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Deltans Suffer Despite 13% Oil Derivation Fund, Says Activist

by Emerald Nigeria
October 7, 2025
in Inside Delta
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Human and environmental rights advocate, Comrade Sheriff Mulade, has lamented the continued hardship faced by residents of Delta State despite the substantial 13% oil derivation funds accruing to the state from the federation account.

Mulade, who is also the Ibe-Sorimowei of the Ancient Gbaramatu Kingdom in Warri South-West Local Government Area, said the huge revenue inflow has not translated into meaningful development in oil-producing communities.

“The funds do not reflect in the lives of the people,” he said. “Residents of these oil-rich areas continue to suffer environmental degradation, poor infrastructure, and neglect from all tiers of government.”

The activist made these remarks while addressing journalists at the Africa for Peace Games Village in Ugolo/Osubi, Okpe Local Government Area, on Sunday.

He accused some political actors of mismanaging the derivation funds, saying their actions have worsened the plight of Deltans.

“The suffering of our people is aggravated by those who manipulate the 13% derivation fund to the detriment of others, especially the host communities,” Mulade said.

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According to him, the ₦1.3 trillion derivation fund reportedly received by the Delta State Government during the eight-year tenure of former Governor Dr. Ifeanyi Okowa has yielded little or no tangible impact.

“Despite efforts by stakeholders to ensure accountability, the campaign has suffered setbacks due to political interference,” he lamented. “But the struggle is not over.”

Mulade noted that the Niger Delta region still grapples with infrastructure decay, poverty, and environmental degradation, even as states continue to receive the derivation funds meant to address these challenges.

“These funds have become mere budgetary tools for most state governments, instead of being deployed for the real purpose they were designed for,” he added.

Highlighting Delta State’s substantial share of the derivation revenue, Mulade said the state remains one of the biggest beneficiaries of the constitutional provision that allocates 13% of revenue from natural resources to oil-producing states.

He revealed that: Between June 2023 and May 2024, Delta State received ₦211.69 billion;

In the first five months of 2025, the state got ₦185.16 billion, the highest among the nine oil-producing states; and

From 2015 to 2023, Delta reportedly received 29% of the total 13% derivation funds distributed nationwide.

Despite these huge allocations, Mulade said, there is little evidence of development in the oil-bearing areas.

“Delta State has reportedly withheld a large portion of the derivation funds from the Delta State Oil Producing Areas Development Commission (DESOPADEC) — the agency mandated to develop oil-producing communities,” he alleged.

He recalled that the Delta State Oil Producing Areas Stakeholders Forum recently sent an open letter to President Bola Ahmed Tinubu, raising similar concerns about the alleged mismanagement of the funds.

“It is quite unfortunate that DESOPADEC now exists only in newspapers and paid media campaigns,” Mulade lamented. “It has become a political tool to reward loyalists rather than a vehicle for genuine development.”

Tags: DerivationDESOPADECSheriff Mulade
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