…Wants special board to handle fund
Niger Delta Civil Society Forum (NDCSF), has kicked against payment of the 13 percent derivation fund to oil producing states in the Niger Delta region, insisting that the money should go to the oil communities and be managed by a 13% Derivation Board to be created in all the oil-producing states.
Coordinator of the group , Comrade Ezekiel Kagbala, at a press briefing in Warri ,Delta state, said the body is “a coalition of civil society organisations drawn from Delta, Edo, Akwa Ibom, Rivers, Bayelsa, Cross River, Ondo and other states in the oil-rich region, “
He said they were vehemently opposed to the payment of N141.36 billion being 13% derivation funds to state governments in the October 2025 revenue allocation, describing it as “unconstitutional, unjust, and detrimental to the welfare of oil-producing communities”.
According to the forum, section 162(2) of the 1999 constitution clearly defines the 13% derivation as compensation for resource-bearing communities that suffer environmental degradation, land depletion, pollution, loss of livelihoods, and other socio-economic hardships resulting from oil, gas, and mineral exploration.
The group expressed dissatisfaction with the payment of the derivation fund to state governments despite decades of alleged mismanagement, non-transparency, and failure to deliver meaningful development to communities directly impacted by mineral extraction.
The Coordinator, Comrade Ezekiel Kagbala said : ” Our press statement is a reaction to the announcement by the Federation Account Allocation Committee (FAAC) that it shared N2.094 trillion for October 2025, including N141.359 billion earmarked as 13% derivation from mineral revenue and paid to oil-producing states.
“No where in the Constitution is it stated that the funds must be paid to state governments or routed through them. For more than 30 years, these funds have been handed over to state governments, yet the oil-producing communities continue to wallow in poverty, underdevelopment, and environmental devastation.
“There are no roads, no water, no hospitals, no youth employment nothing to justify the trillions paid over the years. The continued payment of derivation to state governments is a gross violation of the socio-economic rights of host communities. The states often do not use the money for what they are meant for.”
“The 13% derivation fund is not a bailout for state governments, nor is it meant to reduce their debt burdens.The money belongs to the oil-producing communities. It is unacceptable that those who suffer the destructive impact of oil and gas exploration continue in pain while their rightful compensation is diverted. “
He said his body in collaboration with Host Community leaders submitted a position paper to the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) in Abuja where they demanded the total implementation of the 13% derivation principle , adding that they called for the creation of a 13% Derivation Boards in all oil-producing states.
He said : ” The forum maintained that a Presidential Monitoring and Compliance body would ensure transparency, accountability, and direct flow of funds to oil-bearing communities.
” I also led a delegation to the National Assembly, where the Forum met with the Chairman of the Senate Ad Hoc Committee on Crude Oil Theft and Sabotage, Senator Ned Nwoko. We urged lawmakers to support legislation that would restructure the management of the derivation fund.
” National Assembly must end this 30-years injustice. We also passionately appeal to President Bola Ahmed Tinubu to exercise his constitutional powers under the Exclusive Legislative List — where oil and gas matters are vested — to intervene decisively.
“We are appealing to President Bola Tinubu to create derivation boards that will guarantee direct, unhindered benefits to the oil-producing communities. The people are suffering, and the injustice must stop.”
