••• Says 40% No Longer Tenable
Chairman of the Ondo State Oil Producing Areas Development Commission (OSOPADEC), Prince Biyi Poroye, on Tuesday said the 40 percent derivation allocation to the commission is no longer adequate and should be raised to at least 55 percent.
Poroye made the call at the flag-off of the commission’s 2023/2024 Students’ Scholarship and Bursary Awards in Akure, stressing that development in oil-producing riverine communities costs far more than projects executed on the upland.
“If you spend ₦100 million on a road construction on the upland, you will spend at least double that in the mandate areas. Since 2004, it has remained 40 percent with no increment. If we are asking for just 55 percent today, I think it is long overdue,” he said.
The OSOPADEC boss assured that the commission had put in place strict monitoring mechanisms to ensure accountability.
According to him, apart from the projects department, the audit, budget, and accounts departments now jointly monitor contractors, preventing them from cutting corners.
Poroye decried the poor state of the commission’s facilities and staff welfare despite years of derivation funding.
“Look at our environment. Even OSOPADEC offices don’t reflect where derivation money is being spent. Many units lack basic furniture. How will international agencies partner with us when such essentials are missing? Since assuming office two months ago, we have been working to improve staff welfare and productivity,” he said.
While admitting that riverine areas require more than 55 percent, he maintained that securing that figure would still represent a significant improvement.
“We need more than 55 percent, but if the government gives us 55 percent, we’ll clap for him. The people of the mandate areas will be happy,” he declared.
Poroye further disclosed that the commission had cut costs by adopting alternative dispute resolution instead of prolonged litigation, freeing up more resources for development.
He appealed to the state government and international partners to support OSOPADEC, stressing that improved funding is crucial to transforming the lives of residents in oil-producing communities.
