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The law abolishing onshore/offshore dichotomy should be repealed, Oyo State delegates to the National Conference said yesterday.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