- Niger Delta civil society groups are calling for a Presidential Board to oversee the 13% derivation fund
- They argue the fund is constitutional and separate from the Petroleum Industry Act provisions
- The groups also raised concerns about mismanagement and lack of accountability in fund distribution
Civil society organisations in the Niger Delta have called on President Bola Ahmed Tinubu to establish a Presidential Board to oversee the management of the 13 per cent derivation fund, saying it would improve transparency, accountability and direct development in oil-producing communities.
Eko Hot Blog gathered that the demand was made under the Niger Delta Civil Society Forum, which argued that the current structure for managing the constitutional revenue allocation has failed to adequately benefit host communities.
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In a statement signed by its Coordinator, Ezekiel Kagbala, the group said it was responding to a recent communication from the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) on the administration of derivation revenues.
The Forum stressed that the 13 per cent derivation fund is a constitutional provision under Section 162(2) of the 1999 Constitution (as amended) and is separate from the Petroleum Industry Act (PIA), which governs other aspects of the oil and gas sector.
It explained that while the PIA provides for a three per cent contribution from oil companies for community development, it does not replace or override the constitutional derivation principle.
According to the group, attempts to link the derivation fund with provisions of the PIA are legally incorrect, insisting that the two laws serve different purposes.
The Forum described the derivation fund as compensation tied to oil production in host communities and insisted that it was designed to deliver direct benefits to affected areas.
It further criticised the existing disbursement system, alleging that it has been undermined by elite capture, mismanagement and lack of accountability, leading to widespread dissatisfaction in the region.
The stakeholders urged the federal government to review the current framework and create a dedicated presidential oversight board to ensure the proper utilisation of the fund for development in oil-producing communities across the Niger Delta.
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