13% Oil Derivation Funds, Deltans Suffer Untold Hardship - Activist

13% Oil Derivation Funds, Deltans Suffer Untold Hardship - Activist

By Ezekiel Kagbala 

The people of Delta State have continued to suffer untold hardship despite the 13% oil derivation funds accruable to the oil-rich State, popular human and environmental rights activist, Comrade Mulade Sheriff has said.

According to Mulade who is also the Ibe-Sorimowei of Ancient Gbaramatu kingdom, an oil-prospecting Kindom in Warri South-West Local Government Area, "the funds do not translate into significant development in oil-producing communities, where residents often experience environmental degradation, poor infrastructure and neglect from goverment at all levels".

The activist alleged that "the sufferings of Deltans are aggravated by those who manipulated the 13 percent derivation to the detriment of others, especially the host communities". 

Mulade made the assertions while speaking with journalists at the Africa for Peace Games village, Ugolo/Osubi, in Okpe Local Government Area on Sunday.

He said, "People of oil producing communities are wallowing in untold hardship as the reality affects all Deltans who should ordinarily benefit massively being part of oil producing states such as Akwa-Ibom, Rivers, Cross River, Edo, Bayelsa, Abia, Ondo, Imo, Anambra, and recently, Lagos State.

"So far, nothing has been done as regards N1.3trillion Naira of the 13% Derivatives paid to the Delta State Government within the eight years tenure of the immediate past governor of the State, Dr. Ifeanyi Okowa.

"Despite the bold steps taken by stakeholders, the case has suffered some setback becuase of political interferenc. But the push is not over.

"The Niger Delta region is still suffering from massive infrastructure decay, widespread poverty and environmental degradation, among numerous others as the 13% Percent derivation funds are not used for the development of oil-producing and bearing communities.  

"The funds are now budget tools being used by most of the states, instead of using the funds for the actual purpose they were meant for".

Mulade spoke further, "Delta State is a major beneficiary of the 13% derivation fund which is a constitutional provision in Nigeria that mandates 13% of the revenue generated from natural resources be allocated to the oil-producing states. 

"As one of the country's most significant oil-producing states, Delta State consistently receives the highest share of the derivation fund among all eligible states. 

"In the first five months of 2025, Delta received ₦185.16 billion, the largest allocation among the nine oil-producing states.

"Between June 2023 and May 2024, Delta State's share amounted to ₦211.69 billion.

"The state also received a significant 29% of the total 13% oil derivation funds distributed across the country from 2015 to 2023. 

"The funds do not translate into significant development in oil-producing communities, where residents often experience environmental degradation, poor infrastructure and abject poverty.

"Delta State had reportedly withheld a large portion of the derivation funds from the Delta State Oil Producing Areas Development Commission (DESOPADEC), the agency responsible for developing oil-producing communities". 

It will be recalled that the Delta State Oil Producing Areas Stakeholders Forum recently dispatched an open letter addressed to President Bola Ahmed Tinubu raising similar allegations.

"Its quite unfortunate that DESOPADEC currently exists in newspapers, paid media houses and has become a tool for the government to compensate political foot soldiers".