AKWA IBOM AND 13% DERIVATION FUNDS
The funds are well utilised, writes Eme Archibong
In the International Journal of Financial Research, Volume 9, Number 2, 2018, Cordelia Onyinyechi Omodero, Michael Chidiebere Ekwe1 and John Uzoma Ihendinihu, in their jointly authored article titled “Derivation Funds Management and Economic Development of Nigeria: Evidence From Niger Delta States of Nigeria” write on the derivation principle. They state as follows “The principle of derivation was initially recommended by the Phillipson Commission of 1946 as the yardstick for revenue sharing in Nigeria. Derivation principle means that the proportion of revenue receivable by State Governments from the central pool (Federation Account), must be in the same proportion with their contribution to pool… The underlying reason is that, the people in the area where the revenue is being derived from must have suffered some form of economic and health loss or the other and should be compensated for it… The principle does not only apply to the oil/gas producing states (Niger Delta States) but to all States with solid minerals that generate income to the Federal Government….”
The constitutional basis for the derivation funds is provided for under Section 162(2) of the 1999 Constitution of Nigeria. The rationale for the release of these funds is that they should be fully utilized for the development of the states to which they are disbursed to.
On Friday, 18 November 2022, Governor Nyesom Wike of Rivers State, during a banquet organized by his political party, which had in attendance other G-5 Governors, viz, Seyi Makinde of Oyo State, Samuel Ortom of Benue State, Okezie Ikpeazu of Abia State and Ifeanyi Ugwuanyi of Enugu State, challenged Governors of the South- South States to come forward and give an explanation on how they have utilized the derivation funds which was approved and paid by President Muhammadu Buhari. In his words, “The money was paid to some states in the Niger Delta. Let every state come and account for the money. I, as Rivers governor, can account for it.”
This article seeks to give an answer to how effectively the administration of Governor Udom Emmanuel has administered these funds. Firstly, it is common knowledge that Akwa Ibom State is the first state in Nigeria to own a commercial airline. The only other state to achieve this feat is Cross River. Ibom Air which commenced operations just within four years of the Udom administration is arguably the most reliable airline in Nigeria. It has an unmatched record of schedule reliability and on-time departure. With a fleet of close to 10 planes covering seven destinations: Uyo, Lagos, Abuja, Calabar, Port Harcourt, Yenagoa and Enugu, Ibom Air had lifted over 500,000 passengers in its three years and six months of operations. Known for its top-notch customer service and excellent flight services, Ibom Air has received numerous accolades and positive reviews. Mr. Chidozie Uzoezie, an aviation analyst and Chief Executive Officer of Afritraveller, after he boarded the airline, said, “Most of my expectations were met and even exceeded, especially with respect to punctuality, crew and the actual flight… Speaking in relative terms, the flight was everything I had expected; it surpassed the average domestic flight in Nigeria. And I’ll definitely fly with Ibom Air again”. The continued effectiveness and success of Ibom Air is a testament to the top-notch leadership of Governor Udom, and a reflection of the effective utilization of the derivation funds; a feat Governor Nyesom Wike has not achieved.
Secondly, in terms of industrialization, the Udom Emmanuel has greatly achieved its agenda of transforming the state from primarily being a civil service state into an industrialized state. Numerous industries and factories have sprung up across the state providing thousands of jobs for state indigenes, and also increasing the internally generated revenue of the state. These industries include, but are not limited to the following. One is the Jubilee Syringe Manufacturing Company, which not only has a production capacity of 350 million, but is also the largest syringe company in the entire Africa. Another company is the Metering Solutions Manufacturing Services Limited which currently has the capacity to produce 1,200,000 electricity meters annually. The company supplies meters to Eko, Kano and Port Harcourt Electricity Distribution Companies. Furthermore, it exports its meters to The Gambia and Liberia.
Three is the St. Gabriel Coconut Refinery located in Ikot Akpan Okop village in Mkpat Enin Local Government Area. The refinery which has the capacity to process one million nuts a day in three shifts, is not only the first of its kind in Africa, but also a combination of Asia and European technology. The refinery is projected to provide employment for no fewer than 3,000 direct and indirect staff. Other factories include the Pencil Production Factory, Toothpick Production Factory, Palm Kernel Crushing Plant, Ibesikpo Asutan, Ukanafun, among numerous others. These achievements in terms of industrialization are a testament to the top-notch leadership of Governor Udom, and a reflection of the effective utilization of the derivation funds.
