Immediate Past President of the Ijaw National Congress (INC), Professor Benjamin Okaba, has called for an increase in the 13 per cent derivation fund allocated to oil-producing states, describing the current allocation as inadequate and arguing that concerns over its management should not be used to deny the region additional revenue.
Okaba, in an interview with ARISE NEWS on Tuesday, said former President Olusegun Obasanjo’s reported support for increasing the derivation fund represented a significant shift from his earlier position on resource ownership and revenue allocation in Nigeria.
“In the first place, that statement by Obasanjo for us is a very significant U-turn. Coming from an elder statesman well known for so many things. Somebody who has influenced policies in this country in so many directions. Coming up in 2026 to say there should be an increase in the derivation funds from 13 per cent.
“For us, it’s a major victory against the backdrop that the same Obasanjo had mentioned several times that the oil in Nigeria belongs to Nigeria, so downplaying the issue of derivation.
“As you know, the issue of offshore-onshore dichotomy, several infamous policies and legislations like the Land Use Decree and so many others have actually deprived the Niger Delta of benefiting from their God-given resources.
“I think, again, the 13 per cent derivation was first implemented by Obasanjo in 1999. And though the relevant clause in the Constitution, Section 162, subsection 2, talks about review and that the review should not be less than 13 per cent, so for us, it places a moral burden on the present administration to increase the revenue.
“The South-South Governors’ Forum have advocated a minimum of 25 per cent to 50 per cent. PANDEF did advocate 50 per cent. The Ijaw National Congress, as president, we stated our position. It’s up to the 1946 era under the Richards Constitution, where it was 100 per cent. That is the true meaning of federalism.”
On concerns about the utilisation of the fund by state governments, Okaba said the allocation was being used for development projects and maintained that oil-producing states should have the freedom to determine their priorities.
“The money is not enough. Now, let me go back to your question as to whether those monies are being used. In fact, I think we’ve gone beyond that.
“Obasanjo himself alluded to the fact that Governor Diri has shown evidence that such monies are being properly used. I think if it goes to a Rivers State, goes to a Delta State, goes to an Akwa Ibom State, those issues of allegations that, ‘What are you using your money, the money for 13 per cent, for?’ It’s our money. It’s our money.
“The money is properly being used. We own it. We should be given a free hand to define how we use those monies and what issues we need to address.
“And to tell you a very serious thing, there is high justification, the 13 per cent is functional. From the time of Wike as governor of Rivers State, there were many projects embarked upon, to Bayelsa, to Rivers, everywhere. So it’s functional.
“If they can develop the states, again, you should also remember that the Niger Delta area has a peculiar environment. It’s swampy. So to put up a one-kilometre road is equivalent to putting up something three times, five times more. So, yes, the answer is that it’s very functional.”
Responding to concerns that host communities affected by oil spills and environmental degradation were not receiving sufficient benefits from the allocation, Okaba argued that the federal government should also be held accountable for the provisions it makes for host communities.
“You know, we can look at this from several fronts. Even the Petroleum Industry Act that was recently passed by the same federal government, by the same people who would turn around to say, ‘Well, what is happening to those companies? What is being allocated to host communities?’
“Partly 3% of interest. if the federal government cannot show a good example, what do you expect of others?
“In a situation like this, we’re expecting the federal government to attend to the crisis of the host communities and the region. Three per cent is partially increasing to 15 per cent, right?
“Then, secondly, this blanket statement being made that the governors of the South-South are not managing the resources here and there is unfair. It’s unfair. We should deal with one issue before the other. One, provide sufficient funds, and they should be done.”
Asked to identify three projects demonstrating the impact of the derivation fund on host communities, Okaba cited road construction, a proposed bridge in Delta State and hospital projects in Bayelsa and Akwa Ibom states.
“Well, when you talk about very specific projects, we should draw them alongside those that have immediate effect, some that have medium-term effect, and some that have long-term effect.
“I know, for instance, in Delta State, there’s serious development in terms of roads across communities that are far off. In fact, the governor of Delta State is already working on a major bridge that will link the upland to the Ayako Bridge. It’s a battle won by the Delta State government.
“In Bayelsa, as we speak, there’s a road project that is starting from, in fact, road projects to all the senatorial districts, going down to Age. These are called host communities. Going down to Age, going down to several parts of Bayelsa, these are projects that are ongoing, that are of direct benefit to the host community.
“If I talk about hospitals, hospitals are being sited in almost all the local government areas, senatorial and rural communities in Bayelsa State. The same thing happens in Akwa Ibom.
“Today, Because there’s no transparency, so you want to stop or you want to reduce the money? No.”
Okaba questioned whether the criticism reflected an established assessment or the presenter’s personal opinion, before returning to the historical argument for resource derivation.
“Who is saying that? Is that your assessment or my assessment?”
He recalled that derivation had historically allowed regions to retain a larger share of revenue from resources produced within their territories, arguing that the reduction in the allocation to oil-producing areas was unjust.
“I started by saying that the issue of derivation has been part of Nigerian history. In 1946, by the Richards Constitution, it was 100 per cent, and that was through federalism.
“Now, then, I wonder what I was able to give free education to the people of the West. Ahmadu Bello, right? At Ahmadu Bello University, and many other infrastructure, signature infrastructure, were established at that time. One hundred per cent, right? One hundred per cent was there.
“In the same Nigeria, by the Independence Constitution, it was reduced to 50 per cent, right? Where the regions were given 50 per cent, the state 30 per cent, and they had this collective fund, right, and all that. So why must there be a reduction?
“Are you saying that in the days of Ahmadu Bello and the others, were there not some issues in terms of transparency? These things will always be there. I’m not saying that we have perfect utilisation of the project.
“No, but that should not be a justification for it not to increase, because it is injustice, injustice in the same country that when cocoa, groundnuts and other economic items became the operational dynamics, the derivation increased.
“As far as oil was found, we now had, by 1969, a Petroleum Decree stating that it belongs to the federal government. What belongs to the Niger Delta, or what is derived from the Niger Delta, is for everybody.
“So we must, I want you to address that injustice. First, it’s injustice to us that, so I also want to tell you that if tomorrow oil is enough, then we increase the derivation.”
Boluwatife Enome
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