13% DERIVATION RIVERS STATE REPORT ABOUT KEBETKACHE WOMEN DEVELOPMENT & RESOURCE CENTRE

ebetkache Women Development & Resource Centre is non-governmental organization registered with the Corporate Affairs Commission (CAC) in Nigeria Kwith IT/CERT N0.15890. Kebetkache is a community action, education and advocacy women's rights organization working on development and social justice issues that affect women and children in Nigeria and around the world.

Kebetkache envisions a just society where women's rights and gender equality are mainstreamed irrespective of status, race, background or diversity. Kebetkache's mission is to achieve gender equality, environmental and climate justice through advocacy for good governance, movement building and capacity strengthening. Kebetkache is committed to supporting women to achieve gender equality. The organization helps women to understand their rights through sensitization, capacity development, research, mentoring, and movement building targeted at increasing their skills and creating opportunities that will help them solve identified problems.

The overall change Kebetkache wants to see: · A sustainable, vibrant, healthy community of women with recognized rights, power and opportunity to participate in the decision-making processes.

Kebetkache identified the following domains of change. · Implementation of community driven gender equality strategies. · Environmental responsive extractive practices with increased participation of women in all decision making processes. · A sustainable environment with a remediated ecosystem with vibrant rural health and security. · Women's rights supported and protected. · Support peace building processes

Kebetkache believes that the following action areas are pathways to bringing about the domains of change. · Build and sustain an active women's environmental justice movement in the Niger Delta region of Nigeria. · Contributing to movement building for environmental and climate justice at the African regional and global levels. · Framing and implementation of gender-based, rights-based contextual policies. · Contribute to public policies that will increasingly reflect gender equality. · Continuous advocacy to governments at all levels to promote democratization and inclusive governance. · Build synergy with civil society organizations and social movements. · Replicate and support successful Kebetkache development approaches. · Strengthen partnership with government and international development stakeholders. · Design and develop approaches for community capacity development · Provide tool for engagement and evidence-based advocacy · Design and develop approaches/strategies for engendering peace and security. Mainstream platforms and mechanisms for income generation and alternative livelihood structures in community.

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 ACKNOWLEDGEMENTS

his research was conducted with the funding support of Ford Foundation without which it would have been difficult to accomplish the task. Our special Tthanks goes to Ms Eva Kouka for her guidance all through the research process.

We also acknowledge the contributions of other key persons who played key roles in the processes of conducting this research and eventual production of this report. First is the Technical Lead Researcher, Dr Sofiri Joab Peterside (Department of Sociology, University of Port Harcourt, Nigeria) who framed the research design and led the process of implementation from the consultation workshop, methodology workshop, production of research instrument, report writing workshop, validation workshop and compilation of final report.

Special thanks to members of the research team – Tijah Bolton, Princess Victoria Umoh, Saviour Akpan, Morris Alogoa, Godson Jim-Dorgu, Stella Wellington Jaja, Voke Ighorodje, Isioma Adigwe, Dr Ayopo Olotu, Lawrence Dube, and Emmanuel Nwakama. We deeply appreciate Mr Moses Vincent, who analyzed the data generated from the questionnaires and also interpreted the data. We also say thank you to Mr Folahan Johnson, who produced the infographs version of the report.

Finally, we want to thank the staff of Kebetkache Women Development & Resource Centre for their contributions towards the entire research processes.

@Kebetkache

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 PURPOSE OF THE RESEARCH ON IMPLEMENTATION OF 13% DERIVATION FUND

he research on the use of the 13% derivation fund is conducted by the Kebetkache Women Development & Resource Centre to examine the Textent which the 13% derivation fund is deployed to address the problem of poverty and more specifically, how the 13% derivation fund is benefitting the oil bearing communities in Akwa Ibom, Bayelsa, Delta and Rivers states.

Kebetkache's intervention is to build a critical mass of women in the Niger Delta who will advocate for an equitable benefit sharing of oil revenue through building their capacity to demand accountability from the Nigeria government. This is significant to addressing the low level of development in oil bearing communities and also strategically positions women in the processes of natural resource governance. The research reveals the lack of available sustainable social services within the community by highlighting level of availability of power supply, health care delivery services, pipe-borne water, transport services, and educational services.

The research aimed to assess the extent of awareness of the existence of the 13% derivation fund. As revealed by the findings a great number of the respondents constituting 94% indicated that they are aware that 13% derivation fund is a percentage from crude oil paid to States in direct proportion to the amount of mineral resources extracted from their communities. The research sought to ascertain the perception of the respondents of how the fund can be managed. However the common opinion among community members is that the Federal Government should stop paying the 13% derivation fund to the state governments.

The research further set out to provide necessary responses to the following questions: (I) Do we need to create new governance structures for the use of the derivation fund? (ii) What corpus of data exists on the 13% derivation fund in the proposed core study states? (iii) What is the current state of critical infrastructure, health, economic development and gender relations in the study area?

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 KEY FINDINGS

Infrastructural development is Rivers State is poor and most basic social amenities such potable water, electricity, housing, public transportation, quality road and rail networks, health delivery, employment opportunities are absent, especially in oil bearing communities.

The present state administration, although making good efforts, has performed unsatisfactorily in the delivery of quality governance and in the provision of requisite infrastructure and social amenities.

Successive administrations in Rivers state appears to have grossly mismanaged the 13% derivation funds as the evidence of proper and productive utilization cannot be seen in concerned communities.

Dissatisfaction with the way the funds are managed by the State is a source of most agitations in the State and the challenges of development the oil bearing communities face.

There is currently no agency or commission in Rivers State established to oversee the administration of the 13% derivation funds.

People of oil bearing communities will prefer the Federal Government to pay affected communities directly in the absence of a commissioned agency that will be held accountable for utilization the derivation funds for proper development of oil bearing communities.

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 RECOMMENDATIONS

One of the functions of the State is to justify its existence and political legitimacy by meeting the needs and aspirations of the people it represents. The effectiveness and quality of public goods and services affects how the citizenry perceive the State as essential, indispensable, useful or otherwise. Thus, concerted efforts should be made by the government at all levels to improve on the provision of infrastructure and social facilities to the citizenry.

Following the allegations of misappropriation and poor management of the derivation funds accruable to oil bearing communities and the attendant protests against the State's control of the funds on behalf of the concerned communities, the study suggests that the Federal Government should, as a matter of urgency, reexamine the management of the 13% derivation fund by the State Government and also consider creating a special agency to manage the affairs of oil-developing communities. The agency must work in tandem with the communities in identifying their core needs and fashioning out ways to resolve them.

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 4.1 Background Information (67.in) in the extreme North. It is usually 4,698 mm (185.in) at Bonny along the coast and 1,862 mm (73.in) at Degema. Some parts of the State receive up to 150 of the 98 respondents mm (6.in) of rainfall even during the dry period. conrmed the availability Relative humidity in the State occasionally dips below o f e l e c t r i c i t y i n t h e i r sixty percent (60%) and fluctuates between ninety communities/ neighbourhood percent (90%) and hundred percent (100%) for most of 51% the year (Jones, 2000; Naluba & Arokoyu, 2015; Niger Delta Budget Monitoring Group, 2019). Rivers State, sometimes referred to as ‘Rivers’, is one of the nine States in the Niger Delta region of Nigeria, The ethnic composition of the State is as another located in the South-South geopolitical zone of the attractive thing about the people of Rivers. Generally, country. With twenty-three local government councils, the people are referred to as ‘Riverians’, with assorted 27 different languages with over 300 applicable ethnic groups, such as the Kalabari’s, lkwerre’s, dialects, and an estimated population of 7,303,900, up Okrika’s, lbani’s, Ekpeye’s, Ogba’s, Etche’s, Khana’s, from 5,198,716 as of 2006, Rivers State stands as the Gokana’s, Eleme’s, Abua people, Odual people and sixth most populous State in the country (NPC, 2016; Ndoni’s, occupying various areas in the State as shown NBS, 2016; Brinkhoff, 2017). in figure 1. Whereas English and its variant – pidgin, is a common means of communication, Rivers State is Rivers State is one of the twelve States created by the home to diverse indigenous ethnic groups with Gowon regime on the 27th of May 1967. Its capital and multiplicity of languages. Languages such as Ogba, largest city, Port Harcourt, is economically significant Kalabari, Ogoni, Ijaw, Obolo, Ikwerre, and Tẹẹ, are as the hub of Nigeria's Oil and Gas business. predominantly used by different ethnic groups in the State. Linguistic scholars have grouped the people of Rivers State, nicknamed the ‘Treasure base of the Rivers into six major linguistic groups, namely: the Nation’ owing to her abundant wealth in oil and gas, is bounded on the South by the Atlantic Ocean and on the North by Imo, Abia and Anambra States; to the East, the State is bordered by Akwa Ibom State and by Bayelsa and Delta States to the West.

