By Fatima Saka
The Senate Committee on Oil and Gas Host Communities, chaired by Senator Benson Sunday Agadaga, has issued a stern warning to oil-producing states refusing to cooperate with its investigation into the utilization of 13% derivation funds.
The chairman emphasized that these funds, allocated to oil-producing states, are intended to ensure that communities in these regions benefit fairly from the resources extracted from their lands.
During a session on Monday in Abuja, Senator Agadaga criticized the non-compliance of key oil-producing states, including Akwa Ibom, Rivers, Bayelsa, Ondo, and Anambra, which failed to appear before the committee. Only Lagos and Abia states honored the invitation.
Speaking to journalists, the chairman stressed that on two occasions the senate has sent invitation to the states but it has been turned down.
“The purpose of these funds is to ensure that oil-producing communities get their fair share of the national wealth,” said Agadaga, who represents Bayelsa East Senatorial District.
He noted that this is the second time since the enactment of the Petroleum Industry Act (PIA) in 2021 that the Senate has formed a committee to oversee the utilization of these funds.
“We called for meetings, but only two states showed up,” Agadaga lamented.
“This committee will not tolerate the disregard for its mandate. Our goal is to ensure the proper utilization of the 13% derivation funds for the benefit of the communities. These resources should alleviate hostilities, improve relationships with oil companies, and maximize crude oil production for increased national revenue,” he stressed.
The Senator underscores the importance of accountability in achieving Nigeria’s oil production targets, as the country is currently underperforming compared to the quotas set by OPEC. “We must maximize production and revenue. Any state that continues to violate the committee’s mandate will face consequences.”
Agadaga revealed that 10 states are designated as oil-producing, but only Lagos and Abia attended the probe.
He criticized the absence of major stakeholders, stating, “These states need to account for how they have utilized these funds. They should explain why they are not cooperating and demonstrate how the funds are helping to improve oil production and generate revenue.”
The Senate committee emphasized that these funds are crucial not just for community development but for boosting national economic growth. It warned that further non-compliance would prompt the committee to explore stronger measures to enforce accountability.
