Niger Delta Deserves More Than 13% Derivation, Says Obasanjo

Obasanjo spoke on Monday during the flag-off of the Crude Distillation Unit (CDU) of the $1 billion Azikel Refinery at Obunagha, Yenagoa Local Government Area of Bayelsa State.

He said oil-producing states and communities had yet to receive a fair deal from the nation's oil wealth, stressing that the 13 per cent derivation could be increased through continued engagement.

“Thirteen per cent is the beginning. You can continue to talk,” the former president said, while commending Bayelsa State Governor Douye Diri for utilising the state's available resources to execute development projects.

Bayelsa Governor Diri also criticised the existing derivation arrangement, insisting that the Niger Delta deserved a greater share of the resources extracted from its land.

Diri argued that oil-producing communities should become active participants in the petroleum industry rather than remain largely excluded from the benefits of their natural resources.

He described the current 13 per cent derivation as inadequate and faulted the Land Use Act, which he said contributed to the region's longstanding grievances over resource ownership and control.

The governor maintained that the Niger Delta was not seeking to take everything but wanted a fair opportunity to participate in decisions concerning its God-given resources.

Meanwhile, Azikel Group President, Dr. Azibapu Eruani, said the refinery would stimulate industrialisation in Bayelsa State and the wider Niger Delta.

The project is expected to produce 2.5 million litres of fuel and two million litres of diesel daily, among other petroleum products.

Obasanjo challenged Eruani to complete the refinery within 12 months, describing the project as an important step towards strengthening indigenous participation in the petroleum industry.

The development has renewed calls for a review of the 13 per cent derivation formula and a more equitable distribution of oil wealth, particularly to communities that bear the environmental and socioeconomic consequences of petroleum exploration.

For the Niger Delta, the central issue remains whether increased derivation will translate into tangible development, environmental restoration and direct benefits for oil-producing communities.

FocalPoint Reports