It is a predominantly low-lying pluvial area located in the Eastern part of the Niger Delta on the ocean ward extension of the Benue trough. The State has a total land area of 11,077km2 (4,276.9 sq. miles) and a topography with features of tropical rainforest, freshwater and mangrove swamps and coastal sand ridges. The coastal land ridges are characterized by Figure 4.1(1): Rivers State showing Local Governments sandy loam soils and are suitable for the cultivation of & Head Quarters (Naluba & Arokoyu, 2015 several crops such as coconut, oil palm, yam and ljoid, the lower Niger (lgboid), Ogoni, Central Delta, cocoyam. Delta Edoid and the lower Cross. The ljoid group consists of language dialects namely Kalabari, Bile, The terrestrial parts of Rivers State account for about Okrika, lbani and Nkoro. The Lower Niger (lgboid) sixty percent (60%) of the State’s total area while the comprises dialects such as Ekpeye, lkwerre, Ogba, riverine areas make up the remaining forty percent Egbema, Ndoni, Etche, and lgbo. (40%). Rivers State is also notable for its seasonal rainfalls which are generally irregular and very heavy. The Ogoni group includes a large number of dialects In most parts of the State, rain occurs, on the average, which can be grouped into four, namely: Khana, every month of the year, but with varying duration. Gokana, Ogoi and Eleme. The Obolo language spoken by Andoni and Opobo people is in the Lower Cross The wet season usually begins in February and peaks in group, with the rest found in Akwa lbom and Cross July, sometimes lasting for more than 290 days. The River States (Dihoff, 1983; Fardon & Furniss, 2002; only somewhat dry months in the State are January and NDEBUMOG, 2019). February. Rivers State, with its diverse ethnic and linguistic Total annual rainfall in the State decreases from about groups, is also very rich in culture and crafts, 4,700 mm (185.in) on the coast, to about 1,700 mm particularly in music, dances, wrestling, plays,

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 folklores, and masquerades. Literature in Rivers State than ninety industrial firms, including Shell Petroleum consists of the oral tradition of folktales, legends, Development Company (SPDC), AGIP, Texaco, myths, proverbs, riddles, poetry in religious Mobil, Elf, NPRC, Michelin, West African Glass incantations, and others; while popular sites of Industry, Alcan Aluminum, Metaloplastica, attraction in the state include the Orashi forest reserve, Risonpalm, NAFCON and Pabod Breweries. Asides Finima Beach and Nature Park, Zoological garden, crude oil and its derivatives, other mineral resources Isaac Boro Garden Park, Port Harcourt tourist beach, found in Rivers State include glass sand, clay, marble, Port Harcourt Cultural center, Statue of King Jaja of lignite, and silica sand. Opobo, Biseni Forest, Okrika Acquatic stadium, Water glass Boatyard, Rivers State Museum, Ifoko Beach, Fishing and farming are also popular economic Bonny Island, Port Harcourt zoo, the Port Harcourt oil engagements of the people of Rivers State. Farming refinery, Pleasure park, Adoke Amesiamaka stadium especially provides a source of income for the and the University of Port Harcourt. inhabitants of Rivers State with the cultivation of oil palm, melon and plantain at an appreciable level. From Rivers State is also known for its rich and symbolic all these, the state boasts of a Gross Domestic Product festivals. Festivals held in the State include the Owu- (GDP) of $21,073 billion, and ranks 2nd nationwide Aru-Sun festival, Nwaotam Festival, Oki Festival, with a per capita income of $3,965 (PROSHARE, New Yam festivals, the Port Harcourt Carnival 2018; NDEBUMOG, 2019). (CARNIRIV), fishing festivals in Amassaona, as well as the war canoe displays/boat regattas in Bonny Rivers State, because of its serene and attractive (Fardon & Furniss, 2002; Alagoa, 2005). environment and the hospitability of its people, has been described as a tourist attraction and a home of These festivals mark the celebration of various events hospitality. Although disrupted lately by pockets of in the communities of the state such as births, funerals, violence, rising criminality and environmental marriages, onset of a New Year, installation of royalty, degradation, the State still remains an attractive hub for and many others. A notable instance is the Nwaotam holidaying and tourism. Rivers people are naturally festival which marks the beginning of the series of rites courteous and warm; they derive pleasure in and celebrations that usher in the New Year in entertaining visitors and making strangers feel at home. communities like Opobo and Bonny. As noted by Nnam (2014), the weather, wildlife, historical relics, captivating beaches coupled with the With enormous reserves of crude oil and natural gas, warm hearted nature of Rivers people, makes the State Rivers State alone accounts for more than 40% of a lovely environment to live in. Nigeria’s crude oil production. Rivers State has very large deposits of crude oil and natural gas and has For Nnam (2014) Rivers people can be classified as a played a prominent role in the Nation’s oil and gas people who possess the gift of hospitality. Rivers sector. people also love to have fun, party and celebrate memorable moments with friends and family. It is one of the states, alongside Akwa Ibom, Bayelsa and Delta States, that contribute to over 80% of crude Events such as marriages, festivals, anniversaries, oil production in Nigeria. NEITI’s Fiscal Allocation burials, etc, are usually celebrated colourfully in all and Statutory Disbursement Audit (NEITI’s FASD) pomp and splendour. All of these distinguishing audit covering the period 2007-2011 revealed that characteristics make Rivers State a choice place for this Rivers State tops the list of gainers with N1.172 trillion (NEITI, 2015). The NEITI 2019 Audit showed that f r o m 2 0 1 2 - 2 0 1 6 , R i v e r s S t a t e r e c e i v e d 4.2 Selected Local Government Areas 931,097,946,823.61 percentage change of -20.6%. The decline in Rivers State fund may be connected with the This study focused on two local government areas, Soku Oil Field Disputed Fund which amounted to Port Harcourt local government area (PHALGA) and 109,004,527.08 which percentage is 300% (NEITI, Akuku-toru local government area (AKULGA). 2019). These areas were purposively selected on the basis of Apart from these, Rivers State harbours the first one being the State capital and an upland area, and the petroleum refinery in Nigeria as well as one of the other an oil producing riverine area. The rationale for biggest liquefied natural gas facilities in the world. this selection criterion is to ensure that both Owing to this, several multinational companies in the geopolitical dichotomies in the State are represented, oil and gas sector operate in Rivers State with more and also to include the administrative headquarters of the State in the survey.

