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Pan Niger Delta Forum Seeks 50% Derivation Share for Oil-Producing States

PANDEF also wants 2027 presidential candidates to set time-bound cleanup and restoration plans for communities affected by oil and gas operations.

Updated 2 min read
An oil sheen marks water beside mangroves along Nembe Creek in Bayelsa State, Nigeria. / EconoTimes.ai
An oil sheen marks water beside mangroves along Nembe Creek in Bayelsa State, Nigeria. / EconoTimes.ai

The Pan Niger Delta Forum wants Nigeria to raise the minimum derivation share for oil-producing states to 50% from 13% and urged presidential candidates to set cleanup plans for affected communities before the 2027 election.

PANDEF made the requests after a meeting Tuesday, Oct. 27. Section 162(2) of the Constitution sets a minimum 13% derivation share for natural-resource revenue paid into the Federation Account. The forum’s proposed 50% floor concerns oil-producing states specifically, while the constitutional rule applies to natural-resource revenue more broadly.

PANDEF says the constitutional minimum has remained unchanged for more than two decades.

The forum links pollution and health concerns, along with damage to ecosystems and livelihoods, to oil and gas activity spanning more than 60 years. It says a larger share would help oil-producing communities and states address environmental and health burdens as well as development needs.

PANDEF named Nembe Creek in Bayelsa State, Odidi in Delta State and Kula in Rivers State for urgent environmental attention. It also called for ongoing, transparent financing for the Ogoni cleanup and a plan to extend remediation to other parts of the Niger Delta.

The forum wants the federal government, the Revenue Mobilisation, Allocation and Fiscal Commission, and the National Assembly to resolve the dispute over how the onshore/offshore distinction affects revenue sharing. PANDEF’s Board of Trustees and National Executive Committee met in Abuja and virtually on Oct. 27, when the forum also asked presidential hopefuls to make cleanup and restoration plans practical, measurable and time-bound.

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