By Jimitota Onoyume

Edo state chapter of the Niger Delta Civil Society Forum (NDCSF), has enjoined the federal government to pay the 13 percent derivation fund  directly to oil and gas producing communities rather than through their  state governments.

The state Coordinator of NDCSF ,  Comrade Desmond Monday Igwemon made the appeal in his statement circulated in Abuja, stressing  that Section 162, Sub-section 2 of the 1999 constitution as amended clearly indicates  that the 13 percent derivation fund is  for  development of the  oil- and gas-producing communities.

He noted that the derivation fund serves as compensation for the extensive loss of fishing rights, farmlands, and livelihoods resulting from decades of oil and gas exploration across the Niger Delta.

Continuing, he said the Nigerian Extractive Industries Transparency Initiative (NEITI) defines the 13 percent derivation as a  “constitutionally backed financial incentive meant to reward host communities for their production input and to encourage cooperation and peaceful coexistence for optimal crude oil and gas production.”

“Although some states have created oil-producing area development commissions to implement community-based projects, the reality is that many of these commissions operate like private enterprises under the control of state governors. They have been politicized, underfunded, and, in many cases, rendered completely ineffective.”Igwemor said

He said that the alleged failure on the part of state governments to effectively disburse the derivation fund  underscored  the urgent need for President Bola Ahmed Tinubu to restructure the framework by which the derivation fund is managed.

” The 13 percent derivation is listed under Item 39 of the Exclusive Legislative List, which places all oil and gas matters solely under the jurisdiction of the Federal Government.

“This means that only the President has the constitutional authority to correct the long-standing anomaly in the administration of the derivation fund . The current practice of paying the fund through state governments is unconstitutional, ineffective, and contrary to the intention of the drafters of the Constitution “, he said.

Igwemon recalled that during the administration of former President Shehu Shagari, derivation funds were paid directly to host communities through derivation boards, a model he said ensured accountability and visible impact.

He insisted that since oil and gas remain on the Exclusive Legislative List, state governments have no legal authority to act as intermediaries in the management of derivation funds. The forum described the ongoing practice as a clear violation of two critical constitutional provisions:

“The separation of powers,  reserves oil and gas governance exclusively for the Federal Government.Section 162(2) of the 1999 Constitution, defines the 13 percent derivation as a first-line charge on the Federation Account.As a first charge, the 13 percent derivation fund must never be routed through state governments or any third-party channels.

” It must be paid directly to oil and gas-producing communities through democratically constituted derivation boards to ensure transparency, development impact, and justice for the people whose lands and waters bear the burden of Nigeria’s wealth “, said.

The NDCSF urged President Tinubu, the National Assembly, and relevant federal agencies to initiate immediate reforms to correct what it described as decades of constitutional misinterpretation and injustice against oil-producing communities in the Niger Delta.