State/local interventionist agencies (OSOPADEC and DESOPADEC)

The attempt of this study at evaluating the extent to which oil resources have impacted on the lives of citizens of the Niger Delta shows that oil has brought associated negative impact or curse on the region. These negative impacts would, however, have been ameliorated, and oil turned into a blessing, if only two fundamental elements of sustainable development namely, mature democracy and quality institutions existed. One of such institutions is a local or state based interventionist agency, as currently represented by OSOPADEC.93According to officials of OSOPADEC, 94 one or two other states in the Niger Delta have visited is office to seek advice on their plans to set up a similar institution in their  respective states.

To translate oil ‘curse’ into ‘blessing’, a human rights approach to development is hereby proposed – an approach which requires active participation of all stakeholders in the oil – producing areas. The creation of local or state interventionist agencies with appropriate enabling laws is indeed a major step in the direction of ensuring good governance, transparency and accountability in the management of oil resource accruing to communities in the Niger Delta, in the final analysis.

Ondo State oil producing areas development commission (OSOPADEC)  

Although OSOPADEC has not existed long enough to enable one undertake a full appraisal of it performance, it appears that the novel experiment, specifically its emphasis on the utilization of a proportion of the 13 percent oil derivation fund for oil producing areas of the state is worthy of emulation by other states in the Niger Delta.

Box 1: Ondo State Oil Producing Areas Development Commission (OSOPADEC)

OSOPADEC was established by law on October 29, 2001 as an interventionist agency to cater for the development of the oil producing areas of the state. It was created as an institutional framework for the development of that part of the state. It was inaugurated in November 2001.

Its functions, as spelt out in its enabling law are:

(a) To receive and administer exclusively 40% of the 13% oil Derivation Fund accruing to the state government:-

(i) For the rehabilitation and development of oil producing areas in the state and

(ii) Other development project as may be determined from time by the commission

(b) To release a sum of 5% of the 40% accruing to the commission to the host local government of the oil producing areas.

(c) To liaise with the relevant federal and state government authorities on the control and effective methods of tackling the problems of coastal erosion and oil spillages in the state;

  1. d) To ensure fair and equitable distribution of development projects in the oil – producing areas or the state;
  2. e) To ensure judicious utilization of the fund accruing to the commission; and
  3. f) To execute other works or projects and perform such other functions which in the opinion of the commission, is geared towards the development of the oil producing areas of the state.

Its budget has to be approved by the House of Assembly. Its new board, constituted on October 21, 2003 has seven members, including the chairman. The six other members are made up of three representatives from the oil-producing areas of the state and three others representatives from the three senatorial districts. Thus, four members from oil-producing areas are in the board.

SOURCE: Text of address presented by the Executive Secretary of OSOPADEC, Mr. Ajose Kudechinbu, in a press conference at Akure, December 9, 2002.95

 Box2:

Some of its achievements as at December 2002 are:

–           Construction of 432 housing units in 90 communities in pursuance of the rehabilitation of the people displaced during the Ijaw/Ilaje communal clashes.

–           Award of contract for the construction of 42 schools.

–           Award of contracts for the construction of health centres at Zion -Pepe, Obe Rebiminu and Orioko-Iwamimo (only one or two health centres existed in the oil-producing areas prior to OSOPADEC

–           Award of contracts for the construction of Jetties at Odun-Igo and Awoye.

–           Replacement of damaged wooden electric poles at Ugbonla with 180 concrete poles and electric cables.

–           Award of contract for the construction of governor’s office annex at Molutehim.

–           Construction of 17 – room OSOPADEC Office complex at Akure.

–           Construction of OSOPADEC Guest House at Akure.

–           Acquisition and rehabilitation of OSOPADEC Area office at Igbokoda.

–           Purchase of two project boats

–           Construction of township roads at Igbokoda and Makun – Atijere – Aboto Road.

–           Sand filling of Ugba, Ugbonla and Manin.

–           Approval of the sum of N20 million for disbursement on skill acquisition/employment schemes.

–           Approval of staff housing and vehicle loans schemes.

–           Provision of additional 500   housing clinics in 2003 and 4 water supply schemes at Molutehin, Obe Rewoye, Abetobo and Ogogoro.

Sources: (i)Text of address presented by the Executive Secretary of OSOPADEC, Mr. Ajose Kudeminbu, in a press conference at Akure, December 9, 2002.96

(ii) Brief on the activities of OSOPADEC.97

However, it will be recalled that the vibrant resource control advocate Obong Victor Attah, a one time past Governor of Akwa-Ibom State, had facilitated such a law that set up an oil commission for the state, which has since taken effect from 1st July 2001. Accordingly, the law provides inter alia that:

“….. the  Akwa Ibom State Government will have 57 percent of the derivation fund, local governments 20 percent and oil producing areas will receive special monthly allocation of 15 percent ….” 98

 There came the idea for the establishment of other state development agencies and this idea saw the emergence of DESOPADEC.

Delta State Oil Producing Area Development Commission (DESOPADEC)

The establishment of DESOPADEC by the Delta State Government saw the collection of 50% derivation sums accruing to the commission from their 13% revenue. In fact, section 16 (1) of the Act pungently asserts that:

16 (1) the sources of funds of the commission shall be:-

  1. a) Fifty percent (50%) of the thirteen percent (13%) Oil Derivation Fund or any other percentage (%) approved accruing to the Delta State Government from the Federation Account;
  2. b) Any other source of fund to it under any law in force in the state; and
  3. c) All other assets that may from time to time accrued to the commission”.

One can adequately assert that the formation of DESOPADEC was the greatest legacy that Chief James Onanefe Ibori bequeathed to his people. However, even though it has been argued that it came late, it is nevertheless, better to be late than never.

It should be noted however that the commission has been politicized and that the developmental strides which the commission is supposed to pursue has been ravaged by politics of favouritism and who gets what, when and how.

In another view, there are clear indications also that Imo State has set up its own oil Commission. Nevertheless, we use this opportunity to appeal to all the remaining oil-producing states – Rivers, Bayelsa and so no, to forthwith, set up in their respective state oil commissions to enable the people at the grassroots level also benefit from their God-giving resources. However, the establishment of such commission should be devoid of any form of politicization, ethnicization, favoritism and corruption that has hampered the progressiveness of all other commissions.

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62  Ibid.

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119           Ibid

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