Oil communities assured of 10% equity

Source: The Nation Newspaper Published:Friday, January 22nd, 2010

The Federal Government has allayed fears that the proposed 10 percent equity share of offshore proceeds intended for oil producing communities may be hijacked, denying the beneficiaries and frustrating its empowerment plan for the people .

It said the proceeds would not go through the state governments but directly to the people that will determine what to do with the funds.

It was also disclosed that the new town development project would commence before the second half of the year. The pilot project has entered the second phase and the award of contract will begin in April.

One new town would be constructed in each of the nine Niger Delta states.

The Minister of State for Niger Delta Affairs, Elder Godsday Orubebe, made the disclosures in Abuja yesterday at a presentation on housing provision in the Niger Delta by Trans Atlantic Mortgages Limited.

Saying that President Umaru Musa Yar’Adua has done all that was necessary, leaving others like the National Assembly to do their bit, Orubebe added, " President Yar’Adua was very clear about the pronouncement, that the proceeds must go directly to the people in the oil producing communities as a way of direct economic empowerment.

"The implication is that communities would have their own Trustees who would manage the fund and ensure that it goes down to the communities. They will initiate the projects and programmes they want and be in the position to take the implementation, monitoring and payment.

"With this, they will have no one to blame for failure but themselves if anything goes wrong with the fund. Despite the existence of several palliative agencies, the agitations are still there and in order to make the people have a sense of belonging or ownership of the resources in their domain, the government felt the equity share is the best option".

Besides, Orubebe noted that the government is desirous of putting s permanent end to restiveness and poverty in the region, disclosing that the pilot project of the new town development project would soon begin.

"Already the first phase of feasibility studies and the drawing have been completed we are now going into the third phase of awarding the contract and that would not take longer than April this year" he said.

While he also disclosed that the East West railway would also commence within the year as the Ministry is working in concert with the Ministry of Transport, Orubebe said private mortgage firms would be involved in the project because "not only would it prove that we have the capacity and capability to deliver on big projects like this but also ensure a viable means of empowering local enterprises".

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