Prominent Niger Delta environmentalist and peace advocate, Chief (Comrade) Sheriff Mulade, Ph.D, has urged President Bola Ahmed Tinubu, the National Assembly, and the Revenue Mobilization, Allocation and Fiscal Commission (RMAFC) to restructure the 13% oil derivation policy, so that the funds are paid directly to oil-producing host communities instead of state governments.
In a statement issued in Warri, Mulade who also holds the title of Ibe-Sorimowei of Gbaramatu Kingdom criticized the current payment system, describing it as a miscarriage of justice and development. He accused some state governments of diverting and mismanaging the funds meant to uplift the welfare and living conditions of oil-bearing communities in the Niger Delta.
Mulade condemned what he called decades of misuse and political manipulation of the oil derivation funds by successive state governments. He lamented that despite the trillions of naira disbursed over the years, oil-producing communities remain poor, underdeveloped, and heavily polluted.
The environmental activist stressed that the derivation principle was originally meant to compensate host communities for the environmental damage and economic hardships caused by oil exploration not to become a political revenue stream for state governors.
As a solution, Mulade urged the Federal Government to overhaul the payment structure by establishing a consortium-driven development model, ensuring that funds are channeled directly into tangible infrastructure and human capital projects that benefit the people on the ground.
Mulade noted that adopting such a model would promote transparency, ensure accountability, and guarantee that the Niger Delta region receives real developmental impact from the oil derivation funds.
He also paid tribute to Chief Dr. Wellington Okrika, the Bolowei of Gbaramatu Kingdom, whom he hailed as the pioneer of the 13% derivation struggle. Mulade acknowledged that it was through Okrika’s relentless advocacy that the principle was incorporated into Nigeria’s fiscal framework.
However, he lamented that the true intent of the derivation policy has been betrayed by successive administrations, accusing state governors of siphoning funds meant for oil-producing communities while failing to honor Okrika’s legacy or deliver meaningful development to the neglected creek communities.
Mulade appealed to President Bola Tinubu, the National Assembly, and the Revenue Mobilization, Allocation and Fiscal Commission (RMAFC) to urgently review the 13% oil derivation framework. He suggested that this could include a constitutional amendment or an executive order to ensure that the funds are paid directly to host communities rather than routed through state governments.
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