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 Port Harcourt local government area (PHALGA) is Abaji Okolo, Leleama, Dere-Ama, Angalaobio and one of the very popular local governments in Rivers Opukiri, with its administrative headquarters in the State mainly because it is home to the State’s capital as town of Abonnema. well as various Federal agencies and State parastatals. It is an upland area bounded to the South by Okrika The major languages spoken within Akuku-toru Local government area, to the East by Eleme Local include Kalabari, pidgin and English languages, while government area, to the North by Obio-Akpor Local traditional religion and Christianity are the commonly government area and to the West by Degema Local practiced faiths. government area. Akuku-toru is known for its enormous deposits of PHALGA has a total land area of 109km2 and an crude oil and natural gas and the activities of estimated population of 756,600, up from 538,558 as multinational and local oil exploring firms contribute of 2006 (Brinkhoff, 2017). The area called ‘Port the most to the economy of the area. Harcourt’ today was built in 1912 by the British colonial administration under Sir Frederick Lugard, Fishing is also a popular economic engagement in the then Governor of Nigeria, and was christened ‘Port Akuku-toru LGA owing to the vast areas covered by Harcourt’ in honour of Lord Lewis Vernon Harcourt, water within the area. Akuku-Toru people are a peace the then secretary of State for the Colonies. The Port loving, industrious and an ingenious cultural group City was originally built to export coal from the (Alagoa, 2005; Brinkhoff, 2017; Man Power Nigeria, collieries in Enugu to Port Harcourt in order to meet the 2019). industrial and domestic needs of the British administrators. Akuku-toru people are also known with festivals such as masquerade festival usually celebrated at end of As noted by Njoku (2008) the outbreak of the First every year, while important landmarks in the area World War and the difficulties in shipping coal from include the Soku gas gathering plant and the San Barth Newcastle to Nigeria, made the British consider it Manifold (Alagoa, 2005; Brinkhoff, 2017; Man Power absolutely necessary to harness the coals discovered in Nigeria, 2019). Enugu for both use and export.

Port Harcourt local government area is a major 4.3 Research Methodology industrial centre in Rivers State as it has a large number of multinational firms as well as other industrial The total population of the two selected LGA’s is concerns, particularly businesses related to the put at 982,900 according to recent estimations by petroleum industry. The LGA also has very popular National Populations Commission (2016) and the residential areas which include areas such as Port National Bureau of Statistics (2016); however this Harcourt Township, Elekahia, Rumuomasi, D-line, study employed a cross-sectional survey involving Rumukalagbor, Elelenwo, Iboloji, Ogbunabali, 100 purposively selected research participants Rumuola, Diobu, Amadi Flats, Orogbum, Abuloma, from the state; specifically fifty (50) respondents Amadi-Ama, Borokiri and GRA phases 1 – 5. The per local government area. main industrial area in Port Harcourt LGA is located in Trans Amadi area (Udo, 1970; Williams, 2008). In addition, two focus group discussions (FGDs), involving thirty conveniently selected persons Akuku-toru local government area (AKULGA), on the from communities in the two LGA’s, was also other hand, is a riverine area in Rivers State created on conducted so as to elicit supplementary qualitative the 29th of September 1991 from Degema Local information on the subject of interest. The Government area by the Ibrahim Babangida’s regime. sampling process also ensured that diverse The LGA shares borders with Degema LGA, the elements of the population in the selected study Atlantic Ocean, Asari-toru LGA, and Nembe LGA of areas, such as gender, marital status, occupations, Bayelsa State. Akuku-toru has a total land area of 1,443 etc, were well represented. km2 and an estimated population of 226,300 from a population of 102,169 as of 2006 (Brinkhoff, 2017). Table 4.3 shows the distribution of the sample size The Local Government area consists of seven major in the selected areas for this study. communities, namely Abonnema, Obonoma, Kula, Idama, Abissa, Soku and Elem-Sangama, as well as other smaller communities and settlements, such as

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 Table 4.3.1(a): Sample size of the study per Local Government area

Selected LGA’ s Frequency Per cent Valid P ercent

Akuku-Toru 50 50.0 50.0

Port Harcourt city 50 50.0 50.0

Total 100 100.0 100.0

Source: Fieldwork, January 2 019

4.3.2 Method of Data collection This study relied on two major sources of data namely frequency tables, charts and graphs. primary sources of data and secondary sources; and both yielded rich quantitative and qualitative The qualitative data collected for this study is simply information. transcribed verbatim. Transcription is a practice central to qualitative research, and is seen as essential here The primary data was generated through the use of a especially as it helps the study identify the natural self-completion questionnaire which was carefully expressions of the respondents on the issues under designed along the framework for this study. study.

The consideration for relying on the use of questionnaires to collect quantitative data for this study 4.4 Data presentation and Analysis is largely based on its guarantee of anonymity which 4.4.1 Socio-Demographic Characteristics of Respondents encouraged the respondents to provide candid In order to ensure that diverse constituents of the responses. FGDs and special interviews were also society are well represented, this study included adult conducted to elicit qualitative information from the males and females from the selected areas of the study. respondents, particularly on their perceptions, knowledge and analysis of the existence, use and Table 4.4.1(a) shows that 72% of the respondents are access to the 13% derivation funds in their local males, while the remaining 28% are females. Most of government area. the respondents, as indicated in Table 4.4.1(b), are between the ages of 18 – 65 years (77%), the remaining 23 (27%) were 65 years and above. The choice of these instruments was informed by the fact that it effectively provided rich insight, beyond This implies that the respondents are grown-up and numbers and statistics, into what the community largely knowledgeable and conversant with the range members in the study area feel about the range of issues of issues covered by this study. under study.

4.3.3 Method of Data analysis Data for this study was analyzed using descriptive statistics which includes frequency tables, simple percentages, graphs and charts.

The socio-demographic distribution of the respondents is presented on a frequency and percentage tables while the responses to the research questions are presented and analyzed using

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 Table 4.4.1(a): Gender distribution of Respondents

Local Government Area

Gender of Respondent Akuku-T oru Port Harcourt City Total

Male 36 36 72

Female 14 14 28

Total 50 50 100

Source: Fieldwork, January 2019.

Table 4.4.1(b) shows that 30% (n=15) of the fall within the age bracket of 18 – 35 years, with another respondents from Akuku-toru were within the age 19 who are above 35 to 65 years making up 38% of the bracket of 18 – 35 years, another 38% (n=19) fall sample size, while the remaining 14% (n=7) were 65 within the age bracket of 35 – 65 years, while the years of age and above. remaining 32% (n=16) were 65 years and above. The chart in Figure 4.4.1(1) presents a graphic In Port Harcourt LGA, 48% (n=24) of the respondents description of the age categories in the study sample.

Table 4.4.1(a): Gender distribution of Respondents

Local Government Area

Age of Respondents Akuku-Toru Port Harcourt City Total

18 to less than 35 year s 15 24 39

35 to less than 65 years 19 19 38

65 and above years 16 7 23

Total 50 50 100

Source: Fieldwork, January 2019.

25

20

15

10

5

18 less than 35 years 35 to less than 65 years 65 and above years Local Government Area Akuku-Toru Port Harcout City

Figure 4.4.1(1): Age distribution of respondents in study Areas. Source: Fieldwork, January 2019

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 Majority of the respondents, as indicated in Table completed only secondary school education, while 4.4.1©, have attained one form of formal education or only 4 of the respondents or 4% had no form of formal the other, which certainly further informed their education. participation in this study. This shows a high literacy level which stands as an For instance, as high as 80% (n=37, n=43, Akuku-toru advantage to this study, especially as the educational and Port Harcourt respectively) of the respondents status of the respondents impacts on their have qualifications above secondary education; 8% understanding as well as their responses to the issues (n=6, n=2, Akuku-toru and Port Harcourt respectively) under study.

Table 4.4.1 (c ) : Educational Attainment of Respondents

Local Government Area

Educaonal Aainmen t Akuku-Toru P.H City Total Valid Percent

No School 2 2 4 4

Completed Primary 1 0 1 1

Secondary Completed 6 2 8 8

Above Secondary 37 43 80 80

Others 3 3 6 6

No Response 1 0 1 1

Total 50 50 100 100

Source: Fieldwork, January 2019.

Data in Table 4.4.1(d) shows that the respondents who Harcourt=36%), indicating married as their present participated in this study were mostly married, with status; while others were single (32%) and divorced 67% of the population, (Akuku-toru=31% and Port (1%).

Table 4.4.1(d): Marital Status of Respondents

Local Governmen t Area

Marital Status Akuku-Toru Port Harcourt city Total

Single 19 13 32

Married 31 36 67

Divorced 0 1 1

Total 50 50 100

Source: Fieldwork, January 2019.

