legislative powers and it cannot rewrite the laws. Only the legislature can lawfully and properly do that if it so wishes. I must observe again that even the plaintiff’s claim before the court is simply “A determination of the seaward boundary of a littoral State within the Federal Republic of Nigeria…
” We deemed this a window for legislation and accordingly the Allocation of Revenue (Abrogation of Dichotomy in the Application of the Principle of Derivation) Act 2004 was made which states;
“1. Abrogation of the Onshore and Offshore Dichotomy
(1) As from a commencement of this Act, the two hundred meter water depth Isobaths contiguous to a State of the Federation shall be deemed to be a part of that State for purposes of computing the revenue accruing to the Federation Account from the State pursuant to the provisions of the Constitution of the Federal Republic of Nigeria, 1999 or any other enactment.
” (2) Accordingly, for the purposes of the application of the principle of derivation, it shall be immaterial whether the revenue accruing to the Federation Account from a State is derived from natural resources located onshore or offshore.
“The above is provision of the existing law.”
