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THE 15:85 MODEL -
A
RESOURCE OWNERSHIP AND CONTROL PEACE PLAN
When there is the will, there is the way!
June 15, 2005
Justice Niki Tobi – Chairmain Nigeria Political Reform Conference Secretariat Abuja, Nigeria
Dear Chairman,
Following the adoption of recommendations of the Committee of Leaders for a 17% Derivation benchmark, we are constrained to present this peace plan while fully supporting the decision by South-South delegates to walk-out of the NPRC.
The reported walk-out is a warning sign and precursor to the emergence of very serious resistance and conflicts expected from peoples of the South-South geo-political zone and must not be taken lightly. We must not behave like Emperor Nero who was reportedly twiddling fingers while Rome burned.
Consequently, we hereby offer NPRC and all Nigerians a solution to the impasse in order to foreclose on the disintegration of the country well before the fifteen years predicted by the US National Intelligence Committee.
It is irrefutable that Nigeria has retrogressed since independence. This lack of progress can be traced to, among other things, our unwillingness to do the right thing at the right time in order to build a solid foundation for fairness and justice to all Nigerians.
It comes as no surprise that once again Nigeria is playing the Ostrich at the latest opportunity, the NPRC, to finally right the wrongs of the past while setting the country on a firm foundation and good direction for the future.
As the responsibility to find a solution for this problem is ultimately that of all Nigerians, creating the proper milieu that guarantees a stable, peaceful and prosperous society for ourselves and future generations is a task we must accomplish.
We not only seek to clarify the meaning of resource control and management rights, but also to present a working peace plan toward a fair, just, equitable and manageable natural resources sharing policy that shall be favorable to all Nigeria stakeholders.
No stronger foundation can be set for the country than through the adoption of true federalism as the system from which resource ownership, control and management rights are guaranteed. As would be expected, true fiscal and socio-political federalism offer powers of resource ownership and control to individuals, local communities or states as the case may be, such that:
1. States own land and have MINERAL RIGHTS : · All land and any portion of the contiguous waters up to the continental shelf with whatever is on it and under it belongs to the state;
2. States ha ve MINING RIGHTS to: · Determine what and when to mine, explore or remove own resources according to an adopted resource control model ; · Determine from which part of the land or contiguous seas resources may be mined, explored or removed; · Determine how muc h of the resource may be mined, explored or removed.
Part of the blame for current impasse rests squarely on the fact that there are so many different understandings of what resource control means, with equally different suggestions toward a long lasting solution. The cacophony of voices generated by various groups and persons is enough to cause confusion and concomitantly generate fear, resistance or opposition from geo-political and other special interest groups across the country.
Some Nigerians, especially from the Niger-Delta states, are mistakenly calling for increase in derivation percentage of revenue paid to states from where natural resources are mined or explored. Various persons or groups have proposed equally various percentages for the derivation principle for revenue allocation to resource endowed states.
Truth is that not only have various derivation principles become underhanded policies of extortion against indigenous communities and states endowed with natural resources, they have always been and remain perpetual conflict generators as Nigerians are never fully satisfied with their applications. Therefore, an idea of natural resource revenue sharing based upon any derivation principle or percentage is not only irresponsible, but is bound to fail.
It must be noted that no percentage derivation can equal true resource ownership and control rights . We are , therefore, unequivocal in our position that all forms of percentage derivation pertaining to revenues from solid and other mineral resources should be permanently excluded from the new Constitution.
Therefore, having considered various voices and positions regarding issue of resource control in Nigeria, we are constrained to reiterate what we have earlier suggested and submitted as a memorandum to the ongoing NPRC: The Fifteen-Eighty five model for resource control and management rights, which suggests how natural resource wealth should be shared between: 1. Individuals (or communities) and State; 2. State and Federal Government.
Meaning of Resource Control
We believe that provisions for resource control rights must be entrenched in the new constitution such that:
Resource control = local land ownership + local incorporation of (industrial) companies + federal and local taxation at agreed rates (according to model below).
In order to secure above rights by individuals, local communities, states and the federal government, the following items below are aberrations that need to be amended or repealed as necessary:
1. Section 315(5)(d) of the 1999 Constitution; 2. Section 44(3) of 1999 Constitution; 3. Section 251(n) of 1999 Constitution; 4. Exclusive Legislative list Item No. 32 and 62 of 1999 Constitution; 5. Abolition of Onshore-Offshore Dichotomy Law 2004; 6. Section 162 (2) of 1999 Constituti on regarding The Derivation Principle for Revenue Allocation.