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 The survey also revealed, as shown in Table 4.4.1(e), a large percentage of the respondents are civil servants that most of the respondents were either civil servants who depend on the government for monthly income to (37%) or private sector employees (21%). meet their personal and household needs.

7% of the respondents are involved in farming/fishing, Other significant groupings here are the respondents 4% are contractors, 12% are self employed in one form who work in the private sector and those who are self of trade or the other, 3% were unemployed, 2% had no employed in trade. It is noted in this study that the sort of profession, while the remaining 11% are income and sustainability of the jobs of these groupings involved in other kinds of jobs such as apprenticeship, respond largely to political and economic policies that or are retired from their jobs. What this suggests is that affect the people as well as businesses.

Table 4.4.1(c ): Educational Attainment of Respondents

Local Government Area

Akuku-Toru Ogbia Total Percent Profession of Respondents No Profession 0 2 2

2.0

Civil Servant 16 21 37 37.0

Private Sector Employee 9 12 21 21.0

Farming/ Fishing 7 0 7 7.0

Contractor 4 0 4 4.0

Self Employed in Trade 6 6 12 12.0

Student 2 1 3 3.0

Unemployed 2 1 3 3.0

Others 4 7 11 11.0

Total 50 50 100 100.0

Source: Fieldwork, January 2019.

The study, as shown in Table 4.4.1(f), also surveyed started working between 1991 and 2000, while 3% when the respondents started work and found out that (n=3) started working between 1960 and 1990. most of them, (n=52, 52%), started working in 2011. The remaining 5% (n=5) provide no response as to Another 31 (31%) started working between 2001 and when they started work in their current employment. 2010; 9% (n=9)

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 Table 4.4.1(f): The Period the respondents started work at their current employment

Years in Service Frequency Percent Valid Percent

1960 to 1970 1 1.0 1.0

1971 to 1980 1 1.0 1.0

1981 to 1990 1 1.0 1.0

1991 to 2000 9 9.0 9.0

2001 to 2010 31 31.0 31.0

2011 to Date 52 52.0 52.0

No Response 5 5.0 5.0

Total 100 100.0 100.0

Source: Fieldwork, January 2 019

Table 4.4.1(g) below shows the number of dependants 91% of the respondents (n=45 and n=46, Akuku-toru in the household of the respondents. and Port Harcourt respectively) have 0 to less than 10 persons depending on them, another 6% of the This statistic is important particularly as it has respondents have 10 to less than 20 persons depending implications for the economic capabilities and the life on them, while the remaining 3% have 20 and above chances of the respondents. The survey revealed that persons depending on them.

Table 4.4.1(g): Number of dependants in the household of the Respondents

Number of People Local Government Area Depending on Akuku-Toru Port Harcourt City Respondent Total

0 to less than 10 45 46 91

10 to less than 20 3 3 6

20 and abov e 2 1 3

Total 50 50 100

Source: Fieldwork, Januar y 2019.

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 Alternative sources of income of the respondents were occasional transfers (1%), as well as from other also examined to know how the respondents cope with sources, (12%), such as from friends and family their needs as well as that of their dependants. members, loan interests, contributions, and others.

Table 4.4.1(h) shows that 40% of the respondents have The remaining 60% did not indicate that they have alternative sources of income largely from occasional alternative/secondary sources of income. businesses (24%), personal transfers (3%), and Table 4.4.1(h): Secondary sources of Income of Respondents Do Respondents Have Secondary/alternave Sources of Income?

Frequency Percent Valid Percent Public Transport Facilies Yes 40 40.0 40.0

No 60 60.0 60.0 Tot al 100 100.0 100.0 If Yes, How?

Occasional Business 24 24.0 24.0 Personal Trans fers 3 3.0 3.0 Occasional Transfers 1 1.0 1.0

No Response 60 60.0 60.0

Others 12 12.0 12.0

Total 100 100.0 100.0 Source: Fieldw ork, January 2019.

4.4.2 Social Amenities and Settlement patterns in the selected Local Government Areas The study surveyed the availability of social of assessing the socio-economic status of persons amenities such as electricity, potable water, in the study sample. In terms of the provision of education services, transport services, health care electricity, 86% (n=86) of the respondents, as and employment opportunities as provided by the shown in Figure 4.4.2(1), indicated that there is state government and local government. electricity supply in their communities, while 14% The study also inquired from the respondents the (n=14) indicated that there is no electricity supply various settlement patterns in the locality as a way in their communities.

Figure 4.4.2(1) Electricity supply in Respondents communities. Source: Fieldwork, January 2019

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 For 14% (n=14) of the respondents, electricity supply is area. Only 11% of the respondents in the LGA’s have very irregular in their community, 52% of the indicated that electricity supply in their community is respondents also indicated that electricity supply is very regular (See Table 4.4.2[a]). This information is somewhat irregular in their own area, while 23% also important for this study as it points to the amount agreed that electricity supply is fairly regular in their of social facilities accessible to the people as citizens

Table 4.4.2(a): Regularity of Electricity in Respondent's Community

Valid Frequency Percent Valid Percent

Very Irregular 14 14.0 14.0

Somewhat Irregular 52 52.0 52.0

Somewhat Regular 23 23.0 23.0

Very Regular 11 11.0 11.0

Total 100 100.0 100.0

Source: Fieldwork, January 2019.

The respondents, in Figure 4.4.2(2), attributed the in some cases, the absence of transformers (1%). Only challenges of electricity supply in the local government 4% (n=4) of the respondents indicated that there is areas to no supply of electricity (39%), absence of constant supply of electricity in their own areas. electric poles (3%), presence of companies (2%), and

Figure 4.4.2(2) Reasons for absence of Electricity in the LGA’s. Source: Fieldwork, January 2019

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 An assessment of the sources of lighting for made lamps and rechargeable lanterns. This shows that respondents in the selected LGA’s, as shown in Table whereas many persons in the selected study area 4.4.2(b) below, revealed that 48% of the respondents depend on Electricity Distribution Company for power, depend on Electricity Distribution Companies for a large number in the various communities of the Local power supply, others, 41%, indicated that they rely on Government areas provide their own power using personal generators, 6% depend on community personal generators and lamps, while some persons generators, while the remaining 5% depend on locally rely on community generators.

Table 4.4.2(b): Sources of lighting for Respondents in selected areas Local Government Area Akuku-Toru

Source of Lighng for Respondents P.H City Valid Percent

Distribuon Company 21 27 48

Personal Generator 20 21 41

Community Generator 4 2 6

Lamp 5 0 5

Total 50 50 100

Source: Fieldwork, January 2019.

On assessing whether the government at any level indicated that potable water is not available in their provides clean and accessible water to the communities communities, while only 23% of the respondents in the selected LGA’s, the study revealed that a large indicated that potable water is available and accessible percentage of persons in the communities do not have in their area. access to potable water. Of the 50 respondents in Akuku-toru LGA, 39 Water is a fundamental human need with various basic indicated that they do not have access to clean water, and complimentary uses such as hydration, food likewise in Port Harcourt LGA where 38 out of the 50 production and sanitation; and this is why its respondents indicated that potable water existed in unavailability shows how much the State Government their communities, however, in recent times, it has been is interested in the safety and healthiness of its people. unavailable. In Figure 4.4.2(3) below, 77% of the respondents

Figure 2.4.1(b) Alternative sources of income of Respondnets. Source: Fieldwork, January 2019.

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 The respondents further indicated that much of the pipe Another 16% of the respondents indicated that the pipe borne water available for domestic use in the area is borne water in their own area is somewhat potable, mostly not potable. while the remaining 15% of the study sample indicated Table 4.4.2(c ) shows that 69% of the respondents that pipe borne water in their area is potable. indicated that the pipe borne water in their communities are not potable which encourages people This corroborates the information in Figure 4.4.2(3) to install personal boreholes and wells. where a large percentage of the respondents indicated that there is no potable water in their communities.

