Pay 13% derivation funds directly to host communities to support rural development -Mulade Tells Tinubu

By Monday Peters, Abuja

A prominent Niger Delta environmental and human rights activist, Chief Mulade Sheriff, PhD, has called on President Bola Ahmed Tinubu to stop paying the 13% oil derivation funds directly to state governments. Instead, he suggests channeling the funds into federally coordinated mega development projects in the Niger Delta region.

Chief Mulade argued that the current system has failed to deliver meaningful development to oil-bearing communities due to corruption, mismanagement, and diversion of funds by some state governments. Despite trillions of naira disbursed as derivation funds, many Niger Delta communities remain plagued by poverty, environmental degradation, unemployment, and lack of basic infrastructure.

He proposes redirecting the funds into transparent, independently monitored projects focusing on coastal protection, environmental remediation, roads, bridges, healthcare, education, and youth employment. Chief Mulade emphasizes that this move would reduce insecurity, oil theft, and pipeline vandalism, while creating employment opportunities for the youth.

The activist urges the National Assembly to support policy reforms for effective utilization of derivation funds and expresses confidence in President Tinubu’s administration to redefine Niger Delta’s development and restore public trust in oil revenue management.