Ensuring Legal and Constitutional Implementation of the 13% Derivation Fund for Oil and Gas Producing Communities by Emmanuel undie

PRESS STATEMENT
LEGAL AND CONSTITUTIONAL IMPLEMENTATION OF THE 13% DERIVATION FUND TO OIL AND GAS PRODUCING COMMUNITIES
The Niger Delta Civil Society Forum (NDCSF) hereby issues this formal briefing to the press, relevant authorities, and the Nigerian public, highlighting the urgent need for the legal, constitutional, and people-centered implementation of the 13% Derivation Fund for oil and gas producing communities in Nigeria, with a specific focus on the Host Communities (HOSCON).
For an extended period, the Forum has consistently raised national awareness through various media platforms regarding the persistent failure to implement the 13% Derivation Fund in full compliance with the Constitution and the fundamental purpose of the derivation principle. The intent of this fund is to directly address the development needs and environmental challenges faced by oil and gas producing communities.
In pursuit of this advocacy, the Forum has engaged with key federal institutions and agencies, including the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), urging the Commission to fulfill its constitutional mandate by recommending to the President the lawful, people-oriented implementation of the 13% Derivation Fund, with the funds being directed specifically to the oil and gas producing communities via HOSCON.
Today, the Forum formally submitted a letter to His Excellency, President Ahmed Bola Tinubu, respectfully requesting the exercise of his constitutional powers over matters enumerated in the Exclusive Legislative List, particularly Item No. 39, which governs oil and gas resources.
Given that oil and gas resources have historically and constitutionally remained within the Exclusive Legislative List, the Forum calls on Mr. President to issue an Executive Order to ensure the proper, lawful, and constitutional implementation of the 13% Derivation Fund.
In line with our appeal, the Forum recommends:
The establishment of a 13% Derivation Fund structure in each oil and gas producing state.
The creation of a Presidential Monitoring Committee to ensure transparency, accountability, and effective utilization of the Fund for the direct benefit of oil and gas producing communities.
Historical precedents provide further justification for this call. Under the administration of Shehu Shagari, when the derivation formula was set at 1.5%, Derivation Committees were established in oil and gas producing states, and a Presidential Monitoring Committee was instituted to ensure transparency and accountability.
Similarly, during the administration of Ibrahim Babangida, when the derivation formula was increased to 3%, the federal government created the Oil Mineral Producing Areas Development Commission (OMPADEC) to administer the Derivation Fund. Notably, the Fund was not allocated to state governors but managed through a specialized federal body.
These historical precedents underscore that, as long as oil and gas remain within the Exclusive Legislative List, the President is constitutionally prohibited from devolving responsibilities regarding these resources to the Concurrent Legislative List. Thus, the current practice of directly allocating the 13% Derivation Fund to state governors is not only inconsistent with constitutional intent but also with historical practices, as well as the principles of equity and justice.
The Forum also honors Chief Dr. Wellington Okirika, a distinguished advocate for the 13% Derivation Fund and a tireless champion for the rights of oil and gas producing communities. His dedication to this cause has ensured that it remains a key issue on the national agenda.
Therefore, we once again urge Mr. President to promptly intervene by issuing an Executive Order to restore the legal, constitutional, transparent, and people-centered implementation of the 13% Derivation Fund, in order to foster equity, justice, peace, and sustainable development in Nigeria’s oil and gas producing communities.
Signed:
Comrade Ezekiel Kagbala
Coordinator, Niger Delta Civil Society Forum

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