Table 4.4.2(c ): Respondents rating of Pipe Borne Water in the selected areas

Local Government Ar ea Rang of Pipe Borne Water in responden ts Ogbia Tot al Valid Per cent Communies Yenagoa

Potable 7 8 15 15.0

Somewhat Potable 6 10 16 16.0

Not Potable 37 32 69 69.0

Total 50 50 100 100.0

Source: Fieldwork, January 2019.

In Table 4.4.2(d), while 69% (n=69) of the respondents indicated that a number of communities like Soku, indicated that there is some level of health care services Abonnema and Kula have very poor health care in their area, 31% (n=31) indicated that unavailability services, and in some others, none at all, which of health care services have been one of the major normally drives users to patronize traditional challenges in their community. alternatives and private health delivery centres. For instance, respondents (n=22) in Akuku-toru LGA

Table 4.4.2(d): Respondents rating of Health Delivery services in selected LGA’s

Local Government Area

Port Harcourt city Health Delivery Akuku-Toru Total

Yes 28 41 69

No 22 9 31

Total 50 50 100

Source: Fieldwork, January 2019.

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 In Port Harcourt LGA also, some respondents (n=9) Harcourt environs, a number of them remain noted that whereas health delivery is available in Port dysfunctional and ill-equipped (See Figure 4.4.2[4]).

Figure 4.4.2(4): Health Services in selected LGA’s Source: Fieldwork, January 2019

The availability of other essential social services, such the LGA’s were also identified as one of the lacking as public transport facilities, education facilities and essential social services in the LGA’s. 77% of the employment opportunities in the various communities respondents indicated that this very important social of the selected LGA’s, was also surveyed. Table amenity which facilitates movement, business and 4.4.2(e) shows a cross-tabulation of the responses of other aspects of the economy is seriously lacking in respondents in Akuku-toru and Port Harcourt LGA’s. their communities.

On the availability and access to transport facilities, Of all the highlighted social services, only education 86% of the respondents expressed that there are no was generally acknowledged as available in the LGA’s, public transport facilities, while the remaining 14% however with a number of deficiencies. For instance, indicated that there are a few public transport facilities, 64% of the respondents noted that while primary and especially in Port Harcourt city, however most of them secondary education facilities are available in their are now dilapidated and inadequate to meet the needs of LGA, Higher schools as well as Universities are non- the growing population. Employment opportunities in existent in their neighbourhood.

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 Table 4.4.2(e): Availability of Transport facilities and other Social services in the selected LGA’s Local Government Area

Akuku-Toru Port Harcourt city Facilies/Services Total Yes 7 7 14 No 43 43 86

Total 50 50 100

Em ployment Opportunies

Yes 7 16 23

No 43 34 77 Tot al 50 50 100 Educ aon facilies services

Primary Yes 41 48 89

No 9 2 11

Total 50 50 100

Secondary Yes 37 45 82

No 13 5 18

Tot al 50 50 100

Higher School Yes 4 30 34 No 46 20 66

Tot al 50 50 100

University Yes 3 33 36 No 47 17 64

Tot al 50 50 100

Source: Fieldwork, January 2019.

Data on the residential housing patterns of the This information is important for this study particularly respondents in Table 4.4.2(f) shows that most of the as it reveals the distribution of income level in the respondents live in rented apartments (47%) and selected LGA’s and how it affects the housing bungalows (28%). Very few of the respondents live in conditions and settlement patterns of the respondents. duplexes (3%) and detached apartments (1%); Another It also shows that housing policies are not effective in 10% live in traditional rooming arrangements, 3% of dealing with housing issues in the selected LGA’s, the respondents share an apartment with friends, while especially as a number of persons still live in batchers, 5% live in other kinds of housing arrangements such as trailers, tankers, containers and traditional mud houses, batchers, tents, trailers, and container houses asides those who pay exorbitant fees for their rented constructed out of shipping container materials. apartments.

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 Table 4.4.2(f): Residential Housing patterns in selected LGA’s

Local Government Area

Port Harcourt city Housing Arrangemen t Akuku-T oru Total Tradional 7 3 10

Rented Apartmen t 21 26 47

Bungalow 13 15 28

Semi-Detached 1 1 2

Detached 1 0 1

Sharing a Room with Friend 2 1 3

Duplex 1 2 3

Others 4 1 5

No Response 0 1 1

Total 50 50 100

Source: Fieldwork, January 2019.

Respondents also expressed their perception of possible efforts to ensure a better life for the people. government’s ability to provide social services for the The implication of this is that many persons perceive populace. In Figure 4.4.2(5), 83% of the respondents government as unable to provide social services indicated that the government lacks the capacity in essential to the people. As noted by Ripstein (2004) and terms of social services provision. The respondents Rice & Patrick (2008), one of the key functions of indicated that: failure of government (47%), corruption government is to ensure effectiveness of public (29%), and inequality in government (6%) are major institutions in their performance of various functions, challenges of governance and the provision of basic such as service delivery and social protection systems. amenities by the State (See Table 4.4.2[g]). When these essential social services are not available Only 17% of the respondents held that the government or deficient, then the people begin to perceive the is good in terms of providing social services, noting government as ineffective. that the government, at the various levels, is making all

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 Figure 4.4.2(5): Government’s ability to provide social services. Source: Fieldwork, January 2019

Table 4.4.2(g): Reasons for government’s inability to provide social services in selected LGA’s

Local Government Area Akuku-Toru Port Har court Tot al

Inequality of the Government 2 4 6 Reason for

Responden t Opinion of Bad Government 24 23 47 Performance of Government in No Reason 8 5 13

Terms of Social Corrupon 15 14 29 Services Provision Good Governance 1 4 5

Tot al 50 50 100

Source: Field Survey in Delta State, 2019

4.4.3 Respondents knowledge on 13% Derivation Fund in the selected Local Government Areas Discussions surrounding the justification and allocation from Oil revenues points to the fact that the relevance of the 13% derivation fund have revealed a public may not be aware of the or 13% derivation as number of ambiguities in its significance, disbursement well as its objective. and utilization. This study thus investigated how much members of the The 13% derivation fund, as acknowledged in section selected LGA’s know about the derivation funds. 162[2] of the 1999 constitution, was largely implemented to cushion the effects of the devastations In Figure 4.4.3(1), it is revealed that many of the of oil exploration as well as to recompense Oil respondents, 94% of the study sample, are aware of the producing communities for divesting them of their fact that the 13% derivation fund is a percentage from proprietary right. Crude Oil paid to States in direct proportion to the amount of mineral resources extracted from their The persistent agitations for development in the Oil communities. rich Niger Delta and the recurrent request for increased

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 50 40

30

20

10

0

True False

Local Government Area Akuku-Toru Port Harcout City

Figure 4.4.3(1): Knowledge on reasons for 13% derivation funds. Source: Fieldwork, January 2019

While some of the respondents agreed that the 13% Federal Government to stop paying the 13% derivation derivation fund was routed through the State fund to the State Government and instead remit it Government for administrative purposes only, majority directly to the communities concerned (See Table (n=41, n=34; Akuku-toru and Port Harcourt 4.4.3[a]). respectively) noted that there is the urgent need for the

Table 2.4.2(g): Is the Government Good in terms of Social Services Provision?

Local Government Area

Akuku-Toru Port Harcourt city Total

Should the Communies be Fund Yes 0 34 75 Directly? No 50 16 25

Total 50 50 100

Source: Fieldwork, January 2019.