Against the plethora of complains and fears arising from the history of unfairness and injustice, potentials for break up of Nigeria and increasingly fatal conflicts, the imperative is a solution that takes into consideration all concerns by various Nigeria stakeholders in order that peace and unity of our beloved country shall be sustained.
We believe Nigerians must seize opportunity of the NPRC to deal frontally with issues of brazen injustice, inequities, unfairness, fears and fraud common to the issue of control and management of resources, especially since crude oil was discovered and explored in Nigeria. Therefore, we hereby propose the 15:85 model and enjoin all Nigerians to support as the long lasting solution best suited for Nigeria.
The Fifteen-Eighty Five Model
The 15:85 model, a simple percentage ratio for actual control and management of naturally occurring mineral resources. It founds and develops upon detailed examination of our national raw materials and natural resource base from which all states are liberally endowed. It is not a derivation formula but as a genuine solution doubling as an authentic peace plan for long term benefit to all Nigerians.
Simply, it is a 15:85 percentage ratio for the ownership, control and management of resources in their naturally occurring states between an individual (or local community) and federating unit (state) in one application; or between the federating unit (state) and federal government respectively.
Figure 1: 15:85 Model for percentage Resource Ownership, Control and Management rights
In this model, 15% of any naturally occurring resource or raw material found under or upon the land and surrounding seas belongs exclusively to and remains both tax and royalty free in favor of the state in which it is found. The rest 85% may be considered as due taxation and belongs to the federal government.
Where naturally occurring resource is found upon a piece of land belonging to an individual or a local community, the default ratio for ownership, control and management becomes 2.25:12.75:85 (%) in favor of individual (or local community), state and federal government respectively.
Whereas this model encourages local ownership of land and adjoining seas, states and the federal government share both control of natural resources and burden of ecological devastation according to the fixed ratio.
Whereas the federal government controls and manages 85% of natural resources on behalf of all states of the federation, accruing revenue is to be shared between the federal government, states and local governments using agreed methods and a revised Revenue Allocation Formula.
Benefits of the Fifteen-Eighty Five Model
· Returns local land ownership and company incorporation rights to federating units. · Provides tangible resource control rights and means of wealth generation to individuals, indigenous communities and federating units. · Provides safety net for federating units (states) less endowed with natural resources. · Guarantees access to endowed natural resources by individuals and local communities comprising federating units (states). · Provides incentive for federating units (states) and federal governments to discover, mine and develop naturally occurring resources. · A federating unit or state may decide who mines or explores 15% of endowed natural resources it controls. · Encourages creativity and innovative resource management styles by leadership in federating units (states). · Reduces over-dependence on revenue from the federal government. · Removes the use of Derivation principles for revenue allocation. · Devolves significant power from the federal to the federating unit (state) government.
Conclusion
Above is premised upon the following: 1. That increased demands for true federalism and attendant clamor for resource ownership, control and management rights by Niger Delta peoples and several other Nigerians are justified. 2. That absolute control of all naturally occurring resources by federal government is not acceptable. 3. That history of several derivation formulae has failed to satisfy the people in whose lands and surrounding seas crude oil is being mined or explored. Therefore, any derivation principle or percentage that continues to deny individuals and states ownership of natural resources is not acceptable. 4. That restiveness shall continue to plague the Niger Delta region and other parts of Nigeria until the right thing is done. 5. That any effort by a group or section of Nigerians to continue the fleecing of the Niger Delta without recourse to natural justice, fairness and an all-rounded federalism and fairness is bound to accelerate the breaking up of Nigeria. 6. That recommendation to sustain or increase the revenue derivation percentage as an alternative to actual resource control and management rights by states, local communities and individuals is an unacceptable and temporary solution that cannot ebb the growing support for resource control and management rights justifiably due the people and states of the Niger Delta region in particular and Nigerians in general.
Fellow countrymen and delegates to the NPRC, protracting problem of resource ownership, control management rights that confront us today will certainly require no less an effort from you and other visionary leaders toward a lasting solution and inspiration for all Nigerians.
Let us make no mistake about the direction we must follow: that of unity and strength, justice and fairness, mutual respect and tolerance for all Nigerians. At this critical time and point of our nationhood, we must showcase our determination to sustain unity, equity, fairness and justice for all Nigerians through well-informed choices and decisions. We warn that failure may cause an irreversible implosion too damning to consider.
As we responsibly offer support in presenting this strategically synthesized solution (the 15:85 model) for the Nigeria resource control and management rights conflict, we urge you to consider and adopt same for the good of all Nigerians.
God desires for the peace and prosperity of our great nation and His will shall be done. Amen!
Signed: N. H. Ibanga ( gaussa@earthlink.net) Clement Ikpatt (cikpatt@hotmail.com )
Cc
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