Rights Group Seeks Direct Payment of Derivation Funds to Host Communities, Accuses Govs of Manipulation

By Monday Peters, Abuja

The Niger Delta Civil Society Forum (NDCSF) has strongly condemned the payment of N141.36 billion in 13% derivation funds to state governments, labeling it “unconstitutional, unjust, and detrimental to oil-producing communities”.

According to the Forum, Section 162(2) of the 1999 Constitution mandates the 13% derivation as compensation for resource-bearing communities suffering environmental degradation and socio-economic hardships due to oil and gas exploration.

The NDCSF argued that state governments have mismanaged these funds, neglecting the communities’ needs, and calls for direct allocation to oil-producing communities. “Nowhere in the Constitution is it stated that funds must be paid to state governments,” the Forum emphasizes.

The group has submitted a position paper to the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) and met with lawmakers, urging support for legislation restructuring the derivation fund’s management.

The NDCSF appeals to President Bola Ahmed Tinubu to intervene, create derivation boards, and ensure direct benefits to oil-producing communities, describing the current system as a “gross violation of socio-economic rights”.

The Forum demands an end to paying derivations to state governments, calling it a “30-year injustice” and urging the Presidency, National Assembly, and RMAFC to review and restructure the payment framework.