N-Delta Civil Society Writes Tinubu, Demands Direct 13% Derivation Funds to Oil-Producing Communities

The Niger Delta Civil Society Forum (NDCSF) has called on President Bola Ahmed Tinubu to apply the same constitutional firmness he recently demonstrated on local government autonomy by directing that the 13 per cent derivation funds be paid directly to oil-producing host communities.

The group said the continued payment of the constitutionally guaranteed derivation funds to state governments amounts to a long-standing injustice against communities whose natural resources sustain the Nigerian economy.

In a statement issued on Monday in Warri Delta State, the National Coordinator of the forum, Comrade Ezekiel Kagbala, reacted to President Tinubu’s directive to the 36 state governors to release local government allocations in compliance with a Supreme Court judgment. He argued that the President should extend such decisive action to the implementation of Section 162(2) of the 1999 Constitution, which provides for the principle of derivation.

According to Kagbala, the Constitution is explicit that not less than 13 per cent of revenue accruing from natural resources must be returned to the areas from which such resources are derived, as compensation for environmental degradation, loss of livelihoods, and the socio-economic impact of extraction activities.

“The same constitutional authority used to compel governors to comply with the Supreme Court judgment on local government funds should be applied to the 13 per cent derivation, which for over three decades has been unlawfully diverted to state governments,” the statement said.

The forum noted that since the return to civil rule in 1999, successive administrations have allowed the derivation funds meant for oil-producing communities to be channelled through state governments, contrary to the spirit and letter of the Constitution. It stressed that oil and gas fall under the Exclusive Legislative List, and therefore remain strictly within the purview of the Federal Government.

“Section 162(2) of the Constitution did not exist by accident,” Kagbala said. “Just as there can be no meaningful local government autonomy without direct funding, there can be no justification for the derivation principle without direct access by the communities for whom it was created.”

The civil society group further argued that the creation of state-controlled development commissions does not satisfy the constitutional requirement for the implementation of the derivation principle, insisting that such arrangements have failed to deliver justice, transparency, or development at the grassroots.

While acknowledging President Tinubu’s efforts to stabilise state finances, the forum warned that empowering governors with funds meant for host communities undermines accountability and leaves affected populations without the capacity to demand results.

“How can communities hold governors accountable for funds they never receive?” the statement queried, adding that the result has been decades of underdevelopment in oil-producing areas despite their enormous contribution to national revenue.

The forum recalled that prolonged neglect and injustice in the Niger Delta previously fuelled militancy and insecurity, forcing the Federal Government to spend huge sums on security operations and peace-building initiatives.

“It has been nearly three decades of injustice against communities whose God-given resources power this nation,” Kagbala said. “Without justice, peace becomes expensive, and without peace, everything collapses.”

The NDCSF therefore appealed to the President to issue an Executive Order establishing a 13 per cent Derivation Fund Board in each oil- and gas-producing state, alongside a Presidential Monitoring Committee to ensure transparency, accountability, and direct community development.

“Mr President has sworn to uphold and defend the Constitution,” the forum said. “This is the moment to correct a historic wrong by obeying the Constitution and handing oil-producing communities what rightfully belongs to them.”

The group expressed optimism that decisive action by President Tinubu would strengthen fiscal federalism, restore trust in government, and lay a sustainable foundation for peace and development in the Niger Delta.

The forum also commended Chief Wellington Okirika, the iconic Niger Delta leader whose relentless advocacy for fiscal justice earned him the title “Mr. 13%.” NDCSF said Okirika’s sacrifice symbolised the struggle for direct benefits to oil-producing communities.