…Says oil-producing states must continue agitation, current revenue formula just “a starting point”
By Emmanuel Olugua
Former President Olusegun Obasanjo has thrown his weight behind demands for a bigger share of Nigeria’s oil wealth for the Niger Delta, declaring that the current 13 per cent derivation accruing to oil-producing states should only be regarded as a starting point.
Obasanjo said oil-producing states and communities had yet to receive a fair deal from the resources extracted from their land and urged them to continue pushing for an improved derivation formula.
The former President spoke on Monday in Obunagha, Yenagoa Local Government Area of Bayelsa State, while flagging off the Crude Distillation Unit (CDU) of the $1 billion Azikel Refinery.
“You are right that the states and oil-producing communities have not got a fair deal so far. Thirteen per cent is the beginning. You can continue to talk,” Obasanjo said.
He, however, praised Bayelsa State Governor Douye Diri for what he described as the prudent use of resources available to the state, saying the impact was evident in development projects across Bayelsa.
“The most important thing is that even the little you have received, you have used it well,” he added.
The Azikel Refinery, promoted by Azikel Petroleum under the Azikel Group, is projected to produce about 2.5 million litres of petrol and two million litres of diesel daily, in addition to other petroleum products when fully operational.
Obasanjo, who laid the foundation for the refinery about eight years ago, expressed delight at the progress recorded and challenged the President of Azikel Group, Dr. Azibapu Eruani, to complete the facility within 12 months.
“I have told Dr. Eruani that I will be officially 90 years old by next year’s March. It means I will take the boarding pass soon. So, he has to make sure the project is completed before I exit,” he said.
Obasanjo also commended the African Finance Corporation and Afreximbank for backing the project and called for continued financial and technical support to bring it to completion.
Eruani described the installation of the CDU as a critical milestone towards completing the refinery, saying the project would help kick-start industrialisation in Bayelsa and the wider Niger Delta.
He said the refinery was conceived to move the Niger Delta beyond being merely a source of crude oil to becoming an active participant in refining and the petroleum value chain.
Eruani also commended President Bola Tinubu for supporting indigenous refining initiatives, saying the project aligned with the Federal Government’s drive to expand domestic refining capacity and make petroleum products more readily available and affordable.
Governor Diri, in his remarks, said the refinery vindicated decades of Niger Delta agitation for greater participation in the exploitation and processing of resources produced in the region.
According to him, communities that bear the environmental and social consequences of oil production should not remain spectators in an industry built largely around resources extracted from their land.
Diri joined Obasanjo in calling for a review of the 13 per cent derivation formula, insisting that oil-producing states deserved a greater share.
“Thirteen per cent is not enough for the states,” the governor declared.
He also criticised the Land Use Act, arguing that it was inequitable for states to exercise authority over surface resources while minerals beneath the land remained vested in the Federal Government.
“We do not want to take all to ourselves. We just want to be co-players in determining how it is done,” Diri said.
The governor said the Azikel Refinery represented an important step towards changing that narrative by giving Bayelsans and the Niger Delta a greater stake in the downstream petroleum industry.
He urged young people in the state to acquire the skills required to take advantage of employment and business opportunities expected from the refinery, while calling on oil companies operating around the Gbarain-Obunagha axis to support the state government in rehabilitating the road leading to the facility.
Diri also stressed the wider need for African countries to process their natural resources locally rather than continue exporting raw materials and importing finished products.
Other speakers, including Azikel Petroleum board member Dr. Daru Owei and the Ibenanaowei of Ekpetiama Kingdom and Chairman of the Bayelsa State Council of Traditional Rulers, King Bubaraye Dakolo, said the refinery could significantly boost the economies of Bayelsa, the Niger Delta and Nigeria when completed.
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