...South West wants re­turn of on­shore/ off­shore di­chotomy

Daily Trust - - NEWS - By Nu­rud­deen M. Ab­dal­lah

The law abol­ish­ing on­shore/off­shore di­chotomy should be re­pealed, Oyo State del­e­gates to the Na­tional Con­fer­ence said yes­ter­day.

They said all rev­enues de­rived from off­shore oil ac­tiv­i­ties must ac­crue to the federal govern­ment to be shared be­tween the fed­er­at­ing units.

The del­e­gates ex­plained this po­si­tion in a paper pre­sented by their leader Chief Adeniyi Ak­in­tola, SAN to the con­fer­ence.

They said that “for the cal­cu­la­tion of rev­enue de­rived from oil ac­tiv­i­ties, a di­chotomy must be main­tained be­tween on­shore and off­shore rev­enue.”

The South West state’s del­e­gates ex­plained that “100 per­cent of rev­enue de­rived from off­shore oil ac­tiv­i­ties must ac­crue to the federal govern­ment sharable be­tween the federal govern­ment and the fed­er­at­ing units on the ba­sis of con­sti­tu­tion­ally agreed rev­enue shar­ing for­mula.”

This po­si­tion ree­choed the ear­lier one by north­ern del­e­gates who are in­sist­ing that the ab­ro­gated di­chotomy be re­turned.

The Oyo del­e­gates said for rev­enue de­rived from on­shore ac­tiv­i­ties, the federal govern­ment should take 30 per­cent, oil pro­duc­ing states 50 per­cent, while 20 per­cent to be shared to states where oil pipe­lines passed through and other states based on their con­sump­tion lev­els.

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