N-Delta Civil Society Forum Faults N141.36bn Derivation Payouts to States, Seeks Direct Benefit for Oil-Producing Areas,

By EgbemaVoice,

The Niger Delta Civil Society Forum (NDCSF), a coalition of civil society organisations drawn from Delta, Edo, Akwa Ibom, Rivers, Bayelsa, Cross River, Ondo and other states in the oil-rich region, has stoutly condemned the payment of N141.36 billion being 13% derivation funds to state governments in the October 2025 revenue allocation, describing the practice as "unconstitutional, unjust, and detrimental to the welfare of oil-producing communities".

According to the Forum, Section 162(2) of the 1999 Constitution clearly mandates the 13% derivation as compensation for resource-bearing communities that suffer environmental degradation, land depletion, pollution, loss of livelihoods, and other socio-economic hardships resulting from oil, gas, and mineral exploration.

The Forum expressed deep dissatisfaction over the continued transfer of derivation funds to state governments despite decades of alleged mismanagement, non-transparency, and failure to deliver meaningful development to communities directly impacted by mineral extraction.

These were contained in a statement signed by the Forum's Coordinator, Comrade Ezekiel Kagbala, copies of which were made available to journalists in Warri, Delta State on Saturday.

NDCSF's statement followed the announcement by the Federation Account Allocation Committee (FAAC) that it shared N2.094 trillion for October 2025, including N141.359 billion earmarked as 13% derivation from mineral revenue and paid to oil-producing states.

The Forum emphasized that "nowhere in the Constitution is it stated that the funds must be paid to state governments or routed through them".

“For more than 30 years, these funds have been handed over to state governments, yet the oil-producing communities continue to wallow in poverty, underdevelopment, and environmental devastation", the Forum stated. 

It added, "There are no roads, no water, no hospitals, no youth employment nothing to justify the trillions paid over the years”. 

The Forum described the continued payment of derivation to state governments as "a gross violation of the socio-economic rights of host communities", just as it accused the states of "using the funds to service debts, build state capital projects, or advance political interests while neglecting the people for whom the funds were constitutionally created".

The Forum warned that "the 13% derivation fund is not a bailout for state governments, nor is it meant to reduce their debt burdens".

“The funds are not for oil-producing states to settle debts or run political structures. They belong to the oil-producing communities. It is unacceptable that those who suffer the destructive impact of oil and gas exploration continue in pain while their rightful compensation is diverted,” the statement reiterated.

Meanwhile, the NDCSF, in collaboration with Host Community leaders, has on Tuesday, November 16, 2025, submitted a formal position paper to the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) in Abuja. 

The group demanded the full legal implementation of the 13% derivation principle and called for the creation of 13% Derivation Boards in all oil-producing states, among others.

The Forum maintained that "a Presidential Monitoring and Compliance body would ensure transparency, accountability, and direct flow of funds to oil-bearing communities".

Also on Wednesday, November 17, 2025, Kagbala led a delegation to the National Assembly, where the Forum met with the Chairman of the Senate Ad Hoc Committee on Crude Oil Theft and Sabotage, Senator Ned Nwoko. 

The group urged lawmakers to support legislation that would restructure the management of the derivation fund.

“If the National Assembly truly represents the people, they must end this 30-year injustice,” Kagbala stated during the visit.

The NDCSF issued a passionate appeal to President Bola Ahmed Tinubu, urging him to exercise his constitutional powers under the Exclusive Legislative List — where oil and gas matters are vested — to intervene decisively.

“We are appealing to President Bola Tinubu to create derivation boards that will guarantee direct, unhindered benefits to the oil-producing communities. The people are suffering, and the injustice must stop.”

The group insisted that President Tinubu has both the authority and the moral responsibility to correct what it described as one of the longest-standing fiscal distortions in Nigeria’s federal system.

The NDCSF concluded by calling on the Presidency, Nigerian National Assembly, Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) to urgently review and restructure the existing payment framework to ensure that the 13% derivation reaches those for whom it was originally intended the oil-producing communities.

“The era of paying derivations to state governments must end. The people of the Niger Delta have suffered enough,” the statement concluded.