Laments Zero Allocation From Derivation
By Ehichioya Ezomon
EVEN while toeing the path of dialogue, the people of Cross River State are protesting the de-listing of the state from the league of Oil-Producing States in the country.
And leading the campaign is the state Governor, Senator Liyel Imoke, who has urged President Musa Yar'Adua to intervene in the matter that has in the last few months seen the state credited with zero allocation from the 13 percent derivation due to oil-producing states.
According to Imoke, Cross River previously received a monthly average of N2.2 billion from the Federation Account. By its de-listing, the allocation fell to slightly above N1 billion a month.
Indeed, last March the state received N1.5 billion and this dropped to N1.05 billion in May. Yet, the state's wage bill stands at about N1.1 billion, as the governor told newsmen in an interactive session at Government House in Calabar on Friday.
The governor is blaming the situation he described as "dire" on the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) and by extension the National Boundary Commission (NBC). He alleged that the bodies misread a Supreme Court judgment on onshore/offshore dichotomy, particularly as it relates to the littoral states (with seacoast), and the controversial ceding of the Bakassi Peninsula to Cameroun.
He argued that what RMAFC and NBC used in de-listing Cross River from the oil-producing states was an observation from the Supreme Court Justice that delivered the judgment.
He said: "It has been said in several quarters, especially in RMAFC and the government of Akwa Ibom State, that the 2005 Supreme Court decision declared Cross River as a non-littoral state.
"This erroneous impression, whether borne of genuine mistake or deliberate mischief, informed the setting up of the maritime boundaries of the state by the application of strict technical principles at the Kano retreat of 2008."
Dwelling on whether the Supreme Court decision removed Cross River from the list of littoral states, as has been claimed, Imoke said:
"The Supreme Court in that case observed that when eventually Bakassi is handed over to Cameroun in accordance with the World Court judgment, it will seem that Cross River State will be hemmed in and no longer be a littoral state.
"The Court stated, however, that this conclusion cannot be reached until the International maritime boundary between Nigeria and Cameroun is firmly established after the handover of Bakassi to Cameroun."
In that judgment, the Supreme Court had actually said: "In the light of the observations, I have expressed above regarding the NBC (National Boundary Commission) revised boundary delimitation, I do not feel comfortable to grant the declaration sought.
"Until both Nigeria and Cameroun conclude their negotiations to finality and the international boundary fixed by the ICJ (International Court of Justice) is modified and published, it would be premature for this Court to determine the maritime boundary of the two states."
The governor noted that, "clearly, the postulation of the Court that Cross River would no longer be a littoral state upon the handover of Bakassi was a mere obiter dictum and did not constitute the ratio in that case, as the issue was held to be premature."
While giving a background to the issue, Imoke said he saw the development coming and had to intimate President Yar'Adua about it.
"When I was informed of a retreat by the RMAFC, I wrote immediately to Mr. President about the intention of implementing the Supreme Court judgment. No court judgment says Cross River should lose oil wells.
"The last administration wanted to resolve the oil wells despite the RMAFC wanting to take a technical decision. The judge made a statement and not a decision of the court. The Boundary Commission said the matter would be resolved in 2010, but we are surprised at their action now.
"The de-listing was a reply to Akwa Ibom Governor's letter for a resolution of the 2005 boundary dispute between Cross River and Akwa Ibom. He (Governor Akpabio) said they should use the historical application and that they (Akwa Ibom) would be satisfied.
"Regrettably, new indices were applied without inviting Cross River and Akwa Ibom and the President was not aware. The Vice President also said he was not aware of the application of the new indices."
On the implication of the de-listing, the governor said: "The losses of the oil wells have significantly impacted on the revenue profile of the state. In the last allocation, Cross River was 36 out of 36 states (received the least allocation in the country).
"Regrettably, we have lost areas to Cameroun; and the decision to cede Bakassi to Cameroun was beyond Cross River. Could the intention of government be to punish Cross River because we are quiet?"
