Oil revenue: PANDEF seeks 50% derivation for oil-producing states

The Pan-Niger Delta Forum (PANDEF) has called for an increase in the derivation allocation to oil-producing states from the current minimum of 13 per cent to 50 per cent to address environmental damage and years of underdevelopment in the Niger Delta.

The forum also urged the Federal Government and the National Assembly to abolish the onshore/offshore dichotomy in revenue allocation, arguing that offshore oil exploration also affects coastal communities and their sources of livelihood.

PANDEF made the demands in a communiqué issued after a meeting of its Board of Trustees and National Executive Committee in Abuja on Tuesday. The communiqué was read by its National Chairman, Dr Godknows Igali.

The forum said the current derivation rate, provided for under Section 162(2) of the 1999 Constitution, had remained unchanged for more than two decades despite the environmental and developmental challenges facing oil-producing communities.

It said increasing the allocation would enable the states and communities to tackle infrastructure deficits, pollution, health hazards and the social and economic effects of oil and gas exploration.

PANDEF argued that offshore oil operations affect maritime ecosystems and fishing grounds on which coastal communities depend, adding that oil spills and other incidents could damage livelihoods regardless of whether the resources were located onshore or offshore.

It called on the Federal Government, the Revenue Mobilisation, Allocation and Fiscal Commission and the National Assembly to take urgent legislative and constitutional steps to address the issue.

On environmental protection, the forum called for adequate, sustained and transparent funding for the Ogoni clean-up programme and urged the government to extend the remediation exercise to other affected parts of the Niger Delta.

It specifically identified Nembe Creek in Bayelsa, Odidi in Delta and Kula in Rivers as areas requiring urgent attention. It also asked presidential candidates to present practical and time-bound plans for environmental restoration and sustainable development.

The forum welcomed plans to modernise the ports in Warri, Port Harcourt and Calabar, as well as proposals for deep-sea ports in Akwa Ibom, Rivers and Bayelsa states. It urged the Federal Government to establish sustainable funding arrangements for the projects.

PANDEF also described the completion of the 750-kilometre Lagos-Calabar Coastal Highway as non-negotiable, saying it would improve connectivity, boost trade and unlock the economic potential of coastal communities.

The forum called for greater investment in the region’s gas resources, including power generation, mini-LNG plants, LPG and CNG hubs, petrochemicals and other gas-based industries.

It also urged the Federal Government to prioritise modular refineries through appropriate funding, licensing and technical support, while ensuring environmental compliance.

To reduce dependence on oil, PANDEF asked the Federal and six South-South state governments to develop a coordinated agricultural programme focusing on crops such as palm oil, rice and cassava, alongside processing, storage, rural roads and access to affordable financing.

As the 2027 general elections approach, PANDEF urged residents of the South-South to vote peacefully for candidates with credible programmes for the region’s development.

The forum, which reviewed its first decade of activities, also cited the establishment of the South-South Development Commission and its advocacy for infrastructure, maritime development and greater participation in the oil and gas industry among its achievements.