Former President Olusegun Obasanjo has backed calls for an increase in the 13 per cent derivation revenue allocated to oil-producing states, arguing that the current arrangement does not adequately reflect their contributions and the challenges faced by producing communities.
Obasanjo spoke during the inauguration of the CDU at the Azikel Refinery in Obunagha, Yenagoa Local Government Area of Bayelsa State.
The $1 billion refinery project, owned by Azikel Petroleum, a subsidiary of Azikel Group, is expected to produce 2.5 million litres of petrol and two million litres of diesel daily when fully operational.
Obasanjo urged the chairman of Azikel Group, Dr Azibapu Eruani, to complete the project within the next 12 months, expressing hope that he would witness its full operation.
The former president, who said he would turn 90 next March, recalled laying the refinery’s foundation stone eight years ago and commended Eruani for sustaining the project.
He also praised Bayelsa State Governor Douye Diri for his management of the state’s revenue, while stressing the need for oil-producing states to receive a greater share of the benefits derived from their natural resources.
Eruani said the refinery would promote industrialisation, create economic opportunities and position the Niger Delta as a more active participant in Nigeria’s petroleum industry.
Diri also argued that the 13 per cent derivation allocation was inadequate, insisting that oil-producing communities deserved greater benefits from the resources extracted from their land.
He criticised aspects of the Land Use Act, called for a review of policies affecting resource-owning communities and urged young people in the Niger Delta to acquire relevant skills to take advantage of emerging industrial opportunities.
The governor further appealed for the rehabilitation of roads leading to the refinery, noting that improved infrastructure would support the movement of personnel, equipment and petroleum products.
The refinery is expected to contribute to domestic fuel supply and economic activity in Bayelsa and the wider Niger Delta when it becomes fully operational.