NDDI Demands Full Enforcement of 13% Derivation Law, Faults Government Over Mismanagement of Oil-Producing Communities Funds

The Niger Delta Development Initiative (NDDI) has renewed its call for the Federal Government to ensure the full, lawful, and transparent implementation of the 13% derivation fund, insisting that oil-bearing communities continue to suffer severe neglect despite decades of revenue allocations supposedly meant for their development.

This stance follows a formal document issued by several Niger Delta host-community groups, calling for sweeping reforms, including the establishment of a 13% Derivation Board in each oil-producing state and a Presidential Monitoring Committee to enforce accountability in the management of the funds.

The NDDI rejects the N141.36 billion being paid as the 13% derivation fund to state government in October 2025 by the Federation Account Allocation Committee (FAAC), describing it as unconstitutional and unjust to the welfare of oil-producing communities.

The Coordinator, Comrade Marvelous Doboro, while briefing newsmen today in Abuja, said: “The release of the press statement by the NDDI was a reaction to the announcement made by the Federation Account Allocation Committee(FAAC) that it shared N2.094 Trillion for October 2025 including N141.359billion said to be 13% derivation from mineral revenue and paid to oil-producing states.”

Speaking on behalf of NDDI, Comrade Marvelous Doboro expressed deep dissatisfaction over what the group described as “systemic diversion and mismanagement” of derivation funds by state structures that have failed to channel the resources to the communities most affected by oil exploration.

Still on his statement, he said: “Today we stand together with one voice, united by a common goal: to demand fairness, justice, and rightful ownership of the 13% derivation funds that belong to the people of the oil-producing communities.”

Doboro noted that the appeal is rooted in constitutional provisions that recognise the 13% derivation as a first-line charge dedicated to the welfare of oil-producing areas. He lamented that, despite this legal backing, communities continue to witness widespread deprivation, environmental decay, and the erosion of socio-economic rights.

According to the NDDI Coordinator, “For over thirty years, host communities have lived with the painful reality of abandoned farmlands, polluted rivers, crumbling infrastructure, and economic hardship; while funds meant to address these challenges are trapped or misapplied within state systems.”

He also emphasised that the derivation principle was never intended to be a political tool but a corrective mechanism to compensate communities whose lands sustain the nation’s petroleum economy. They highlighted the historical evolution of the derivation percentage, which increased from 1.5% in 1985, to 3%, and eventually to 13% as enshrined in the 1999 Constitution (Section 162(2)).

NDDI and partner organisations stressed that achieving justice for host communities requires a transparent, accountable, and community-centred approach. They reiterated their demand for a legally backed Derivation Board that will ensure funds reach the grassroots without obstruction.

Comrade Doboro reaffirmed the group’s firm commitment to continuous advocacy until oil-producing communities receive the fairness, equity and constitutional entitlements that are rightfully theirs.