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

The Pan-Niger Delta Forum (PANDEF) has demanded a significant increase in oil revenue allocation to oil-producing states in the Niger Delta. Currently set at a minimum of 13%, PANDEF is urging the Federal Government and National Assembly to raise the derivation rate to 50%. This change is necessary to address the long-standing environmental damage and underdevelopment plaguing the region.

PANDEF's call for higher allocations stems from the fact that the current rate has remained stagnant for over two decades, despite the challenges faced by oil-producing communities. The forum argues that increasing the allocation would help address infrastructure deficits, pollution, health hazards, and the socio-economic impacts of oil and gas operations.

Furthermore, PANDEF emphasizes that offshore oil exploration affects coastal communities and their livelihoods, particularly through threats to maritime ecosystems and fishing grounds. To tackle these issues, PANDEF demands urgent legislative and constitutional action from relevant authorities. In addition to addressing oil-related concerns, PANDEF also urges the government to enhance environmental protection efforts, specifically by funding and extending the Ogoni clean-up programme and remediation projects in Nembe Creek, Odidi, and Kula.

The forum welcomes port modernization plans and calls for sustainable funding arrangements for deep-sea port projects in Akwa Ibom, Rivers, and Bayelsa states. PANDEF highlights the completion of the 750-kilometre Lagos-Calabar Coastal Highway as a non-negotiable necessity, as it would improve connectivity, boost trade, and unlock economic potential in coastal communities.

The forum also advocates for increased investment in gas resources, including power generation, mini-LNG plants, LPG and CNG hubs, petrochemicals, and other gas-based industries. PANDEF further urges the Federal Government to prioritize modular refineries, ensuring environmental compliance through appropriate funding, licensing, and technical support.

Lastly, as the 2027 general elections approach, PANDEF urges residents of the South-South to vote for candidates with credible development plans for the region.