Niger Delta Forum Urges Reform of 13% Derivation Fund

The Niger Delta Civil Society Forum, represented by its coordinator Ezekiel Kagbala, has called on President Bola Ahmed Tinubu to revisit the administration of the 13% derivation fund. The forum emphasizes the need for a presidential board to strengthen accountability and ensure that the fund directly benefits oil-producing communities.

They argue that the current framework, as outlined in the Petroleum Industry Act (PIA), lacks provisions that replace the legal basis for the 13% derivation fund, which is established under Section 162(2) of the 1999 Constitution. The forum criticizes the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) for potentially being unaware of the legal foundation intended by constitutional provisions.

They assert that the PIA's provisions regarding the relationship between the government and international oil companies do not adequately address the needs of host communities, particularly concerning the allocation of operational expenditure for community development.