Group says DESOPADEC entitled to 50% of Delta’s 13% derivation fund

The Initiative for Social Rights Concerns and Advancement (ISRCA), also known as No Justice, No Peace, has said that the Delta State Oil Producing Areas Development Commission (DESOPADEC) is mandated to receive 50 percent of the 13 percent oil derivation fund allocated to the Delta State Government.

According to the group, the fund is meant for the rehabilitation and development of oil-producing areas within the state, as well as for the implementation of developmental projects determined by the commission.

The National Coordinator of ISRCA, Comrade (Amb.) Derrick Oritsematosan Agberen, stated this in a release on Monday following the approval of ₦8.4 billion for the payment of outstanding project debts owed to DESOPADEC contractors by Governor Sheriff Oborevwori.

Agberen expressed concern over what he described as the potential misappropriation of public funds by members of the DESOPADEC Board, noting that there is growing worry among indigenous communities and the general public about alleged excesses. He said many of the projects reportedly being funded are not visibly ongoing, and the public is unable to verify the benefits of previously established projects carried out during the last administration.

He questioned the purpose of the funds derived from the 13 percent allocation if they are not used for development projects in oil-producing areas. He said, considering the substantial amount Delta State receives annually and the recent ₦8.4 billion debt approved for DESOPADEC contractors, it was fair to ask whether the previous administration led by Senator Ifeanyi Okowa judiciously utilized the derivation funds for their intended purposes.

The ISRCA coordinator observed that this lack of transparency and accountability has been the reason many oil-producing communities are demanding the direct payment of the 13 percent oil derivation funds to local communities. He lamented that there have been no significant contributions since the creation of the commission, apart from a few exceptions, while larger portions of the funds remain unaccounted for due to purported contracts that only exist in media reports.

Agberen also noted that DESOPADEC has deviated from one of its major objectives, which is to provide skill acquisition and self-employment opportunities in oil-producing communities. According to him, the commission was designed to empower youths and reduce crime, insecurity, and social vices, but it has failed to live up to that expectation. He said many young people in oil host communities have resorted to drug abuse and prostitution due to unemployment, stressing that the commission’s resources could have been effectively used to engage youths productively and make them self-reliant.

He further described it as unfortunate that despite the huge revenue generated by the state, the government cannot boast of any viable industry or the revitalization of state-owned factories. He said a considerable number of indigenous Deltans have been deprived of opportunities to thrive because the state has failed to prioritize industrialization.

Agberen pointed out that any government that seeks sustainable growth must invest in industries capable of driving self-reliance. He explained that Delta State has a favourable natural environment suitable for productivity all year round and possesses one of the nation’s strongest oil and gas economies.

He, however, lamented that despite being an oil-producing state, Delta has failed to develop its areas in line with the enormous allocations it receives from the Federation Account Allocation Committee (FAAC). He argued that the level of development in the state is not commensurate with the huge revenue at its disposal.

Agberen stressed that as a wealthy oil-producing state, Delta must go beyond constructing roads and bridges or implementing poorly planned empowerment schemes that only cater to political loyalists. He said the state should instead focus on long-term industrial growth that would provide jobs and build the economy beyond a single administration.

He called on Governor Oborevwori to critically examine the issues facing oil-producing communities and ensure that they benefit from the resources derived from their land. According to him, this is especially important at a time when many young people are in dire need of meaningful employment opportunities.