Niger Delta Group Urges Tinubu to Reform 13% Derivation Fund Management

A coalition from the Niger Delta has called on President Bola Tinubu to take decisive action on the management of oil revenues by issuing an executive directive to address concerns surrounding the 13 per cent derivation fund.

In a formal communication to the presidency, the group argued that the current handling of the fund does not align with constitutional provisions. They maintained that oil and gas resources fall strictly under federal authority, stressing that only the President has the legal backing to enforce proper administration of such revenues.

The organisation expressed dissatisfaction with the longstanding practice of allowing state governments to control the funds, describing it as inconsistent with the original intent of the derivation principle. According to them, this approach has weakened accountability and limited the direct benefits meant for oil‑producing communities.

To correct what it described as structural flaws, the group proposed the creation of dedicated boards to oversee the fund in oil‑producing states, alongside a federal monitoring body to ensure transparency. They emphasised that such reforms would help guarantee that the resources are used for the development of host communities.

The appeal also highlighted that the derivation fund is meant to be set aside from national revenue before distribution among different tiers of government, insisting that proper implementation would promote fairness and strengthen trust in the system.