The Pan Niger Delta Forum has demanded an increase in the derivation allocation to oil-producing states. The demand is to raise it from the current 13 per cent to 50 per cent. PANDEF also called for the abolition of the onshore/offshore dichotomy in revenue allocation. The demands were contained in a communiqué after meetings of its Board of Trustees and National Executive Committee in Abuja and virtually. The national chairman, Godknows Igali, read the communiqué.
The 13 per cent derivation principle is enshrined in the 1999 Constitution. It followed years of agitation by oil-producing states. The allocation has remained unchanged for over two decades. Meanwhile, the Niger Delta has suffered environmental degradation, oil spills and gas flaring. Communities depend on fishing and farming, which pollution has damaged. In 2023, PANDEF asked for a review. The government did not act. The current demand is the latest in a long campaign.
PANDEF said the allocation has not kept pace with the damage. “PANDEF calls for an increase in the derivation allocation from the current minimum of 13% to a minimum of 50%,” the communiqué said. The increase would enable oil-producing communities to address developmental deficits, environmental damage and health hazards. The forum also wants the onshore/offshore dichotomy abolished. It argued that offshore oil operations affect coastal communities’ fishing grounds and ecosystems. It said oil spills from offshore activities can devastate coastal livelihoods. It urged the National Assembly, the federal government and the Revenue Mobilisation, Allocation and Fiscal Commission to initiate legislative and constitutional measures.
PANDEF also called for sustained funding of the Ogoni clean-up. It identified Nembe Creek in Bayelsa, Odidi in Delta and Kula in Rivers as areas needing urgent attention. It said the Lagos-Calabar coastal highway must be completed. It called for a north-south rail connection. The forum said it would constitute a technical committee to assist the Ministry of Works on the coastal highway.
Winners: Oil-producing states, if the allocation rises. Niger Delta communities, if remediation is funded. PANDEF, which asserts regional interests. Losers: Non-oil states, which would receive a smaller share of federation revenue. The federal government, which faces pressure. The RMAFC, which must review the formula. Taxpayers, if the change requires constitutional amendment. The oil industry, if higher derivation costs reduce investment.
Bottom Line: Thirteen per cent has not changed in decades. The damage has. PANDEF wants 50 per cent. The demand is old. The grievance is real. The National Assembly must decide. The constitution can be amended. The question is whether the political will exists.