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 Some of the reasons given as to why concerned that despite the enormous wealth occasioned by communities should have direct access to the 13% the existence of Crude Oil in the Niger Delta derivation fund accruable to them are that: non- region, the people of the region have been accountability and misappropriation of the subjected to indescribable hardship through derivation has become endemic among State alienation, impoverishment, high cost of living Government (91%), the 13% derivation fund created by the petroeconomy, unchecked remains largely unnoticed in the Oil bearing environmental pollution and degradation resulting communities in terms of facilities and in the destruction of the peoples sources of development (92%), and above all, the 13% livelihood. derivation fund is not part of the consolidated revenue of any tier of Government (88%). All of This, as noted by Joab-Peterside, Porter and Watts these, as indicated by the respondents, creates lack (2012) and Naanen (2015), also explains why of faith and a significant disconnect between the there is a persistent insurgency in the region State Government and Oil bearing communities especially in the face of recurrent resurgence of (92%), hence, the continuous agitation for armed ethnic militias who reject the authority and Resource control in the Region since the discovery legitimacy of the Federal and State government, of Oil in the region (See Table 4.4.3[b]). operate outside the effective control of traditional governance institutions, resist perceived State This corroborates the arguments of Jinadu, et al. violence and brutality, and give militant muscle to (2007); Joab-Peterside (2007) and Ako (2012), the demand for absolute resource control.

Table 4.4.3(b): Why affected communities should control the 13% derivation funds

Local Government Area

Akuku-Toru P.H City Total

Non-accountability & Misappropriaon has Yes 50 41 91

become Endemic among State Government No 0 9 9

Total 50 50 100

13% Derivaon Fund Remains Largely Unnoced Yes 50 42 92 in the Oil Bearing Communies. No 0 8 8 Total 50 50 100

The 13% Derivaon Fund is not Part of the Yes 48 40 88

Consolidated Revenue of any Tier of Government No 2 10 12

Total 50 50 100

Source: Fieldwork, January 2019.

4.4.2 Social Amenities and Settlement patterns in the selected Local Government Area One of the key interests of this study is to various communities in Rivers State, and if there is investigate if the administrations of the selected the felt presence of government in communities Niger Delta States have been able to stimulate and neighbourhoods in the selected LGA’s, development through the provisions of the 13% especially in terms of development projects, derivation funds. agriculture development, welfare programmes, assistances to small-scale businesses, and others. The study here surveyed the perception of respondents on the existence of institutions or agencies specially created to receive and administer the derivation funds accruable to the

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 Figure 4.4.4(1): Any 13% Derivation Agency in Rivers State? Source: Fieldwork, January 2019

As shown in Figure 4.4.4(1), 86% of the respondents, whereas Rivers State does not have any agency (n=42, n=44; Akuku-toru and Port Harcourt specifically created for this purpose; there are some respectively), confirmed that there are no institutions or recognized institutions in the State, such as the Niger agencies established in the State by Law to receive and Delta Development Commission (ND DC) and the administer the 13% Oil Derivation accruing to Ministry of Niger Delta Affairs (MNDA), that perform concerned communities. functions close to that of the disbursement of the 13% derivation fund. The remaining 14% of the study sample indicated that

The respondents further noted that whereas agencies such as the NDDC and MNDA were created around the administration of Oil resources, they were not necessarily mandated to manage and disburse the 13% derivation fund to Oil producing communities in the State. Rivers State had something seemingly… that is a caricature of an As some of the respondents noted, the only establishment that had the semblance of an agency ‘oil producing area development’ dedicated to meeting the development needs of Oil agency in RSSDA,” created during producing communities in the State was the Rivers Rotimi Amaechi’s time. However, State Sustainable Development Agency (RSSDA); however, the activities of RSSDA, more or less, had unlike commissions such as little or no significant impact on Oil bearing EDOSOPADEC and DESOPADEC, communities. all that RSSDA could do is some sort As some of the respondents of the study had noted: of agricultural development, send Rivers State Sustainable Development Agency is an agency of the Government of Rivers State fashioned connected persons overseas on after the Rivers State Sustainable Development scholarship and organize a couple of Program (RSSDP) of the Federal Government as a strategic initiative to promote programmes and youth workshops! In the end the activities that will bring about youth development in agency wasted a lot of resources and the State and also eradicate poverty, especially in the is now dilapidated rural areas. The agency, as noted by Mitee (2010) and Gahia (2017), was created under the Sustainable Development Agency Law No. 3 in 2007 with the

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 specific mandate to: Available records also showed that RSSDA included 1. Evaluate and assess existing and future social development and education in the State in its interventionprogrammes in the sustainable aims. As noted by Gahia (2017), the Rivers State development sector through the acquisition, Government through RSSDA invested immensely in warehousing and analysis of development and socio- scholarship awards, trainings and workshops, economic data. community health, harnessing of information technology (ICT), and the supply of instructional 2. Formulate and implement plans, initiatives, materials to schools. RSSDA awarded between 2007 strategies, intervention modes and specific measures to and 2010 a total of 1,120 overseas and 135 local achieve sustainable development, capacity- scholarships which amounted to over N4, building, skill acquisition, alternative sources of 377,767,926.69. livelihood in an environmentally sustainable manner. Whereas the aim and objectives behind the 3. Collaborate with the government, including local establishment of RSSDA is well intended, it has been government councils, communities, international noted by scholars and policy analysts that RSSDA’s development agencies and the private sector with the efforts to fast-track development in the State and aim at entrenching a sustainable development address the rising problems of unemployment have agenda for the state. made rather insignificant impacts.

The agency focused on promoting human capital In addition, the RSSDA was not essentially created to development, including skill acquisition; executing address the challenges of Oil bearing communities in sustainable projects and programmes in community the State, neither was it funded with the derivation health, water and sanitation across the State. It also funds accruing to the affected communities. As tried to develop ” Rivers State had something Henshaw, Malo, Dafe & Bassey (2017) had noted, the seemingly… that is a caricature of an ‘oil producing RSSDA, though established as a strategic initiative of area development’ agency in RSSDA, created during the Rivers State Government to intensify development Rotimi Amaechi’s time. However, unlike commissions efforts in the areas of poverty alleviation, grassroots such as EDOSOPADEC and DESOPADEC, all that development and youth empowerment in the State, did RSSDA could do is some sort of agricultural not particularly focus on meeting the development development, send connected persons overseas on needs of Oil producing communities, rather the agency, scholarship and organize a couple of youth workshops! in its brief period of existence, only tried to diversify In the end the agency wasted a lot of resources and is the economy of the State and engender sustainable now dilapidated alternative sources of livelihood in the development in its parts by executing sustainable State via agriculture. Records of the Rivers State projects and programmes especially in community Government showed that RSSDA invested as much as health, water and sanitation, as well as developing N2, 141,160,287 on agro and agro-allied projects in alternative sources of livelihood. 2007-2010 (Gahia, 2017).

Table 4.4.4(a): Respondents awareness of Government’s presence in the selected LGA’s

Local Governmen t Area

Akuku -Toru Port Harcourt city Total

Government Presence in Yes 22 26 46

Community of Respondents No 28 24 54

Total 50 50 100

Source: Fieldwork, January 2019.

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 On whether there is the presence of government in unsatisfactory, especially in areas of employment communities of the selected local government areas, opportunities for the local populace, youth 46% of the respondents agreed that there is some development, welfare programmes for communities, presence of government in their communities, while agricultural development, opportunities and the remaining 54% indicated that the presence of assistances for small-scale and medium businesses, government is largely not felt in their neighbourhoods and others. For instance, 58% of the respondents, as (See Table 4.4.4[a]). shown in Figure 4.4.4(2), indicated that the Rivers State Government have performed unsatisfactorily in For most of the respondents, although the State terms of providing essential infrastructure such as Government have been able to establish social facilities durable road networks, efficient public transportation and development projects in some parts of the State, the systems, and others. performance of the State in terms of meeting the needs Also and aspirations of the populace remain rather

40

30

20

10

0 Very Unsasfactory Sasfactory Don t Know Very Sasfatory Uncertain Local Government Area Akuku-Toru Port Harcout City

Figure 4.4.4(2): Level of providing Infrastructure by State. Source: Fieldwork, January 2019

Also in Figure 4.4.4(3), majority of the respondents, resources coming into the State. This also confirms the 62% as against 9%, indicated that the government at the information on Table 4.4.4(a) that the presence of State and Local level have performed inadequately in government is not significantly felt in the various terms of providing employment of job opportunities for communities in Rivers State. indigenes of host communities despite the enormous

