Onshore-Offshore is settled, Presidency says

[DT]

The Presidency yesterday warned against any attempt to re-open the debate over onshore-offshore dichotomy in the calculation of oil revenue derivation payable to littoral states, saying this could cause disaffection in the polity.

Kano State Governor Rabiu Kwankwaso said two weeks ago in an interview with Daily Trust that the abrogation of dichotomy principle was unfair and has worsened poverty in non-oil states. A statement in Abuja yesterday by presidential spokesman Reuben Abati said there was no need to reopen a controversy on a matter that was "addressed" eight years ago.

"The Presidency views with grave concern the current attempt by some politicians to heat up the polity by seeking to reopen fresh conflict and controversy over the onshore/offshore abrogation law which was enacted by the National Assembly in 2004. Some of the pronouncements are disruptive, outrightly mischievous, and aimed at causing disaffection," Abati's statement said, without naming the politicians referred to.

"The Presidency strongly advises such politicians to desist from playing up sectional and ethnic sentiments, over a matter that was addressed eight years ago to the benefit of all parties concerned. At a time when the government is working hard to resolve security challenges in parts of the country, the political elite across board is expected to cooperate with the Federal and state governments to promote the cause of peace, stability and national transformation.

"Those who are issuing threats and counter-threats over every issue, are obviously not just re-inventing a controversy, they seem determined to fuel acrimony and needless conflict.

"Government is working tirelessly to ensure the full enjoyment of fundamental rights by all Nigerians, in an atmosphere that is free of rancor and tension. No individual, political interest or group should attempt to violate this, either overtly or covertly. The Federal Government wants to reassure all Nigerians that while it respects every individual's right to the freedom of expression, it is equally duty bound to forestall any attempt to undermine the peace and security of the country, under whatever guise."

The onshore-offshore dichotomy was abrogated in February 2004 following two years of legislative and political rigmarole aimed at working out a solution to a 2002 Supreme Court ruling that affirmed the Federal Government's powers of control over oil derived offshore.

Based on the law, oil extracted offshore will form part of the computation of the 13 per cent derivation in revenues allocated to the littoral states.

In his interview, published in the August 8 edition of Daily Trust, Kwankwaso said, "You see if you have gold in your land and you are claiming certain percentage to be paid to you, one can understand that. But if you have oil wells 200 nautical miles away from your land and you are claiming that that well is your own, I don't think that is correct."

The post-dichotomy system has over the years funneled hundreds of billions to the oil states bordering the sea, namely Rivers, Bayelsa, Cross River, Akwa Ibom, Delta and Ondo, thereby slashing revenues that would have been shared among all the 36 states.

"Whether we like it or not, what we are seeing today is partly the consequence of the action of the past that made the North very poor," Kwankwaso said, adding "in a country where you have two sections, one for the rich and one for the poor, that is the beginning of a huge crisis..... I also want those who will benefit from our weakness to be conscious of the fact that the more the rich makes the poor poorer, certainly the more the poorer will not sleep and when the poorer does not sleep, the rich will find it equally difficult to sleep."

Daily Trust