The Niger Delta Civil Society Forum has rejected claims that state governments are the rightful beneficiaries of the 13 per cent derivation revenue from oil and gas production. Instead, the group insists the funds belong to oil-producing host communities.
The Forum criticised comments attributed to the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mohammed Bello Shehu. He reportedly argued that states where minerals are produced should receive the derivation revenue.
According to the group, that view misreads the Constitution and weakens the original purpose of the derivation principle.
In a statement issued in Warri, Delta State, and signed by its Coordinator, Ezekiel Kagbala, the Forum described the RMAFC chairman’s position as a distortion of constitutional intent and historical context.
Derivation Created as Restitution
The Forum explained that the derivation principle exists to compensate oil-bearing communities for decades of environmental damage. It also covers health risks, lost livelihoods, and social displacement caused by oil and gas exploration.
Moreover, the group stressed that host communities in Akwa Ibom, Cross River, Bayelsa, Edo, Ondo, Rivers, and Delta states bear the direct impact of petroleum activities. Therefore, they should receive the derivation benefits.
The Forum warned that policies or administrative interpretations that route the funds solely to state governments only deepen long-standing injustice.
In its view, treating derivation as a political allocation, rather than restitution, ignores the sacrifices oil-producing communities have made to sustain Nigeria’s economy.
Call for Direct Allocation and Oversight
Meanwhile, the Forum faulted ongoing federal efforts to resolve oil well ownership disputes. It argued that decisions favouring state governments, without safeguards for host communities, exclude the true custodians of the resources.
As a result, the group urged President Bola Tinubu and the National Assembly to intervene. It called for the creation of a derivation board and a presidential monitoring committee to ensure direct allocation to host communities.
According to the Forum, such structures would improve transparency and strengthen accountability. They would also allow communities to set development priorities based on local needs.
While acknowledging RMAFC’s collaboration with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and other agencies to verify oil and gas well locations, the group said technical verification alone cannot resolve deeper grievances.
Ultimately, the Forum urged RMAFC, NUPRC, and other relevant institutions to act in line with constitutional principles of equity and justice. It warned that continued marginalisation could heighten resentment and threaten stability in the Niger Delta.