No Law Says Governors Must Control 13% Derivation Fund: Tinubu Should Correct Derivation Error Before 2027

Editorial

 By Ezekiel Kagbala

As Nigeria moves steadily toward the 2027 general election, President Bola Ahmed Tinubu faces a defining test in the Niger Delta, one that goes beyond politics and strikes at the heart of constitutional justice, resource governance, and public trust.

For more than two decades, the 13 per cent derivation fund has been disbursed through state governments. Yet stakeholders across the Niger Delta continue to raise a fundamental question: where is the law, constitutional provision, or legislative instrument that expressly mandates that the 13 Per cent derivation fund must be paid exclusively to state governments?

This question cannot be dismissed. It deserves serious attention from the Presidency, the National Assembly, and all institutions charged with upholding the Constitution.

The 13 per cent derivation principle is enshrined in Section 162(2) of the 1999 Constitution. The provision guarantees that not less than 13 per cent of revenues accruing directly from natural resources shall be returned under the derivation principle. However, critics of the current framework argue that while the Constitution establishes the right to derivation, it does not specifically direct that the funds must be controlled solely by state governments.

The result is a debate that has lingered unresolved for years while the communities that host the nation's oil wells, gas facilities, pipelines, and export terminals continue to grapple with poverty, unemployment, environmental degradation, and inadequate infrastructure.

The contradiction is difficult to ignore as Billions of naira have flowed into oil-producing states through derivation payments, yet many of the communities from which the wealth originates remain among the least developed in the country.

The Niger Delta Civil Society Forum argues that the current arrangement evolved as an administrative practice rather than an explicit constitutional requirement. Whether one agrees fully with that position or not, the arguement raises important constitutional and policy questions that deserve objective examination.

Adding weight to the debate is the acknowledgement that proposals for a dedicated 13 per cent Derivation Fund Board were previously considered at the federal level. This demonstrates that alternative frameworks have been contemplated before and should not be treated as radical or unprecedented.

President Tinubu now has an opportunity to undertake what previous administrations avoided: a comprehensive review of the derivation fund framework to determine whether it remains faithful to the spirit and intent of the Constitution.

Such a review should not be viewed as an attack on state governments. Rather, it should focus on ensuring that derivation funds achieve their original purpose improving the welfare of the people and communities whose resources contribute significantly to the national economy.

Stakeholders have proposed the establishment of independent Derivation Fund Boards in oil-producing states, supported by a Presidential Monitoring Committee to strengthen transparency, accountability, and oversight. These proposals deserve careful consideration and broad consultation.

The issue is bigger than politics. It is about restoring confidence in public institutions and ensuring that constitutional provisions produce measurable benefits for ordinary citizens. It is about ensuring that communities that bear the environmental and social burden of oil and gas production are not left behind while others benefit from their resources.

As the 2027 elections approach, the Niger Delta is watching closely. Citizens are demanding more than promises; they are demanding fairness, accountability, and evidence that the wealth generated from their lands is improving their lives.

President Tinubu has repeatedly pledged his commitment to economic reform, inclusive development, and the rule of law. 

The 13 per cent derivation fund presents an opportunity to demonstrate that commitment in a meaningful and historic way.

The people of the Niger Delta have waited long enough. If there are constitutional ambiguities, they should be clarified. If there are administrative distortions, they should be corrected. And if the current framework is no longer serving the purpose for which it was created, then reform is not merely desirable it is necessary.

History may well remember the leader who finally ensured that the benefits of Nigeria's natural resources reached the communities from which those resources are drawn. President Tinubu should seize that opportunity.

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