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Niger Delta Fund Initiative Program:
Proposal - October 2006
Explanatory/Concept Note

Dear All,

Due to endemic corruption and poor governance, oil royalties, particularly the monthly 13% oil revenue derivation allocation from the Federation account, have not been utilized transparently and equitably by the Niger Delta States Governments. A substantial portion of these huge funds have gone into private hands and bank accounts in Nigeria and in western countries while the people are consigned to embarrassing degrading poverty.

The policies put forth in this bill titled “BAYELSA STATE OIL FUND COMMISSION) will bring increased prosperity to local oil bearing communities and the state in general, substantially decrease conflict in the region, and provide security for oil production.

While all the eight local areas of Bayelsa State are oil producing areas, special attention should be given to direct oil producing communities who bear the brunt of any oil spill.

In many reference workshops organized across the Niger Delta on issues of good governance and oil revenue appropriation, participants agreed to the setting up of an institutional mechanism whereby the 13% oil revenue can be transparently administered rather than lumped into the normal monthly state allocations. This way, it is agreed that identifiable projects could be embarked upon in oil bearing communities and people can easily ask questions. Ondo State already has such a body with an excellent track record of project execution and transparency.

This proposal should not be confused with past Agencies like the Petroleum Trust Fund (PTF) Oil Mineral Producing Areas Development Commission (OMPADEC) or even the current NDDC etc which are controlled by the Federal Government at Abuja without a say by the local communities.

It should be noted that this Bill is being presented to Ijaws in the Diaspora for inputs, which would hereafter, be subjected to a public consultative forum in Yenagoa before finally presented to the State House of Assembly thus engaging a broad spectrum of civil society in this governance issue.

Please, be free to make your inputs within the next 14 days and email it to me copying the following email addresses:, alanna@earthrigh&