Figure 4.4.4(3): Work opportunities for of host communities. Source: Fieldwork, January 2019

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 The present administration was also rated very low by lack social services, inadequate infrastructure, and an overwhelming majority of the respondents mainly in poor health care delivery services remain recurrent in areas of youth development, women development, the State; another 29% indicated they were somewhat housing schemes, aiding small-scale businesses, and displeased with the overall performance of the State. improving the standard of living in the State. 8% of the respondents were neither pleased nor displeased, while 3% indicated that they were pleased Many of the respondents (48%), as shown in Figure with the performance of the State in fulfilling its pledge 4.4.4(4), noted that they were very displeased with the to the people. current administration especially on issues such as of

Figure 4.4.4(4): Satisfaction with performance of the State. Source: Fieldwork, January 2019

A cursory look at the perceptions of the respondents on Others, (44%), were of the opinion that social services the impact of the present administration on are most paramount for the State ahead of other needs communities in the State will reveal that a lot is left to such as employment and infrastructure. be desired in terms of infrastructural development. Most of the respondents (45%), as shown in Table The remaining 11% of the study sample argue that 4.4.4(b), have identified employment, social services infrastructure provides ease to all other needs; hence and infrastructure as the most critical needs in the State. the State should focus on building infrastructure.

Table 4.4.4(b): Three (3) major Respondents expectations from State Government

Local Government Area

Akuku-Toru P.H City Needs Total Social Services (Healthcare, Portable Water etc), 22 22 44 Employment and Infrastructure

Employment, 23 22 45 Social Services and Infrastructure

Infrastructure, 5 6 11

Employment and Social Services 50 50 100

Source: Fieldwork, January 2019.

4.4.5 Perception of Respondents on how to manage the 13% Derivation fund

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 Considering the plethora of issues stemming the sample prefers a direct payment to, and absolute formula and indices for the 13% derivation funds and control of the derivation fund to Oil producing the apparent displeasure of some communities with the communities, especially in the face of the way and manner governments of the oil and gas undemocratic methods and the high level improbity of producing States manage the derivation funds paid to the State in the use of the funds. In contrast, 24% (n=24) them, this study also surveyed the perceptions of the of the respondents are of the opinion that only the State respondents on how the derivations funds optimally can judiciously manage the disbursement of the managed to the advantage of Oil bearing communities. derivation funds without rancour and intergroup contestations, as will be found amongst the Firstly, the study sought to investigate how people feel communities if left to manage funds accruable to them, about the access and management of the 13% hence, the funds should be paid directly to the State derivation funds by the Oil producing communities. governments. Figure 4.4.5(1) shows that 67% (n=67) of the study

Figure 4.4.5(1): Disburse directly to Oil producing communities. Source: Fieldwork, January 2019 Some of the respondents who were of the opinion that including non-Oil producing areas, a sharing formula Oil producing communities should have direct access of 75:25 can be adopted. In this sharing formula, Oil and absolute control of the derivation funds also producing communities should 75% of the derivation indicated that as an alternative, and considering the funds accruable to the State, while the State need for State governments to augment State revenue Government gets 25% which would be devoted to in other to meet with the needs of other parts of the State developing other parts of the State.

Figure 4.4.5(1): Disburse directly to Oil producing communities. Source: Fieldwork, January 2019

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 The study also surveyed the perception of the respondents on the creation of a fund management board for better governance of the 13% derivation fund. As shown in Figure 4.4.5(2), 88% of the respondents advocate for a creation of a 13% derivation fund board made up of members of the Oil producing One solution is to set up a communities, representatives of the State and Federal commission to specially manage Government. As noted by some of the respondents: t h e d e r i v a t i o n f u n d s f o r The calls for a separate agency to manage the affairs of developme”nt. The c ommission oil producing communities are on the heels of the should render quarterly accounts to perceived failure of State Governments to utilize the the people of Rivers State. Three, derivation fund for its original purpose of ameliorating the negative effects of oil production on the people and the mandate of that commission will the environment. For instance, Rivers State alone have be to use, transparently, the 13% for received not less than N1,095,916,755,400.9 between the development of Oil bearing 1999 and 2014 as 13% derivation funds yet, not much, as noted by Abdallah (2014) and Okotoni & Adesanmi communities and other affected (2018), can be accounted for in terms of development neighbouring communities where as social and economic amenities in the region remain the Oil activities extend to grossly inadequate and several of them are at the verge of collapse where they still exist.

Table 4.4.5(a): Summary of 13% Derivation fund received by some Niger Delta States (1999-2014)

Year Akwa Ibom State Bayelsa State Delta State Rivers State Total (N)

1999 655,838,491.47 541,423,270.34 892,701,310.42 541,423,270.34 2,631,386,342.57

2000 13,051,938,149.71 10,772,430,539.25 27,765,813,337 10,772,430,539.25 62,362,612,565.21

2001 16,893,104,657.73 13,942,679,318.60 32,994,267,315.04 13,942,679,318.87 77,772,730,610.24

2002 8,269,258,481.25 19,315,385,253.68 33,088,546,074.40 47,688,286,331.70 108,361,476,141.03

2003 22,079,886,639.92 28,143,842,819.88 49,517,399,383.32 30,310,391,518.44 130,051,520,361.56

2004 40,115,374,131.73 52,521,949,117.20 52,681,112,484.05 44,532,681,992.09 189,851,117,725.07

2005 52,905,615,322.58 75,542,600,172.45 54,460,243,567.44 63,945,113,810.36 246,853,572,872.83

2006 55,802,664,919.41 75,637,359,090.91 81,626,448,600.71 79,544,506,583.97 292,610,979,195

2007 81,454,009,057.39 50,801,660,607.31 71,653,596,919.20 121,590,007,746.20 325,499,274,330.1

2008 90,219,765,068.06 66,337,935,444.72 79,550,568,781.96 138,204,841,258.72 374,313,110,553.46

2009 67,645,563,787.43 30,585,358,394.09 86,090,582,965.31 58,427,055,015.74 242,748,560,162.57

2010 111,423,789,255.71 69,968,091,810.34 104,413,061,847.14 102,279,437,781.28 388,084,380,694.47

2011 132,482,675,674.63 104,383,343,811.90 123,287,167,869.75 124,470,503,433.38 484,623,690,789.66

2012 150,911,808,444.90 103,837,214,767.39 129,026,966,394.64 107,190,487,222.01 490,966,476,828.94

2013 170,958,056,312.59 110,078,357,382.93 120,237,274,310.29 107,154,140,157.84 508,427,828,163.65

2014 64,761,228,017.11 43,740,328,012.91 57,834,409,331.25 45,322,769,420.75 211,658,734,782.02 Total 1,079,630,576,411. 856,149,959,813.9 1,105,120,160,491. 1,095,916,755,400. 4,136,817,452,118.3

Source: 13% Derivation funds of Niger Delta States from 1999 – 2014, Okotoni & Adesanmi (2018)

