National Assembly moves to give states full control over oil, mineral resources

Bill passes second reading

By Ologeh Joseph and Samuel Ogunsona

Nigeria may witness a radical reform of the constitution.

On Wednesday, a bill seeking to transfer ownership and control of oil and gas and other mineral resources from the Federal to State Governments has passed second reading in the lower house.

If the bill scales through, it will transform the landscape of Nigeria in a radical, if not revolutionary manner.

Observers also believe if the bill becomes law, it is certain to reduce the violent agitation for the break up of the country while fostering mutual cooperation and respect among the indigenous ethnic nations.

While the bill hopes to transfer oil ownership to states, it may however not immediately resolve the lingering call for ethnic self determination but certainly it will reduce the clamour and may largely eliminate existing ethnic tension.

In the past few years, Nigeria has witnessed calls for self determination by oil producing states and even in the North East where radical Islamic extremists are calling for a theocratic state driven by Sharia.

In the South East and oil rich South South, armed insurgency has replaced earlier peaceful agitation led by late Ken Saro-Wiwa who was judicially murdered by the military in November 1995.

Proponents of the new bill want the 1999 Constitution amended.

It will mean the transfer of management and control of natural resources, including oil fields, minerals, and natural gas, from the central Government to States.

The Bill has already scaled second reading in the House of Representatives.

The bill is expected to economically restructure Nigeria’s garrison resource template giving states greater autonomy over the ownership, exploration, management, and revenue generation of nature’s gifts within their indigenous communities.

The bill named “A Bill for an Act to Alter the Provisions of the Constitution of the Federal Republic of Nigeria, 1999 to Decentralize the Governance of Natural Resources in the Federal Republic of Nigeria to transfer Mines and Minerals, Including Oil Fields, Oil Mining, Geological Surveys and Natural Gas from the Exclusive Legislative List to the Concurrent Legislative List and for Related Matters (HB. 200, 1310, 1446 & 1546) was proposed by Abbas Tajudeen, the House Speaker and three others.

Irohinoodua was reliably informed that the Bill has received full support of the South South, Middle Belt and the South West legislators.

“The caucuses of the South West, South South and Middle Belt met. I can tell you that we are going to speak with one voice. We have agreed to support the bill and make it law”, a Senator from the South-South who does not wish to be named told Irohinoodua.

He said the bill will reverse what he called “agelong injustices” in line with the dream of Nigeria’s founding fathers.

At present, there are some 68 items on the “Exclusive Legislative List,” of the Federal Government which means that states are mere subordinates.

The 1999 Constitution drafter by the military in Part 1 of the Second Schedule, (Exclusive Legislative List) of the 1999 Constitution, Item 39 currently states: “Mines and minerals, including oil fields, oil mining, geological surveys, and natural gas.” This provision gives the federal government exclusive control over these resources, meaning that states have no direct authority to regulate, tax, or manage them.

The government currently guarantees 13 percent derivation to states which has not been able to douse the lingering agitation for resource control.

The proposed bill will remove Item 39 from the Exclusive List and place it under the Concurrent Legislative List.

It means both the Federal and State Governments would have the power to legislate and regulate resource extraction and management.

The bill if it scales through will give the right to issue oil and gas licenses to states while empowering them to issue licenses for mineral exploration.

It will also ensure states without oil and gas look inwards for resource generation.