Civil Society Raises Alarm Over 13% Derivation Fund, Accuses Institutions of Misleading Presidency

Civil society stakeholders in the Niger Delta have raised concerns over the management of the 13 per cent derivation fund, warning President Bola Ahmed Tinubu against what they describe as institutional misinformation and misinterpretation of constitutional provisions governing resource allocation.

The Niger Delta Civil Society Forum (NDCSF), in a statement signed by its coordinator, Comr. Ezekiel Kagbala, alleged that some federal institutions, including the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), were providing interpretations that could mislead the Presidency and distort the intent of the derivation principle ahead of the 2027 general elections.

The group argued that attempts to link the 13 per cent derivation fund to provisions of the Petroleum Industry Act (PIA) were constitutionally incorrect, insisting that the derivation principle is clearly established under Section 162(2) of the 1999 Constitution.

According to the forum, the constitutional provision guarantees that not less than 13 per cent of revenue from natural resources is returned to oil-producing states based on the principle of derivation, and should not be conflated with operational frameworks governing the oil and gas industry under the PIA.

The civil society coalition further maintained that oil and gas matters remain on the Exclusive Legislative List, stressing that neither state governments nor state assemblies have authority to alter or reinterpret the constitutional structure of derivation funding.

The group also referenced historical advocacy efforts during the 1994/95 Constitutional Conference, where resource control debates shaped the eventual adoption of the derivation principle. It noted that Niger Delta leaders played a key role in pushing for fiscal justice during the military era.

NDCSF expressed concern over what it described as inconsistencies in the position of RMAFC, alleging that the commission had previously supported the creation of a Derivation Fund Board through legislative proposals but had since appeared to shift its stance on the administration of the funds.

The forum warned that such contradictions raise questions about institutional credibility and transparency in advising the federal government on sensitive constitutional matters.

It called on the Presidency to consider establishing a dedicated 13 per cent Derivation Fund Board, alongside a presidential monitoring committee to ensure accountability, transparency, and direct impact on oil-producing communities.

According to the group, continued management of derivation funds through state governments has not produced adequate grassroots development in the Niger Delta, despite decades of substantial revenue inflows.

It argued that many host communities still face environmental degradation, unemployment, and inadequate infrastructure, despite their contribution to national oil revenue.

The forum urged the federal government to urgently review the existing framework governing derivation payments, warning that failure to address structural concerns could deepen distrust and inequality in the region.