President Bola Tinubu has been urged to issue an Executive Order to restore the lawful and constitutional administration of the 13 per cent derivation fund, amid concerns that state governors’ continued control undermines transparency, accountability, and the 1999 Constitution (as amended).
The call was made in an open letter by the Coordinator of the Niger Delta Civil Society Forum (NDCSF), Comrade Ezekiel Kagbala, who said the group was compelled to act “in the spirit of patriotism, constitutionalism, and justice.”
The Forum argued that oil and gas revenues fall strictly within the Exclusive Legislative List and are therefore under federal jurisdiction.
Citing Item 39 of Part I of the Second Schedule to the Constitution, which covers mines and minerals, including oilfields, oil mining, geological surveys, and natural gas, the group maintained that constitutional authority over oil and gas matters rests solely with the Federal Government acting through the President.
“Yet, for over thirty years, governors of oil- and gas-producing states and their state assemblies have exercised control over derivation funds,” the Forum stated, describing the practice as a sustained constitutional overreach.
The NDCSF also referenced Section 162(2) of the Constitution, which provides that the principle of derivation shall be “not less than thirteen per cent of the revenue accruing to the Federation Account from any natural resources.”
According to the group, the 13 per cent derivation fund constitutes a first-line charge on the Federation Account and must be set aside before the remaining 87 per cent is distributed among the Federal, State, and Local Governments.
“In law and practice, first-line charges are paid directly to beneficiaries. The Federal Government is a second-line charge, states are third-line, and local governments are fourth-line.
“However, the current practice of handing the 13 per cent derivation fund to state governors to administer has no constitutional foundation and undermines transparency, accountability, and the intent of the Constitution,” it stated.
The group argued that vesting the funds in governors has weakened oversight and diverted the derivation principle from its core objective of directly benefiting oil-producing and host communities.
Recalling the historic struggle led by Chief Dr. Wellington Okrika, popularly known as “Mr. 13 Per Cent,” the Forum noted that state governors were not part of the agitation that secured the derivation principle.
“The present mindless abuse of the derivation principle by political actors who neither fought for it nor respect its constitutional foundations is unjust, morally troubling, and capable of attracting international intervention if allowed to continue unchecked,” the letter warned.
The NDCSF also cited precedents where the Federal Government exercised direct oversight in managing derivation funds under President Shehu Shagari, as well as General Ibrahim Babangida, adding, “These actions respected constitutional boundaries and provided clear models for lawful and transparent administration.”
Expressing concern over perceived silence by federal authorities despite previous submissions, the NDCSF called on President Tinubu to act decisively by issuing an Executive Order establishing a 13% Derivation Fund Board in each oil- and gas-producing state, alongside a Presidential Monitoring Committee to ensure strict constitutional compliance.
“This appeal is not political; it is constitutional. It is not adversarial; it is corrective,” the Forum stressed.