PANDEF Demands 50% Oil Derivation, Rejects 13% Allocation

• Forum sets up technical committee to work with works ministry on Lagos-Calabar Coastal Highway  

•Seeks abolition of onshore/offshore dichotomy

Sunday Aborisade in Abuja

Pan Niger Delta Forum (PANDEF) has demanded an increase in the minimum derivation allocation to oil-producing states from 13 per cent to 50 per cent, insisting the current arrangement is inadequate to address the environmental devastation and development challenges confronting communities in the Niger Delta.

The socio-political organisation also called on the federal government; Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC); and the National Assembly to urgently abolish the onshore/offshore dichotomy in revenue allocation.

It said coastal communities suffered the consequences of offshore petroleum operations, irrespective of where the oil and gas resources were located.

The demands were contained in a communiqué issued yesterday in Abuja at the end of a meeting of PANDEF’s Board of Trustees and National Executive Committee, attended by former governors, former ministers, traditional rulers, political leaders, and other stakeholders representing the six South-south states of Akwa Ibom, Bayelsa, Cross River, Delta, Edo, and Rivers.

The communiqué, read by PANDEF’s National Chairman, Ambassador Godknows Igali, said the existing derivation arrangement had remained unchanged for more than two decades, despite the enormous environmental, ecological and developmental burdens borne by oil-producing communities.

Citing Section 162(2) of the 1999 Constitution, as amended, the forum said the provision for a minimum of 13 per cent derivation had failed to adequately address the consequences of oil and gas exploration and production in the region.

The communique said, “The meeting calls for an increase in the derivation allocation from the current minimum of 13 per cent to a minimum of 50 per cent, to enable oil-producing communities and states to address the longstanding developmental deficits, environmental damage, health hazards and social and economic consequences of oil and gas exploration and production.”

PANDEF maintained that the increased allocation was necessary to enable the oil-producing states to confront the cumulative effects of decades of petroleum exploration, including pollution, damaged ecosystems, deteriorating livelihoods and inadequate infrastructure.

The forum also urged the National Assembly, in collaboration with the federal government and RMAFC, to initiate the necessary legislative and constitutional measures to end the onshore/offshore dichotomy.

It stated that offshore oil and gas operations were conducted within the maritime environment and fishing grounds upon which coastal communities depended for their livelihoods.

It said, “Consequently, oil spills and other incidents arising from offshore petroleum activities can have devastating effects on marine ecosystems, fishing activities and the economic well-being of coastal populations, irrespective of whether the affected resources are located onshore or offshore.”

On infrastructure, PANDEF announced the establishment of a high-level technical committee to work with the Federal Ministry of Works on the Lagos-Calabar Coastal Highway, which it described as a strategic project with far-reaching implications for the economic integration and development of Nigeria’s coastal communities.

The forum welcomed the federal government’s decision to retain the original broad alignment of the 750-kilometre highway as a distinct legacy infrastructure project following the reported reconsideration of an earlier proposal to integrate the route into the East-West Road.

It said the coastal highway had a long historical background predating Nigeria’s independence and had featured prominently in national discussions on connectivity and economic development across the Niger Delta.

According to the communiqué, previous design work undertaken by the Oil Minerals Producing Areas Development Commission (OMPADEC) and the Niger Delta Development Commission (NDDC), alongside the expertise of professionals from the region, could assist the works ministry in advancing the project.

The communique stated, “The meeting also noted that relevant design work had since been undertaken by OMPADEC and the NDDC, which, along with relevant professionals from the area, could assist the Federal Ministry of Works in advancing the project alongside the East-West Road and the other dilapidated roads in the area.

“PANDEF therefore decided to set up a high-level technical committee to assist the Federal Ministry of Works for the road project.”

The organisation insisted that the accelerated and successful completion of the highway was non-negotiable, citing its potential to improve connectivity among coastal states, stimulate trade and investment, strengthen national integration, and unlock opportunities in the blue and marine economy.

It also called for the establishment of appropriate north-south rail connections to link the region with the rest of the country.

On environmental restoration, PANDEF said communities across the Niger Delta continued to suffer the consequences of more than six decades of oil and gas exploration, calling for urgent intervention in Nembe Creek in Bayelsa State, Odidi in Delta State, and Kula in Rivers State.

It demanded adequate, sustained, and transparent funding for the Ogoni clean-up programme and urged the federal government to develop a comprehensive framework for extending environmental remediation to other affected communities.

The forum challenged presidential candidates in the 2027 general election to demonstrate their commitment to environmental justice by presenting practical, measurable, and time-bound plans for cleaning up and restoring polluted communities.

On maritime infrastructure, PANDEF commended President Bola Tinubu’s decision to modernise and upgrade the ports of Warri, Port Harcourt, and Calabar.

It also welcomed approvals for proposed deep-sea ports at Ibom in Akwa Ibom State, Bonny in Rivers State, and Agge in Bayelsa State.

The organisation, however, urged the federal government to establish a sustainable financing framework for the projects comparable to arrangements adopted for major port infrastructure around the Lagos corridor.

It said the strategic location of the South-south ports could strengthen trade with East, Central and Southern Africa, improve access to the Indian Ocean, and enable Nigeria to benefit more fully from the African Continental Free Trade Area.

On economic diversification, PANDEF called for accelerated investment in gas infrastructure, power generation, mini-liquefied natural gas facilities, liquefied petroleum gas and compressed natural gas hubs, petrochemicals and other gas-based industries.

The forum stated that the Niger Delta held more than 209 trillion standard cubic feet of natural gas reserves, stressing that their development could promote industrialisation, improve electricity supply, create jobs and stimulate economic growth.

It also urged the federal government to revive plans for modular refineries through appropriate funding, licensing, technical support and environmental compliance frameworks.

According to PANDEF, properly regulated modular refineries would complement existing and proposed large-scale refining facilities, reduce dependence on imported petroleum products, support local enterprise, and generate employment.

The meeting called on the federal and state governments to establish a coordinated agricultural development programme focusing on palm oil, rice, cassava, vegetables and other crops suited to the region’s ecological conditions.

It identified improved seedlings, mechanisation, irrigation, rural roads, storage facilities, agro-processing, affordable financing and reliable markets as essential to transforming agriculture into a major pillar of the Niger Delta’s economy.

PANDEF also disclosed plans to explore a regional investment fund to pool resources from individuals, businesses, and institutions for investments in critical economic sectors, enterprise development, infrastructure, and job creation.

Reviewing its first decade of existence, the forum highlighted its advocacy efforts, including the establishment of the South-South Development Commission, the commencement of activities at the Nigerian Maritime University, Okerenkoko, and the upgrading of the Maritime Academy of Nigeria, Oron.

It also commended its leadership’s contributions to the restoration of peace in Rivers State and its continuing efforts to resolve the dispute over oil wells between Akwa Ibom and Cross River states.

As Nigeria approaches the 2027 general election, PANDEF urged residents of the South-south to exercise their civic responsibilities peacefully and vote according to their conscience.

It called on political leaders and public officeholders from the Niger Delta, particularly those serving at the federal level, to demonstrate greater commitment to the region’s collective interests.

The communiqué stated, “The forum reaffirmed that the development of the Niger Delta is inseparable from the development of Nigeria and urged all relevant authorities to translate policy commitments and announced projects into tangible outcomes for the country.”