Obasanjo, Diri demand more oil revenue for Niger Delta
Former President Olusegun Obasanjo and Bayelsa Governor Douye Diri have renewed calls for an increase in the 13% derivation for oil-producing states. Read More:…
The 13% derivation formula, enshrined in Nigeria's constitution, mandates that oil-producing states receive at least 13% of revenue generated from natural resources extracted within their territory. It was introduced to address decades of agitation from Niger Delta communities over environmental degradation and neglect despite the region's outsized contribution to national oil wealth, but many leaders from the area have long argued the figure is too low given the scale of ecological damage from oil spills and gas flaring, and the underdevelopment that persists despite the derivation payments.
Calls to raise the derivation percentage resurface periodically, often tied to broader debates about restructuring and resource control in Nigeria's federal system. Critics, however, point to allegations of mismanagement and lack of transparency in how Niger Delta states have spent derivation funds already allocated to them, arguing that accountability — not just a bigger share — should be central to the conversation. Premium Times' framing highlights this tension around spending scrutiny, while Punch focuses more narrowly on the renewed demand itself, with neither report detailing a concrete timeline or mechanism for any proposed increase.