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 4.5 Discussion of ndings has, in the last fifteen years till date gotten more than N1 trillion as thirteen percent derivation funds; have not been able to translate the huge amount derived into The development challenges and the various hazards meaningful socio-economic development in the State communities and people of Oil-producing areas in the as well as in that of concerned Oil-bearing Niger Delta region face has over the years generated communities. serious concerns and, like on most cases, resulting in agitations and the phenomenon of persistent Majority of the respondents noted that, although the insurgency. various State administrations in the history of the State have initiated one form of infrastructural development Whereas the Niger Delta region is considered the or the other, essential social amenities such as potable economic backbone of the country, poor infrastructure, water, electricity, housing, public transportation, excruciating poverty, environmental degradation and quality road and rail networks, health delivery, lack of basic amenities has remained a familiar identity employment opportunities and others, have remained of most of its communities. Scholars, such as Aluko critically lacking in the State, especially in view of the (2001), Ibaba (2001), Aaron (2006) and Okoronkwo & humongous amounts of money received by the State Ezeh (2012), have noted that the Niger Delta region government as derivation funds. As noted by Guardian which is the fulcrum of Nigeria’s Oil resources and (2018) since 1999, successive governors of Rivers economic wealth can only be described with the full State have all claimed to have spent hundreds of meaning of the absurdity of its impoverishment and billions on infrastructural development; from lack. Currently, vital sectors such as education, health, independent Power Projects to road projects to hospital electricity supply, pipe borne water and job and healthcare centres to city modernization projects opportunities are seriously lacking in most of its areas, and so on. Yet, Rivers State cannot be mentioned in the especially the Oil-producing communities in the comity of developed states in Nigeria. region. Rivers State, like many other states in the country, The Nigerian State, in response to these challenges, continues to suffer horribly from epileptic electricity have introduced various strategies including the supply in spite of the fact that more than N200 billion creation of special agencies, commissions and a has been sunk into a Rivers State Independent Power ministry to Project which was eventually sold out to investors. In supervise the development of the Niger Delta region, as terms of road networks and transportation, Rivers State well as the allocation of revenues and funds to aid the will find it difficult to boast of having the best network process. of roads in spite of the fact that almost more than a trillion naira has been sunk into road construction in the This study investigated the issues related to such State. revenues, particularly the utilization of the thirteen percent derivation fund accruable to Oil-bearing Medical facilities and healthcare is also backward in communities in Rivers State, which has, over the years, the state since 1999, while the State’s educational remained central to the development question in the system remains at a disadvantaged state in spite of the Niger Delta region of Nigeria. fact that hundreds of billions of naira that have been pumped into the educational sector since 1999. The study employed a cross-sectional survey design involving 100 respondents and 30 focus group The study also revealed that an overwhelming number participants purposively selected from communities in of the respondents perceive the current State Akuku-toru and Port Harcourt Local Government administration as unable to effectively deploy the funds Areas of Rivers State. For data collection, the study accruable to the State for sustainable development. relied on primary data and also on secondary data to Much of this perception, as noted by majority of the complement the information gotten from the respondents, is connected to the fact that the present respondents through questionnaires, special interviews administration has not been able to significantly and focus group discussions. improve on the welfare and wellbeing of the people despite the funds accruing to the State. Fiscal Allocation Disbursement Audit-2012-2016 showed that Rivers State reliance on mineral revenue is Although the State has created some Public Private 73%(. Rivers State was also the only state with Mineral Partnership (PPP) initiatives in the Greater Port Revenue accounting for over 84% in 2014 of its total Harcourt City Development Authority, (GPHCDA) revenue between 2012-2016(NEITI, 2019). Whereas intended to address housing deficit in the State, and the Rivers State Government claims to have have also embarked on several capital intensive judiciously applied its resources and allocations to projects such as the dualization of the Sakpenwa-Bori developing communities in the State, data available to Road, the construction of the Ogoni-Andoni-Opobo this study revealed that Rivers State being one of the Unity Road and the Abonnema Ring Road, all of which beneficiaries of Oil revenue allocations in Nigeria, and

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 will aid rapid economic and social development of lays claim to as a product of the 13 percent derivation communities in Khana, Tai, Gokana, Andoni, Opobo- fund is the Rivers State Sustainable Development Nkoro and Akuku-Toru Local Government Areas, the (RSSDA) project initiated by the Amaechi-led State is still bedeviled by high level of insecurity, administration. As noted earlier in this report, the massive infrastructure decay, widespread poverty, RSSDA, although established as a strategic initiative to unemployment, and environmental degradation. intensify development efforts in the areas of poverty Currently Rivers State stands as one of the highly alleviation, grassroots development and youth unsafe places for businesses and people owing to the empowerment in the State, was set up as a sustainable high rate of killings and kidnapping in the State, the development agency and not as an agency to fulfill the State also accounts for 36.4% of the unemployed essence of the 13 percent derivation. population in the country. The agency, in its brief period of existence, only tried to On the other hand, is the problem of accountability and diversify the economy of the State and engender misappropriation of the derivation funds by the various sustainable development in various parts of the and not administrations which makes it difficult for necessarily in Oil-producing communities. This communities affected by Oil exploration to access the explains the incessant calls by various groups for the derivation funds for development purposes. Since the direct control of the derivation funds by Oil-producing inception of the 13 percent derivation funds, Rivers communities in the State and the creation of agencies or State Government have received well over N1 trillion, commissions charged with the responsibility to yet little can be shown for this in the Oil bearing properly utilize the funds for development of communities. concerned communities. As revealed in this report, an overwhelming number of the respondents indicated The study revealed that only a small number of that the derivation funds can only be properly managed residents of Port Harcourt city and Akuku-toru Local by concerned communities and not by State Government Area have access to potable water, administrators who see the funds as part of their electricity, healthcare, educational services and job allocations. opportunities. The only project the State Government

4.6 Conclusion scholars (Okonta & Douglas, 2001; Joab-Peterside, Porter & Watts, 2012; Enogholase, 2012; Okotoni & Adesanmi, 2018) the poor management of oil revenue Oil has been a major source of wealth in Nigeria and has become a potent factor impeding socioeconomic contributes to more than 90% of the country’s export development, and has engendered the incessant revenue. militancy in the region.

Nigeria has, since the discovery of commercial Oil in As posited by Okotoni & Adesanmi (2018) the desire 1956, grown to be one of the largest economies in for a panacea to the debilitating socio-economic and Africa and the 6th largest producer of crude oil in the environmental challenges in the Niger Delta have led world. An analysis of the foreign trade statistics some people into taking up arms in challenge of the obtained by the National Bureau of Statistics revealed legitimacy of the State. This study reveals that the State that Nigeria earns a fortune form crude oil, for instance, Government is perceived by the people to have failed to out of the total export earnings of N3.1trillion, for the utilize the 13% derivation fund for its original purpose Second Quarter of 2017, Oil and Gas alone accounted of ameliorating the negative effects of oil production in for N2.43 trillion (Onuba, 2017). This enormous affected communities. wealth is not without a price; communities where the oil is derived are also usually seriously impacted on by As noted by Jinadu, et al (2007), the staggering the activities of Oil companies. Such communities disparity between the enormous oil wealth in the State suffer serious environmental degradation, destruction and the endemic poverty, decaying infrastructure, of livelihoods and high standards of living owing to the dearth of social amenities and the seriously degraded rebound effects of petroeconomy, hence, the environment the people of the Niger Delta region live imperativeness of their inclusion in the disbursement of in has earned the region various pejorative appellations revenue from Oil. As noted by Eboh (2017) data such as Okonta & Douglas’s (2001) description of the obtained from series of reports from the Central Bank Niger Delta region as a ‘place where vultures feast’. of Nigeria reveals that State Governments of Oil producing communities have received over N7 trillion so far as 13% derivation. Sadly, in spite of this huge income, social and economic amenities in the region are grossly inadequate and several of them are at the verge of breaking down. As noted by various

REPORT ON THE USE OF 13 PERCENT DERIVATION FUND IN RIVERS STATE | 00 4.7 Recommendations

From the foregoing and the evidences generated from this survey, it is thus recommended that:1) One of the functions of the State is to justify its existence and political legitimacy by meeting the needs and aspirations of the people it is representing. The effectiveness and quality of public goods and services affects how the citizenry perceive the State as essential, indispensable, useful or otherwise. Thus, concerted efforts should be made by the government at all levels to improve on the provision of infrastructure and social facilities to the citizenry.

2) Following the allegations of misappropriation and poor management of the derivation funds accruable to oil bearing communities and the attendant protests against the State’s control of the funds on behalf of the concerned communities, the study suggests that the Federal Government should, as a matter of urgency, reexamine the management of the 13% derivation fund by the State Government and also consider creating a special agency to manage the affairs of oil-developing communities. The agency must work in tandem with the communities in identifying their core needs and fashioning out ways to resolve them.

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