KEY POINTS
- Niger Delta communities want governors to release part of the 13% derivation fund directly to community trusts for development.
- Regulators say 155 trusts have been formed and 663 projects are already underway under the PIA framework.
- Authorities acknowledge challenges such as disputes and accountability issues but promise reforms and stronger oversight
Oil-producing communities in the Niger Delta have renewed calls for state governors to release part of the 13 percent oil derivation allocation directly to them, saying the funds were originally meant to improve life in the areas where crude oil is produced.
The demand was voiced during a town hall meeting involving the Nigerian Upstream Petroleum Regulatory Commission, oil companies, and community representatives in Rivers State.
Leaders of host communities argued that despite decades of oil extraction, many of their towns still lack basic infrastructure, employment opportunities, and environmental protection.
They insisted that channeling part of the derivation funds directly into community trusts would help ensure visible development projects.
Community Leaders Accuse States of Politicising Funds
Speaking at the meeting, the national president of the Host Communities of Nigeria Producing Oil and Gas, Dr. Benjamin Style Tamaranebi, said state governments have treated the derivation fund as political revenue instead of development support for oil-bearing communities.
He stressed that the fund was never designed for state governments alone, but as a mechanism to improve the living conditions of those whose land produces the nation’s oil wealth. According to him, the introduction of the Petroleum Industry Act now provides a structure that should make it easier to channel money directly to community development trusts.
Tamaranebi also warned leaders of these trusts not to misuse funds, reminding them that the law clearly states that only five percent can be spent on administration, while 75 percent must go into projects and 20 percent into investments.
Representatives of the Commission said significant progress has been made since the PIA came into force. According to officials speaking on behalf of Chief Executive Oritsemeyiwa Eyesan, 155 Host Community Development Trusts have already been registered across the Niger Delta.
Out of these, 79 have received funding from oil companies, which are required under the law to contribute three percent of their operating expenses to host communities.
