Niger Delta Group Urges Tinubu to Reform Administration of 13% Derivation Fund

A South-South advocacy coalition, the Niger Delta Civil Society Forum, has appealed to President Bola Tinubu to intervene in what it describes as constitutional irregularities in the handling of Nigeria’s 13 per cent derivation allocation.

In an open letter released in Warri and signed by its coordinator, Ezekiel Kagbala, the forum argued that the current system of managing the fund does not align with constitutional provisions and deprives oil-producing communities of their rightful benefits.

The group maintained that petroleum resources fall strictly within the Exclusive Legislative List of the Constitution, meaning oversight of revenue derived from them rests with the Federal Government. It therefore called on the President to issue an executive directive that would correct what it termed longstanding administrative distortions in the disbursement of the fund.

According to the forum, such a directive should include the creation of dedicated derivation fund boards in oil-producing states, alongside a presidential monitoring body to ensure transparency, accountability, and adherence to constitutional requirements.

Describing its intervention as a matter of legal compliance rather than political rivalry, the group warned that continued implementation under the present arrangement weakens the rule of law and undermines constitutional guarantees for host communities.

The forum cited Section 162(2) of the Constitution, which stipulates that not less than 13 per cent of revenue derived from natural resources must be allocated to producing areas. It argued that the derivation component constitutes a first-line charge on the Federation Account and should therefore be paid directly in accordance with constitutional intent.

It criticised the long-standing practice of allowing state governments to administer the funds, insisting that such control lacks legal backing and raises questions about transparency and accountability in their utilisation.

The coalition also revisited the history of the derivation campaign, noting that early advocates for the principle did not envisage the present structure of control. It lamented that key figures who championed the struggle were never formally recognised despite their role in securing benefits now enjoyed by oil-producing states.

As part of its argument, the forum referenced earlier administrations, pointing out that derivation allocations in previous periods were overseen through federal structures designed to ensure compliance and monitoring. It urged the current government to draw lessons from those precedents in order to restore public confidence in the management of the funds.

The group concluded by expressing confidence in the President’s reform agenda and called for decisive steps that would bring the administration of the derivation allocation into full conformity with constitutional provisions while promoting justice and development in the Niger Delta.