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Monday, November 17, 2025

Why I’m Backing Upward Review, Direct Payment Of Derivation Fund To Oil Host Communities —Mulade

ON our Platform space this week, we are presenting to you the National Coordinator, Centre for Peace and Environmental Justice (CEPEJ), a man who has, for decades been committed to the struggle for a better and safer environment for the Niger Delta Region, Comrade Mulade Sheriff, PhD, as he speaks on the environmental degradation in the region, caused by oil exploration and exploitation, and the urgent need to address the issue of direct payment of derivation fund to Oil Host Communities, it’s upward review, and many more. Excerpts.

Sir you’ve been in the struggle for environmental justice in the Niger Delta Region for almost two decades. How has it been? Shall we share in your success story, and challenges?

Thank you. I thank God for giving me the grace to survive the harsh environment in the course of fighting for a better and safer environment for the Niger Delta Region. For me, the agitation for a sustainable Niger Delta environment is fundamental because of the continuos degradation of the environment as a result of oil exploration/exploitation, and gas fairing that have contaminated the ozone layer and eco-system in the region.

It is sad that, as a result of this, the life span of the people living in the area has been made short, and their means of livelihood badly affected. The entire period of struggle has, therefore, been a challenging one for me; but in all, I thank God for the success we have so far made.

The challenges we had were heightened during the period oil pipeline vandalization  in the region, so much so that it became a national issue. Almost every day, we woke up to hear that pipelines were vandalized; little did those involved in the act know that they were destroying and polluting the environment.

At that point, we advocated that there could be a better, and more result-oriented way of drawing government attention to the needs or demands of the people in the region, rather than taking to oil pipelines vandalization and violence.

Because of my stand on the issue of pipeline vandalization, and the need to refrain from violence, the militants saw me and other environmental agitators as targets and betrayers. Some of us were declared wanted, but by the grace of God, they have since realized that resorting to violence in any form was not the best approach to addressing the Niger Delta environment question. They have seen the positive effects of our struggles to positively change and address the challenges of the region.

I can tell you for sure that, some of the locals are now getting security contracts. For instance, TANTITA Security, of which Chief Tompolo is in charge is doing very well in ensuring security in the region.

As at today, there is relative quality and sustainable environment in the Niger Delta Region because the Federal Government has discovered that the best way to sustain the N/Delta environment is to hand over its security to local security outfits, in collaboration with the conventional security.

This approach has enhanced security in the Niger Delta Region, and I can authoritatively say that, if you travel along the creeks of the region’s water body, it’s very clear and safe; you can drink the water, fetch it to bath with. The implication of this is, the water body is resuscitating itself. And if the Federal Government can sustain this for another twenty years, the fishes and mangroves will be revived.

I say it again, “TANTITA Security and other security groups are doing very well in reviving the environment of the region. The issue of oil pipeline vandalization and distruption of oil installations is now a thing of the past because of their tireless efforts.”

Very recently, you urged President Bola Tinubu, the National Assembly, and the Revenue Mobilization,  Allocation and Fiscal Commission to enforce the direct payment of the 13 percent oil derivation fund to host communities in the N/Delta Region. What informed the call, and what do you think is wrong with the current mode of payment?

Yes, there is something wrong with the current mode of payment and management of the 13 percent derivation fund. During the tenure of late General Sani Abacha as Military Head of State, 3 percent was approved as derivation fund for the Niger Delta Region . The amount was reviewed  upwards to 13 percent by former President Olusegun Obasanjo’s administration.

I recall that while some  states in the region did not see any justification to demand a review of the funds upward, Chief Wellington Okrika had the vision, and fought day and night to ensure the review. He think he deserves to be commended for this. Also the likes of former governor of Delta State, Chief James Onanefe Ibori deserves to be commended for his efforts in ensuring the upward review.

I recall that, in his review of the fund to 13 percent, Chief Olusegun Obasanjo told the benefitting state governors that the fund was meant for the development of oil host communities.

Unfortunately, the fund had to be routed through, and administered through the state governments because, as at then, the oil Host Communities did not have a formidable body known to law, through which the fund could be paid directly to the Host Communities.

I recall that, ex-Gov James Ibori, after several agitations in 2006, sent an executive bill to the House of Assembly for the establishment of the Delta State Oil Producing Areas Development Commission (DESOPADEC). On establishment, he graciously allocated 50 percent of the 13 percent derivation fund to the Commission, strictly for it’s development, while the remaining 50 percent was channeled to other commitments, in order to give them a  sense of belonging and inclusivity. We appreciate it. Other oil producing states like Edo, Ondo and Imo took a cue from Ibori to establish their own oil development commissions.

At the beginning, those of us in the oil communities of Delta State collaborated with Chief Wellington Okrika as foot soldiers to ensure that the DESOPADEC reached out to oil Host Communities and the development and projects were visible, so much so that DESOPADEC became like the third tire of government in Delta State under the Ibori, and Uduaghan administrations.

In your view, what was the original purpose of the 13 percent derivation fund?

