Niger Delta Deserves More than 13% Derivation, Says Obasanjo, Flags-off CDU at $1bn Azikel Refinery
• Eruani: project will kick-start region’s industrialisation •Gov Diri: refinery justifies agitation against oil injustice Former President Olusegun Obasanjo on Monday advocated an increase in the 13 per cent derivation
The 13 per cent derivation principle, enshrined in Nigeria's constitution, mandates that oil-producing states receive at least that share of revenue from petroleum extracted within their territory, as compensation for the environmental and social costs of hosting oil and gas operations. For decades, leaders and activists from the Niger Delta have argued the figure is inadequate given the scale of pollution, infrastructural decay and economic dislocation the region has suffered despite being the source of the bulk of Nigeria's oil wealth, making renewed calls for a higher percentage a recurring and politically sensitive issue in national revenue-allocation debates.
The commissioning of the crude distillation unit (CDU) at the Azikel refinery in Bayelsa State is being presented by officials as a milestone in efforts to build local refining capacity and drive industrialisation in a region long associated with raw crude extraction rather than value-added processing. Coverage across outlets is largely consistent on the core facts — Obasanjo's remarks on derivation and the refinery's symbolic significance — with ThisDay and Tribune Online carrying near-identical framing, including quotes attributed to Bayelsa officials linking the project to grievances over "oil injustice." Details such as the refinery's full production capacity, timeline to completion, and specific plans for any derivation increase have not been reported.