Niger Delta Group Urges Tinubu to Issue Executive Order on 13% Derivation Fund

A Niger Delta civil society organisation has called on President Bola Ahmed Tinubu to issue an executive order to ensure the proper implementation of the 13 per cent derivation fund for oil-producing communities.

The group, identified as the Niger Delta Civil Society Forum (NDCSF), made the appeal amid renewed debate over the management and disbursement of funds accruing to oil-producing states under Nigeria’s revenue allocation framework. Addressing journalists, leaders of the forum argued that although the 13 per cent derivation is constitutionally guaranteed, host communities have not directly benefited from the funds over the years. They maintained that the money, which is paid to oil-producing states, is often controlled by state governments without sufficient transparency or direct impact on communities bearing the environmental and social cost of oil exploration. The 13 per cent derivation principle is provided for under Section 162(2) of the 1999 Constitution, which mandates that not less than 13 per cent of revenue derived from natural resources be returned to the producing states. The policy was introduced to address environmental degradation, underdevelopment and economic imbalance in oil-producing areas. However, the NDCSF contended that the spirit of the provision has been undermined, as host communities allegedly remain marginalised despite substantial allocations to their states. The group called on President Tinubu to issue an executive order compelling transparency, accountability and, where possible, direct funding mechanisms that would ensure that affected communities receive tangible development benefits. According to the forum, such an order could establish a monitoring framework or special board to oversee the utilisation of derivation funds, ensuring they are channelled into infrastructure, environmental remediation, healthcare, education and job creation within host communities. The demand comes amid growing scrutiny of revenue allocation and fiscal federalism in Nigeria, with stakeholders across the Niger Delta region insisting that derivation funds should translate into measurable development outcomes. While the Federal Government has yet to respond officially to the latest call, analysts say any move to alter the implementation structure of the derivation fund could spark fresh debate between the federal and state governments over constitutional powers and fiscal autonomy.