The Amananaowei of Meinbutus Federated Communities in Delta, Bayelsa and Rivers states, HRH King Jerry Prebor (Snr.), has urged President Bola Ahmed Tinubu to immediately overhaul the administration of the constitutional 13 per cent derivation fund, insisting that the resources belong to oil-producing communities and not state governments.
The monarch also called for the establishment of a 13% Derivation Fund Board and a Presidential Monitoring Committee to ensure transparency, accountability and direct delivery of development projects to host communities that bear the environmental and economic burden of oil production.
In an open letter dated June 15, 2026, and made available to journalists, King Prebor accused state governments of benefiting disproportionately from derivation allocations while oil-bearing communities remain trapped in poverty, neglect and underdevelopment despite decades of oil exploration and the disbursement of trillions of naira under the derivation principle.
He argued that the constitutional provision for derivation under Section 162(2) of the 1999 Constitution was never intended to serve as an unrestricted revenue stream for state governments but as a mechanism for compensating and developing communities directly impacted by oil and gas activities.
According to the monarch, the struggle that secured the restoration and enhancement of derivation was championed by Niger Delta communities, traditional rulers, civil society groups and resource control advocates, not state governments.
"The 13 per cent derivation fund was fought for by the people whose lands produce the oil that sustains the nation's economy. It was never intended to enrich state bureaucracies while host communities remain without roads, potable water, healthcare facilities, schools and other basic necessities," he said.
King Prebor recalled the contributions of leading Niger Delta advocates, including Chief Dr. Wellington Okrika, CON, who championed increased derivation and resource control for the benefit of host communities.
The monarch faulted recent comments by the Revenue Mobilisation Allocation and Fiscal Commission, arguing that suggestions that the Petroleum Industry Act had adequately addressed host community concerns were misleading and constitutionally untenable.
According to him, the Petroleum Industry Act and the 13 per cent derivation principle are separate legal frameworks and should not be treated as substitutes.
"The Petroleum Industry Act cannot replace the constitutional provisions governing derivation. The continued underdevelopment of oil-producing communities is undeniable evidence that the present arrangement has failed to achieve the objectives for which derivation was created," he stated.
He warned that the persistent exclusion of host communities from decisions concerning the utilisation of derivation funds could deepen grievances and undermine peace and stability in the Niger Delta.
The traditional ruler therefore urged President Tinubu to intervene decisively by creating a statutory framework that guarantees direct community participation in the management, monitoring and utilisation of derivation revenues.
He specifically called on the President to establish a Derivation Fund Board, constitute a Presidential Monitoring Committee comprising representatives of host communities, traditional institutions and civil society organisations, and direct the Revenue Mobilisation Allocation and Fiscal Commission to review its position on the administration of derivation funds.
"The time has come to end the diversion, abuse and misapplication of resources meant for oil-producing communities. Justice, fairness and constitutional equity demand that those who bear the burden of oil production must be the primary beneficiaries of the derivation fund. The people are not asking for favours; they are demanding what rightly belongs to them under the spirit and intent of the Constitution," the monarch declared.
OPEN LETTER TO PRESIDENT BOLA AHMED TINUBU, GCFR
RE: ESTABLISHMENT OF A 13% DERIVATION FUND BOARD AND PRESIDENTIAL MONITORING COMMITTEE FOR OIL-PRODUCING COMMUNITIES
Your Excellency,
I write as the Amananaowei of Meinbutus Federated Communities spanning Delta, Bayelsa and Rivers States and as a representative voice of numerous oil-producing communities whose lands and waters sustain Nigeria's petroleum economy.
This letter is borne out of deep concern regarding the continued exclusion of oil-producing communities from the benefits of the constitutional 13 per cent derivation fund provided under Section 162(2) of the 1999 Constitution of the Federal Republic of Nigeria (as amended).
The derivation principle was conceived as a mechanism of justice, compensation and development for communities that bear the environmental, economic and social consequences of oil and gas exploitation. Unfortunately, despite trillions of naira disbursed over the years, many oil-bearing communities remain without potable water, quality healthcare, functional schools, motorable roads and other critical infrastructure. The reality on the ground stands in direct contradiction to the constitutional intent behind the derivation principle.
Your Excellency, it is important to state that the struggle for the restoration and enhancement of derivation was championed by host communities, traditional rulers, civil society organisations and respected Niger Delta leaders. It was not a struggle initiated or sustained by state governments. Therefore, the beneficiaries envisaged by both the spirit and intent of derivation are the oil-producing communities themselves.
In view of the foregoing, I respectfully urge your administration to:
- Establish a 13% Derivation Fund Board through the appropriate legislative and executive processes.
- Constitute a Presidential Monitoring Committee comprising representatives of host communities, traditional institutions, civil society organisations and relevant government agencies.
- Ensure transparency, accountability and direct community participation in the planning, execution and monitoring of projects funded through derivation revenues.
- Direct the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) to review its position on the administration of derivation funds and recognise the constitutional rights and developmental interests of host communities.
I also respectfully disagree with recent assertions that the Petroleum Industry Act has sufficiently addressed concerns relating to the 13 per cent derivation fund. The PIA and the constitutional derivation principle are distinct legal frameworks. One cannot substitute for the other.
The persistent underdevelopment of oil-producing communities remains visible evidence that the current arrangement has failed to deliver the developmental outcomes envisaged by the Constitution.
Your Excellency, I have confidence in your commitment to justice, equity and national unity. Just as your administration demonstrated leadership in resolving the Warri Federal Constituency ward delineation matter, I believe decisive intervention on the derivation issue will promote peace, stability and sustainable development across the Niger Delta.
The people seek fairness, not favour; justice, not charity. The resources generated from their ancestral lands should visibly translate into improved living conditions, modern infrastructure, economic empowerment and sustainable development.
I therefore appeal for your urgent intervention to ensure that the constitutional objectives of the 13 per cent derivation principle are fully realised and that oil-producing communities become direct beneficiaries of the resources derived from their lands and waters.
Please accept the assurances of my highest regards.
HRH King Jerry Prebor (Snr.)
Amananaowei, Meinbutus Federated Communities
Delta, Bayelsa and Rivers States