I’d said this before. The purpose of the fund was strictly for the development of the oil host communities, whose environment have been damaged by oil exploration and exploitation. When you visit these communities you would see the level of environmental degradation and damage done by the activities of oil multinational companies. It is colossal.

But some persons are of the view that, should the 13 percent derivation fund be paid directly to oil host communities, the crises in the communities may be worsened or escalated, and may lead to anarchy, and even spill over to all parts of the benefitting states in general. What’s your view on this?

Such a view is arrant nonsense. Payment of the 13 percent oil derivation fund directly to host communities will not generate any crisis. I’m glad that today we have the Petroleum Industrial Act (PIA) This Act is recognized by law, and has given some powers and recognition to oil Host Communities.

Under the PIA, every Host Community is registered, and known as Host Community Development Trust, where 3 percent of the operational cost is paid to. Therefore, I  recommend that, the 13 percent fund should be channeled through the registered Host Community Development Trust to develop the host communities.

The initial decision of the Federal Government to pay the 13 percent derivation fund to the benefiting state governments was because, as at that time, there was no known legally registered Development Trust body to which the fund could have been channeled, for direct development of the Host Communities.

As at today, million of of naira have been paid through the Host Community Development Trust, and there has never been a branch or trouble.

It is on the basis of this that I’m suggesting that, in order to ensure that the Oil Host Communities get the full benefit of the 13 percent derivation fund, the Federal Government should have a partnership with construction companies for relevant or people-oriented projects, especially as they may have to do with roads and bridges, that would link the riverine areas to the uplands.

This would open up the riverine ares, and speed up their social-economic development and viability. The Federal Government should pay 70 percent of the 13 percent oil derivation fund directly to the construction companies for any such project, while 30 percent should be paid through the Host Community Development Trust for the development of human capital in the Host Communities.

If you had your way, what areas would you advice that the 13 percent oil derivation funds be channeled to in the Niger Delta Region?

Like I did say, I would be looking at Niger Delta-people oriented projects. I mean, the uppermost and pressing needs of the people; and that would be building durable roads and bridges that would link the interland to the upland, for socio-economic development reasons. When this is done, it would help to reduce migration of people from the riverine to upland. It would also help to reduce crime in the entire Niger Delta Region.

You and I know that because the Niger Delta Region has been neglected for too long, youths in the area became prone to restiveness and crime. Also, because of this, they have been prone to being used by those with negative intentions.

In addition to this, as an Environmentalist, I would recommend that emphasis should be placed on mega projects, not projects that local governments are primarily supported to be engaged in.

Given your involvement and commitment to the struggle for a better and safer environment in the Niger Delta Region, and the level of environmental degradation, do you think the present 13 percent derivation fund is still adequate?

Thank you. Given the level of inflation, the high cost of materials and services, and of course, the dwindling value of the naira to the dollar, the 13 percent derivation fund is due for a upward review. And my humble recommendation is a upward review of the 13 fund to 50 percent.

If the fund is properly utilized for the development of the oil areas Host Communities, I can assure you that, the communities would create a conducive environment for oil multinational companies to operate, and this would in turn help to boost and increase oil and gas production in the country.

Added to this, the communities would have a sense of belonging, and therefore be commitment to protecting oil facilities and installations in their domain.

Some states like Kogi that are not listed as oil producing States had demanded that they be paid oil derivation fund. According to them, for equality sake. What is your position on this?

We hear that oil was discovered in Kogi, Zamfara and Lagos States. By the Petroleum Industrial Act (P.I.A), these States are supposed to be entitled to the 13 percent derivation fund.

But my worry and fear is this. How true is it that oil was discovered in these States, and what is the quantity of production if any? I hope the claim is not a political gimmick.

If it is true that such States are producing oil, the nation’s oil production level would have been higher than the current 1.7 million barrels per day to possibly above 2 million barrels.

It was said that you paid tribute to Chief Dr. Wellington Okrika over his role in ensuring the “birth”  of the 13 percent derivation fund. Why Okrika?

Chief Wellington Okrika was one of the prominent visioneers and leaders, who championed the development of the oil host communities in the Niger Delta Region during the very challenging military regims in this country. He was bold, articulate, and fearless in his call and demand for the development of the oil host communities in the region. He saw the vision, he saw the prospects, and I think honour should be given to who honour is due. Chief Wellington Okrika should be honoured for his good works in the Niger Delta Region.

I want to put it on record that Chief Okrika consistently fought for the upward review of the oil derivation fund to the Niger Delta Region States until it was reviewed upward to 13 % in derivation by the Olusegun Obasanjo administration.

During the 2014 National Confab, he also agitated for an upward review of the oil derivation fund to 25 percent. He created the opportunity for all Niger Delta States to benefit from the oil derivation fund.

It is, however, sad that inspite of all he did, the man has not been given the recognition that is due him by all the benefiting Niger Delta States. It is on the basis of this that I am advocating that, adequate recognition and compensation should be paid to him; if anything else, for his fight to make the 13 percent oil derivation a reality.

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