He disclosed that prior to the instant case, Cross River had 76 oil wells with only 26 of them prolific (productive), stressing that with this new definition of boundary, "the boundary is now between Cameroun and Akwa Ibom."
"Cross River is thus landlocked. But then, Cross River is in-between. So, how did the oil wells get to Akwa Ibom? My Akwa Ibom colleague said they got it (de-listed oil wells) from the Supreme Court decision and the ceding of Bakassi to Cameroun."
However, Imoke craves for amicable and political solution to the problem, noting that "the decision that has placed billions of Naira monthly in Akwa Ibom's control is based on politics and not resources."
"If a political decision can give Akwa Ibom derivation it actually does not deserve, why can't the same political decision apply to Cross River?"
He continued: "It is good to resolve the problem amicably. The Supreme Court had said the states could not have continental shelf; only a country can. So, the political solution was to create 200 isobar (a line on a chart or map connecting places having the same barometric pressure at a given time) to enable states benefit from onshore derivation. It was this that enables Akwa Ibom to have oil wells.
"We are saying we do not have dispute with Akwa Ibom. It is in place with Mr. President to resolve the issue. I'm also assuring Cross River people that it will be resolved.
"I, as Governor, have a right to defend and protect the interest of the people of Cross River. I believe a decision should be reached that will satisfy all sides. The President's intervention is being expected next week. A meeting is scheduled for June 9."
He thanked the people of Cross River State for their patience and maintaining peace and opting for dialogue. "But as I said, the state is insolvent. Before the de-listing, we received an average of N2.2b monthly; so, we are now losing about a billion Naira monthly," he added.
Although he stated that there was "nothing we can do at the moment beyond what is in the Constitution," Imoke revealed that his government was trying to shore up its internally generated revenue (IGR), which stood at N300 million monthly when he assumed office in 2007.
Now raking in about N600 million, he said the intention of the government was to raise it to N800 million monthly.
"But we have to be careful not to over-tax our people," he said, insisting that the much-trumpeted resources from tourism were not coming in yet because Tinapa, the hub of the tourism in the state, was without operating guidelines.
He said now that it had been gazetted, businesses were coming with expression of interest.
Governor Imoke also spoke on other issues including his government's achievements in the last two years.
He said: "We have transformed Cross State and developed the rural and urban areas. In a few years ahead, our society will be better.
"If you visit the rural areas, construction is going on; we are building roads; we are improving the infrastructure in local and ancestral communities.
"We are not concentrating on Calabar; we are also working on rural areas in the state. In July, we will start the free health programme. We are building several health centres; we have actually built 130 of such centres.
"In the realm of education, there are 400 secondary schools in Cross River; we have taken the first 60 that we are working on, providing water, infrastructure and computers. After that, we will take the next 60 and so on.
"In the rural areas, we are providing electricity and connecting some 80 communities to the grid. We are taking water supply seriously. We are extending water supply to Ikom and beyond.
"So, as critical as we are, Cross River has transformed significantly. If it continues in the same vein, whoever comes will build on that. A few years from now, society will develop in spite of the challenges."
On Nigeria's democracy at 10, Imoke said the country had tried despite the challenges, remarking that after all, the media thrive under democracy.
"There is a lot of stress, but we should feel relaxed," he said. "It is a challenge, but the greatest achievement is the service to the people of Cross Rivers State.
"Here, we have what can be described as planned development over the years. Democracy has contributed immensely to what we have done.
"Democracy, as it is, is never perfect; it can never be perfect, but at least it is the best for the people of Nigeria.
"We have practised democracy in a way that some people will say it does not measure up to the situation in advanced societies, but it is better.
"Even in civilised societies, there are normal challenges. Even in America, it is not perfect. The issue is that we are too critical of the situation, sometimes constructively, sometimes not constructively."
Macintosh HD:Users:theguardiannewspapersltdgnl:Desktop:News-Imoke on Delist 31/5/09
