Niger Delta group urges Tinubu to issue Executive Order for 13% derivation fund

The Niger Delta Civil Society Forum (NDCSF) has called on President Bola Tinubu to issue an Executive Order to ensure the legal, constitutional, and people-focused implementation of the 13 per cent Derivation Fund for oil and gas producing communities, particularly Host Communities (HOSCON).

In a statement signed by the Forum’s Coordinator, Ezekiel Kagbala, and made available to journalists in Warri on Wednesday, the NDCSF described the Executive Order as “imperative,” citing persistent failures to administer the Derivation Fund in line with constitutional provisions and its original intent.

“The derivation principle was designed to directly address the developmental challenges and environmental burdens borne by oil and gas producing communities, but existing practices continue to undermine these objectives,” the Forum said.

The NDCSF said it has actively engaged both electronic and print media as well as key federal institutions to press for corrective action. Among these, the Forum has engaged the Revenue Mobilization Allocation and Fiscal Commission, urging it to fulfil its constitutional duty by recommending a lawful, transparent, and people-centred framework for implementing the 13 per cent Derivation Fund.

The Forum further disclosed that it has formally written to President Tinubu, appealing to him to exercise his constitutional authority over matters on the Exclusive Legislative List, specifically Item 39, under which oil and gas resources are classified.

“Since oil and gas resources have historically and constitutionally remained on the Exclusive Legislative List, the President is empowered to act through an Executive Order to correct perceived anomalies in the administration of the Derivation Fund,” the NDCSF stated.

To strengthen fund management, the Forum recommended the creation of a dedicated 13 per cent Derivation Fund structure in each oil and gas producing state, alongside a Presidential Monitoring Committee to ensure transparency, accountability, and effective utilisation for the direct benefit of host communities.

Citing historical precedents, the NDCSF recalled that during former President Shehu Shagari’s administration, when the derivation formula was 1.5 per cent, Derivation Committees and a Presidential Monitoring Committee were established to oversee fund utilisation. Similarly, under General Ibrahim Babangida, when the derivation rate increased to 3 per cent, the Oil Mineral Producing Areas Development Commission (OMPADEC) was created to manage the funds through a specialised federal agency rather than direct state allocations.

“These precedents demonstrate that allocating the 13 per cent Derivation Fund directly to state governments is inconsistent with constitutional intent, historical practice, and principles of equity and justice, as long as oil and gas remain on the Exclusive Legislative List,” the Forum said.

The NDCSF also paid tribute to Chief Dr. Wellington Okirika, popularly known as Mr. 13% Derivation, describing him as a living legend whose lifelong advocacy has kept the struggle for derivation at the forefront of national discourse.

In conclusion, the Forum renewed its call on President Tinubu to promptly issue an Executive Order that will guarantee the 13 per cent Derivation Fund is implemented transparently, constitutionally, and directly for the benefit of oil-producing communities, promoting equity, justice, peace, and sustainable development across Nigeria’s Niger Delta region.