The House of Representatives is currently evaluating a constitutional amendment bill that aims to boost the derivation fund from the current minimum of 13% to at least 50%. This change is intended to support the development of Nigerian states and regions where mineral resources are extracted.
Sponsored by Awaji-Inombek Abiante and eight other members, the bill is scheduled for debate on Tuesday. The Speaker of the House, Tajudeen Abbas, confirmed that copies of the bill will be distributed for review following a session during plenary where it was presented for a second reading.
The proposed amendment seeks to modify Section 162(2) of the 1999 Constitution by removing the phrase “not less than thirteen percent” and replacing it with “not less than fifty percent.” The sponsors argue that this initiative aligns with the current administration’s commitment to rectifying past injustices and promoting true federalism.
They emphasized that the proposal reflects the aspirations of Nigeria’s founding fathers, stating: “Let us indeed renew the hope not only of our founding fathers but also that of generations after us by the unanimous endorsement to review quickly and to amend the formula to not less than fifty percent according to the Independence Constitution of 1960 and the Republican Constitution of 1963.”
Furthermore, the sponsors noted that including all revenues from VAT in the distribution arrangement would foster competition among states, encouraging a more investment-friendly environment and enhancing revenue generation. They highlighted the discovery of significant mineral resources across various states, including one billion barrels of crude oil and gas in the North-Eastern region, alongside gold fields and tin mining activities in other areas.