The Movement for the Survival of the Ogoni People has accused successive governors in the Niger Delta of mismanaging the 13 per cent derivation funds.
The group called for an amendment of the law so that oil-producing communities benefit directly from the revenue.
MOSOP President, Fegalo Nsuke, made the call on Tuesday in Port Harcourt during activities marking the 31st anniversary of the execution of environmental activist Ken Saro-Wiwa and eight other Ogoni leaders by the military government of the late General Sani Abacha.
Nsuke said the objectives of the derivation fund had not been achieved. He alleged that state governors exercised excessive discretion over its allocation instead of directing the resources to the communities where oil and gas are extracted.
He argued that the sacrifices of Saro-Wiwa and the other Ogoni martyrs would have limited impact on people’s lives unless the laws governing resource benefits specifically addressed the needs of communities that bear the consequences of oil exploration.
Nsuke said: “The idea of derivation funds was to address the underdevelopment in the Niger Delta region. However, the structure of administration of the funds makes it vulnerable to abuse and has left the funds at the discretion of state governors. This needs to be addressed.”
According to Nsuke, the derivation arrangement was meant to address underdevelopment in oil-producing areas, but the funds were not being adequately directed to those communities.
He cited the Ogba/Egbema and Andoni communities in Rivers State. He said these areas, which account for significant oil production, had yet to receive what he considered adequate development funding.
He argued that letting governors decide spending priorities without directly channelling an appropriate share to oil-producing communities had undermined the objectives of the derivation arrangement.
Despite criticising the management of the derivation funds, Nsuke commended the current management of the Niger Delta Development Commission (NDDC). He said it was having a visible development impact across the region.
He urged the commission to sustain and expand its interventions. He noted that the agency emerged from the struggles for justice and development led by Saro-Wiwa and other Niger Delta activists.
Nsuke said: “It is important that the areas from where resources are extracted should get their due rewards and a proportionate injection of the derivation funds. The structure for the administration of the derivation funds needs to change if we must achieve that.
“I am pleased that the NDDC under its present management is making some impressive impacts. MOSOP will encourage them to do more.”
Nsuke blamed persistent poverty in the Niger Delta on what he described as the mismanagement of derivation revenues. He argued that the funds allocated to oil-producing states over the years should have made a significant difference in tackling underdevelopment.
He also called for greater unity among Niger Delta communities, saying collective action would strengthen their ability to demand accountability from state governments.
He said: “It is important for the people to be united and hold their governments to account. I think what comes to the oil-producing states is significant enough to deal with basic issues such as water provision, security and infrastructure, and it is sad that the revenues are being largely mismanaged by the governors because the people are not holding them to account.”
