By Kolawole Ojebisi
The Minister of State For Petroleum, Heineken Lokpobiri, has explained how the funds earmarked to oil-producing states known as “derivation fund” can get a raise.
Lokpobiri said it’s only when leaders in the Niger Delta collaborate with the federal government to ensure increased oil production in the region that such action will be given a consideration.
The Minister spoke on Friday during the special general assembly of the Pan Niger Delta Forum (PANDEF) in Port Harcourt, Rivers state.
“It’s important that I use this opportunity to seek for support from PANDEF, from leaders in Niger Delta, to work with us so that we can, on a sustainable basis, increase production, so that we can bring that deposits from the ground to the market, and so your states will get more money by way of derivation,” he said.
Lokpobiri said the federal government would also rake in more funds and consequently, communities in the Niger Delta region can legitimately demand that “from this money you’ve gotten from our area, please come and do this for us”.
“And the reason why some very hard decisions were taken by Mr. President, which has to do with the issue of subsidy, is because we realise that this subsidy doesn’t benefit those of us from south-south,” the minister said.
Speaking on the benefits of subsidy removal, Lokpobiri said loopholes enabling financial leakages have been blocked and trillions of naira have accrued to the national coffers.
The Minister said the money saved can be used for infrastructural development and other projects.
Lokpobiri said “in the name of subsidy,” trillions of naira have been spent in the country.
“That money that was used for subsidy is now available and shared to three tiers of government for more development of our area,” he said.
“So we are likely going to get more deposits but no matter the volume of deposits we have, it would not translate to any tangible benefit to our people, unless we work together under a very peaceful environment, and extract this crude oil and gas to the market.
“That is when we will get value from what God has given to us. Otherwise, I am over 50 years old and people have been lamenting till today; the time for lamentation is gone.”
Otherwise, the minister said the region would be completely overwhelmed by the issue of energy transition.
Lokpobiri reiterated that it is in the region’s interest “for us to collaborate with others now so that more companies can come and extract more volumes for the benefit of our own people”.
