The Niger Delta Civil Society Forum has opposed the payment of the 13 percent derivation fund to oil-producing state governments in the Niger Delta region. The group insists the money should go directly to oil communities and be managed by a 13% Derivation Board to be established in each oil-producing state.
At a press briefing in Warri, Delta State, the group’s coordinator stated that they are a coalition of civil society organizations from Delta, Edo, Akwa Ibom, Rivers, Bayelsa, Cross River, Ondo, and other states in the oil-rich region. They strongly oppose the payment of ₦141.36 billion as 13% derivation funds to state governments in the October 2025 revenue allocation, calling it unconstitutional, unjust, and harmful to oil-producing communities.
The forum cited Section 162(2) of the 1999 Constitution, which defines the 13% derivation as compensation for communities suffering environmental degradation, pollution, and socio-economic hardships due to oil and gas exploration. They expressed dissatisfaction with state governments’ alleged mismanagement of the funds, lack of transparency, and failure to deliver meaningful development to affected communities.
The coordinator criticized the Federation Account Allocation Committee for disbursing ₦141.359 billion as 13% derivation to state governments in October 2025, arguing that the constitution does not mandate payment to state governments. Despite decades of payments, host communities remain impoverished, with no roads, water, hospitals, or employment opportunities.
The group emphasized that the 13% derivation is not meant to bail out state governments or reduce their debts but belongs to the oil-producing communities. They submitted a position paper to the Revenue Mobilisation Allocation and Fiscal Commission, demanding full implementation of the 13% derivation principle and the creation of Derivation Boards in oil-producing states.
They also proposed a Presidential Monitoring and Compliance body to ensure transparency and direct fund flow to host communities. The forum met with the National Assembly, urging lawmakers to support legislation restructuring the management of the derivation fund. They called on the President to intervene and establish derivation boards to end what they describe as 30 years of injustice.