There is no gainsaying the fact that the South-West and the
monolithic north receive more than 13 percent derivation. This position can’t
be faulted because Lagos State hosts the headquarters of all the multinational
oil companies that operate in the Niger Delta. Recall that the multinational oil
companies were initially domiciled in the Niger Delta region but were ordered to
relocate to Lagos State by the then head of state, General Yakubu Gowon. With
the forceful movement of the headquarters of the multinational oil companies to
Lagos State, they also pay their taxes to the state. Again, all employments by
the multinational oil companies are also made in the state; giving the state
advantage over the Niger Delta that hosts the crude oil.
Thus, majority of the employees
in the multinational oil companies working onshore, offshore and the
headquarters are of the Yoruba extraction. Also, all the administrative
staffers of the oil multinational companies live in Lagos State and also pay
their taxes in the state.
In addition, the oil workers living in Lagos State pay huge
rents which enable landlords in the state to also pay their land use charges
and tenement rates to the government. Accordingly, the state generates about
N200 billion monthly from taxes and levies! It is noteworthy that without the
multinational oil headquarters in the state, there is no way the government can
generate such vast sum of money from taxes monthly. This is besides the monthly
federal allocation to the state. Will Lagos State have been able to generate
N200 billion monthly without the presence of the headquarters of the oil
multinational companies in the state? Does any state in the Niger Delta receive
N200 billion from the 13 percent derivation on a monthly basis? If the
headquarters of the oil multinationals are located in the Niger Delta region
and are also paying such humongous taxes the region won’t the region be
developed than what it is now?
Likewise, the monolithic north also receives more than 13
percent derivation; this is in addition to the federal allocation to the region.
This is so because the monolithic north has 19 states and 444 local government
areas. A refinery is also located in the north. With this scenario, the states
in the north receive more than 13 percent derivation which the states in the
Niger Delta region receive. Above all, the Federal Capital Territory (FCT) is
located in the north and more than 50 percent of the remaining 87 percent of
derivation is expended on the Federal Capital Territory. Equally, the north has
always had the largest numbers of political appointees in every government
owing to the fact that the region has 19 states and 444 local government areas.
The north has produced more ministers of petroleum and group managing directors
of the Nigerian National Petroleum Corporation (NNPC) than the entire southern
part of the country. The north shares almost the same staff strength with the South-West
in the multinational oil companies. Obviously, the armed forces are under the
control of the north as the region also has the largest numbers of personnel in
the armed forces. Similarly, the north also controls other para-military
agencies such as Nigerian Immigration Service, Nigeria Customs Service,
Nigerian Security and Civil Defence Corp and the entire civil service as it has
more employees than the entire south.
So, the money with which the Federal Capital Territory is
being developed, the armed forces, political appointees and the civil servants
are paid, is derived from the Niger Delta region. Therefore, Nigerians who say 13
percent derivation for the Niger Delta region is too much should encourage
their states produce something so they too can get 13 percent derivation like
the Niger Delta region.
The people of the Niger Delta have tolerated much oppressions
and abuses from other Nigerians. No other parts of the country would allow the headquarters
of the companies operating in their region to be located outside their regions.
Will the north allow the headquarters of their groundnuts and cotton industries
located outside the northern region? Will the southwest allow the headquarters
of their cocoa industries located outside the southwest region?
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