Thirdly, in terms of infrastructure, the Udom administration has done so much. Just within the space of three weeks, when Akwa Ibom celebrated its 35th Anniversary between September 13 and October 4, 2022, the following infrastructural and developmental projects were commissioned. September 13 witnessed the groundbreaking of the AKSU/Google Broad-band based centre in Eket as well as the commissioning of the Ikot Abasi General Hospital in Ikot Abasi. On Wednesday, September 14, internal roads in the Uyo Metropolis were commissioned by the Governor, particularly in Atan Offot and Shelter Afrique areas. The commissioning of 3.72km interconnected Atan Offot Roads signaled the completion of the 113th internal road constructed so far by the Udom administration. Furthermore, the commissioning of the 5.1Km Akwatang, Amawo, Mbiabong Ikot Essien, Obong Okon Essien roads in Shelter Afrique, signaled the 25th road constructed in the area, out of the 30 roads promised by the governor. On September 15, the Centre for Victims of Gender-Based Violence and Skills Acquisition was commissioned. On September 20, the 8.4 Kilometre IBB Flood Control Project was commissioned by Governor Ifeanyi Okowa. Monday September 26 to Friday, September 30 saw the commissioning of the 29km Etinan-Ndon Eyo Road, the 9km secretariat road-Ulliong-Edikor, the 13.1km Anua-Ifa, Mbak Etoi, Adadia Road, the Eket Stadium Access Road, among other projects. On Sunday, October 2, Governor Udom commissioned the Nung Ukim Ikon Ekpang Road. The anniversary celebration ended on Tuesday, October 4 with the commissioning of the Palm Oil Processing Depot in Ukana West, Essien Udim.
Fourthly, in terms of agriculture, some of the notable achievements of the administration include the 1,000,000 day-old-chicks (DOCS)/per month Capacity Poultry Hatchery complex at Mbiaya Uruan through public private partnership (PPP); distribution of 54,538,100 kilograms of Maize Seedlings to farmers; raising of over 20,000 Oil Palm Seedlings in nurseries for farmers; provision of two million improved Cocoa seedlings raised and distributed to farmers; provision of 10 metric tons cocoa fermentation and drying plant at Ananammong, Ini Local Government Area; massive cultivation of cassava in 15 Local Government through FADAMA; establishment of the Ibom Green House, planting of 500 citrus seedlings, 600 hybrid plantain suckers and 1,000 pineapple suckers at the Horticulture Garden in Uyo LGA, amongst others.
Fifthly, in terms of education, on a yearly basis, the Udom Emmanuel-led government pays over N600 million WAEC and NABTEB fees for indigenes in public secondary schools. Furthermore, to tackle the issue of inadequate/ poor infrastructural facilities, the administration embarked on numerous renovation projects in the different local governments of the state.
In Abak/Etim Ekpo/Ika local governments, the government has completed the renovation of the building department, science laboratory and four blocks of classrooms in Government Technical College, Abak. This is in addition to the renovation of Assembly Hall at Community Primary School; Reconstruction of four classrooms at Community Secondary School; Reconstruction of Assembly Hall of Community Secondary School, all in Eka Obong. In Urua Inyang, the Udom Emmanuel administration has completed the renovation of the Assembly Hall and four classroom blocks at St. Patrick School.
Hundreds of renovations have also been undertaken in respect of school facilities in Ukanafun, Oruk Anam, Eket, Onna, Esit Eket, Ibeno, Ikot Abasi, Mkpat Enin, Eastern Obolo, Oron, Mbo, Okobo, Udung Uko, Urue Offiong-Oruko, Etinan, Nsit Ibom, Nsit Ubium, Itu, Ibiono Ibom, Uyo, Uruan, Nsit Atai, Ibesikpo Asutan local governments.
For want of space, this writer could go on listing the numerous achievements of the Udom administration depicting the effective utilization of the derivation funds, but will stop here. In conclusion, Governor Udom has so effectively utilized the derivation funds and done so outstandingly. His achievements are visible to the blind and audible to the deaf. In fact the same Governor Wike, who has challenged the South South State Governors to account for the utilization of the derivation funds is so full of praise for Governor Emmanuel. Some months ago, he had this to say about Governor Udom: “God has really blessed Akwa Ibom by giving us someone like Governor Udom Emmanuel. As a person, I only identify with people whom I can benefit from through sharing of ideas. If I come to a place like this, and the leader is doing well, I don’t envy him; rather, I will ask questions that would encourage me to do better in my place. Governor Udom has touched on all the sectors that have moved Akwa Ibom not only forward, but as one of the best performing states in the country”.
Archibong writes from Uyo
