The Niger Delta Civil Society Forum (NDCSF), a coalition of CSOs from Delta, Edo, Akwa Ibom, Rivers, Bayelsa, Cross River, Ondo and other oil-producing states, has strongly condemned the allocation of N141.36 billion in 13% derivation funds to state governments in the October 2025 FAAC disbursement. The group described the continued payment to state governments as “unconstitutional, unjust, and detrimental to the welfare of host communities.”
In a statement signed by its Coordinator, Comrade Ezekiel Kagbala, and made available to journalists in Warri on Saturday, the Forum insisted that Section 162(2) of the 1999 Constitution clearly positions the 13% derivation as compensation for resource-bearing communities that suffer environmental pollution, land degradation, loss of livelihoods, and other hardships caused by oil and gas exploration.
Despite this constitutional mandate, the Forum lamented that the funds have, for more than three decades, been transferred to state governments, which it accused of mismanagement, lack of transparency, and failure to deliver meaningful development to the communities directly impacted by mineral extraction.
The Forum’s statement followed the announcement by the Federation Account Allocation Committee (FAAC), which said it shared N2.094 trillion for October 2025, including N141.359 billion as 13% derivation for oil-producing states.
According to NDCSF, “nowhere in the Constitution is it stated that the derivation fund must be paid to state governments or routed through them.” The group said it is unacceptable that communities bearing the brunt of environmental devastation still lack basic amenities despite trillions of naira received by states over the years.
“There are no roads, no water, no hospitals, no jobs—nothing to justify the trillions paid,” the statement said.
The Forum accused state governments of diverting derivation funds to political projects, state capital development, and debt servicing while neglecting the communities the funds were intended to support. It maintained that the derivation is “not a bailout for state governments” and should not be used to offset debts or sustain political structures.
As part of its advocacy efforts, NDCSF—working with host community leaders—submitted a position paper to the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) on November 16, 2025. The group demanded the full implementation of the 13% derivation principle and proposed the establishment of 13% Derivation Boards in every oil-producing state.
The Forum also visited the National Assembly on November 17, where Kagbala led a delegation to meet Senator Ned Nwoko, Chairman of the Senate Ad Hoc Committee on Crude Oil Theft and Sabotage. They urged lawmakers to support legislation to restructure the derivation management framework.
“If the National Assembly truly represents the people, they must end this 30-year injustice,” Kagbala said.
NDCSF further appealed to President Bola Ahmed Tinubu to exercise his constitutional authority under the Exclusive Legislative List to ensure direct allocation to oil-bearing communities.
“President Tinubu must create derivation boards that guarantee direct, unhindered benefits to the communities. The suffering must end,” the statement added.
The group maintained that the President has both the constitutional power and moral duty to correct what it called “one of the longest-standing fiscal distortions in Nigeria’s federal system.”
NDCSF concluded by calling on the Presidency, National Assembly, and RMAFC to urgently restructure the payment system to ensure the 13% derivation reaches the oil-producing communities for whom it was created.
“The era of paying derivation funds to state governments must end. The Niger Delta people have suffered enough.”
