(DDM) – The Niger Delta Civil Society Forum has demanded that the 13% derivation funds be paid directly to oil-producing host communities, bypassing state governments.
The statement was signed by the Forum’s Coordinator, Comrade Ezekiel Kagbala, and issued in Warri, Delta State, on Thursday, January 29, 2026.
The Forum strongly criticized the position of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) Chairman, Dr. Mohammed Bello Shehu, alleging that he misinterpreted the law to favor state governments.
Comrade Kagbala emphasized that the derivation principle was designed to compensate host communities for the environmental degradation, loss of livelihoods, and socio-economic displacement caused by oil exploration activities.
He warned that the current approach of routing the funds through state governments undermines the purpose of the derivation principle and denies affected communities the resources they are entitled to.
The Forum stressed that host communities continue to bear the brunt of oil operations, including oil spills, gas flaring, erosion, and pollution, yet receive limited direct benefits from the federal allocations.
Comrade Kagbala called on President Bola Tinubu and members of the National Assembly to take urgent action to correct what he described as systemic injustice.
He recommended the immediate establishment of a dedicated derivation board tasked with directly managing and disbursing the 13% to host communities.
The Forum also proposed the creation of a presidential monitoring committee to ensure transparency, accountability, and proper oversight of the derivation funds at the community level.
According to the Niger Delta Civil Society Forum, proper management of the funds will enhance local development, improve infrastructure, and provide social services in the host communities.
The group urged oil companies, state governments, and federal agencies to cooperate with host communities and respect their rights to benefit directly from the resources extracted from their lands.
Comrade Kagbala warned that failure to implement direct allocation could escalate tensions and fuel agitation among Niger Delta youths and local stakeholders.
The Forum highlighted historical instances where derivation funds routed through state governments were mismanaged, diverted, or delayed, further impoverishing affected communities.
He stressed that direct allocation is not only a legal imperative but also a moral obligation to the people who host oil operations.
The statement noted that several host communities have struggled with unemployment, poor health facilities, and inadequate education, problems that could be addressed if derivation funds were properly directed.
Comrade Kagbala emphasized that the federal government must act swiftly to institutionalize mechanisms that guarantee community control and participation in the management of their rightful revenues.
Observers say the Niger Delta Civil Society Forum’s call adds pressure on both the federal government and the National Assembly to reconsider existing derivation policies.
Analysts note that transparent and direct allocation could set a precedent for resource governance across Nigeria’s oil-producing regions.
The Forum concluded by urging all stakeholders to prioritize community development and respect the legal provisions of the derivation principle.
Failure to act, the group warned, may exacerbate unrest in the Niger Delta and undermine national stability.
