By Jimitota Onoyume

National Coordinator of Niger Delta Development Initiative, NDDI, Comrade Doboro Marvelous has appealed to President Bola Tinubu to immediately halt direct payment of the 13 percent derivation funds to state governments, alleging that the current arrangement was a conduit for abuse , exclusion and systemic failure at the grassroots.

Aligning with the Niger Delta Civil society Forum, the group in a statement in Warri, Delta State, demanded the establishment of a Presidential Monitoring Committee and independent Derivation Boards in all oil-producing states to guarantee transparency, accountability and direct development impact in host communities.

The group noted that the new revenue figures released by the National Bureau of Statistics (NBS) and the Federation Account Allocation Committee (FAAC), revealed that “nine oil-producing states received N620.23 billion in derivation funds between January and May 2025—a massive 101.3 per cent increase from the N308.19 billion shared in the same period of 2024.”

“A breakdown of the figures showed that Delta State received N185.16 billion, followed by Bayelsa (N130.21bn), Akwa Ibom (N124.79bn), and Rivers State (N114.06bn). Others include Edo (N18.60bn), Ondo (N15.51bn), Imo (N14.48bn), Abia (N8.99bn), and Anambra (N8.42bn).

“Notably, the four top-earning states—Delta, Bayelsa, Akwa Ibom and Rivers—cornered over 88 per cent of the total derivation funds within just five months, while some states recorded dramatic year-on-year increases, including Abia (205%), Imo (183%), Anambra (126%) and Bayelsa (122%).

“The 13 per cent derivation, enshrined in Section 162(2) of the 1999 Constitution, was designed to compensate oil-producing areas for environmental damage and to stimulate development. However, NDDI insists that the policy has been grossly betrayed in practice”, the group said.

The National Coordinator of NDDI, Comrade Marvelous, described the current system as a monumental failure.

“Over N620 billion was paid out in just five months, yet oil-bearing communities remain devastated, polluted and abandoned. This is irrefutable evidence that paying the 13 per cent derivation through state governments has failed completely”, he said.

He accused some state governments of allegedly diverting funds meant for host communities, leaving residents of oil-producing areas to contend with environmental destruction, unemployment and collapsing social infrastructure.

“The figures expose a scandal. If these funds were truly reaching the grassroots, the Niger Delta would not look the way it does today.

“NDDI call on President Tinubu to exercise executive authority to suspend direct derivation payments to states and replace the system with independent Derivation Boards and Presidential Monitoring Committees in each oil-producing state “, he said.

According to the group, the proposed boards should comprise representatives of host communities, civil society organisations, and relevant federal agencies, with strict oversight mechanisms and clear mandates to fund environmental remediation, roads, schools, healthcare, clean water and sustainable livelihoods.

” Our demand comes amid renewed national agitation over the derivation formula. In October 2024, the House of Representatives scheduled a debate on a constitutional amendment bill seeking to increase derivation from 13 per cent to 50 per cent, while more states—including Enugu and Niger—are pushing to be recognised as derivation beneficiaries.

“NDDI warns that any increase or expansion without reforming the management structure would only multiply corruption and deepen underdevelopment.

“Our position is firm. Before increasing the percentage or adding new states, the Federal Government must first fix the broken system. The money must be taken closer to the people through transparent, monitored derivation boards “, he said.

The group expressed confidence that President Tinubu, known for his reform posture, had the political will to end what it described as the hijack of derivation funds.

” When the president stops the payment to states and does as we propose oil-producing communities will feel the true benefits of the resources extracted from their land “, the group said.