13% DERIVATION: Activist Drags Okowa, Uduaghan, Others to High Court Over Underfunding of DESOPADEC

Former Delta State Governors Okowa (L), Uduaghan (R) and Niger Delta Activist Chief Sheriff Mulade (M)
30 Jun, 2023

A Niger Delta environmental activist, Chief Sheriff Mulade, has accused the Delta State Government of grossly underfunding the Delta State Oil Producing Areas Development Commission (DESOPADEC), an intervention agency that is established to cater for the wellbeing of oil and gas producing communities in the state.

The claimant, who is a native of, and former chairman of Kokodiagbene, an oil producing community in Gbaramatu Kingdom, Warri South-West Local Government Area of Delta State, on behalf of members of oil producing areas in the state, filed a law suit before the High Court of the state in Warri seeking the interpretation of Section 162 (2) of the 1999 Constitution of the Federal Republic of Nigeria (as amended) and section 13 (1) of DESOPADEC Law of 2006 (as amended), 2007, 2015 and 2018.

In his filing, Chief Mulade dragged two former governors of the state—Senator (Dr.) Ifeanyi Okowa and Dr. Emmanuel Uduaghan—to account for the sum of N1,863,478,177,892.60 (One Trillion, Eight Hundred and Sixty-Three Billion, Four Hundred and Seventy-Eight Million, One Hundred and Seventy-Seven Thousand, Eight Hundred and Ninety Two Naira, Sixty Kobo) that was received by both administrations. Also included as defendants are the State Commission (DESOPADEC) and the Attorney-General of the state.

According to the activist, “It was worthy of note that the Delta State Oil Producing Areas Development Commission (DESOPADEC) Law 2006 (as amended), 2007, 2015 and 2018 respectively was established to expressly execute a clear mandate as stated in Section 13 (1) of the DESOPADEC Law which provides thus: The commission shall receive and administer exclusively 50% of the Oil Derivation fund accruing to the Delta State Government for; (a) The rehabilitation of the oil producing communities/areas of the state; (b) Other development projects as may be determined from time to time by the communities.”

Speaking further, the Ibe Serimowei of Gbaramatu Kingdom noted that, “I am equally dragging them to the court to account for the sum of N1,863,478,177,892.60 (One Trillion, Eight Hundred and Sixty-three Billion, Four Hundred and Seventy-Eight Million, One Hundred and Seventy-Seven Thousand, Eight Hundred and Ninety Two Naira, Sixty Kobo) that was received by both administrations in line with the records available.”

Earlier, upon request, the activist had received on May 11, 2023, from the Office of the Accountant-General of the Federation, a Certified True Copy (CTC) of the 13% Oil Derivation Fund from the Federation Account to the Delta State Government between 2007–2022. The document revealed that the sum of N1,863,478,177,892.60 has been disbursed to the Delta State Government from July 2007 to December 2022 for the rehabilitation and development of the oil producing communities/areas in Delta State.

"It is very disheartening and callous to note that despite the copious and unambiguous provisions of Section 162 (2) of the 1999 Constitution of the Federal Republic of Nigeria and Section 13 (1) of the DESOPADEC Law of 2006 (as amended), 2007, 2015 and 2018 respectively, the former Governors of Delta State, their Excellencies, Dr. Emmanuel Ewetan Uduaghan and Senator (Dr.) Ifeanyi Okowa deliberately and flagrantly abused, violated and breached the above provisions of the Law and misappropriated the said funds for their personal use while at the helm of affairs of the state at the expense of the suffering people of the oil and gas producing communities in Delta State," Chief Mulade alleged.

The activist further pointed out that through Section 13 (1) of the DESOPADEC Law 2006 (as amended) 2007, 2015 and 2018, the Commission is legally and lawfully entitled to 50% from the 13% Oil Derivation Fund from the Federation Account which is calculated at N931,739,088,946.03k (Nine hundred and Thirty-One Billion, Seven Hundred and Thirty-Nine Million, Eighty-Eight Thousand, Nine Hundred and Forty-Six Naira, Three Kobo) from the Delta State Government for both administrations, but the reverse was the case.

"It is imperative to state that from the information obtained and records available, it is obvious that the Delta State Government grossly underfunded the Delta State Oil Producing Areas Development Commission, particularly under Senator Dr. Ifeanyi Arthur Okowa, who received a whooping sum of N1,077,450,285,552,17 but consistently and deliberately disbursed less than the sum of N20,000,000,000 (Twenty Billion Naira) only, annually for the past eight years.

"This was confirmed by the immediate-past State Commissioner for information under former governor Okowa, Mr. Charles Aniagwu, that the state remitted N208 billion from 2015–2023 to DESOPADEC against N538,725,142,776.85k (Five Hundred Thirty Eight Billion, Seven Hundred and Twenty-Five Million, One Hundred Forty-Two Thousand, Seven Hundred Seventy-Six Naira, Eighty-Five Kobo). We have a missing N330,725,142,776.85k (Three Hundred and Thirty Billion, Seven Hundred and Twenty Five Million, One Hundred and Forty-Two Thousand, Seven Hundred Seventy-Six Thousand, Fifteen Kobo), excluding January 2023 -- May 2023.

"Those missing funds must be recovered by every means legally possible for the development of oil and gas producing communities of Delta State," the activist stated.

Prior to the court filing, Chief Mulade had on June 22, 2023, mobilized host communities under the auspices of the Association of Oil and Gas Producing Communities of Delta State to the headquarters of the Economic and Financial Crimes Commission (EFCC), Abuja, calling on the anti-graft agency to probe, investigate and recover the misappropriated funds back to DESOPADEC to enable them develop the oil producing communities in the state.

#penglobalcommunity #DESOPADEC #Delta

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