The Pan-Niger Delta Forum (PANDEF) has called for a significant increase in the derivation allocation to oil-producing states in Nigeria, seeking to raise it from the current 13 per cent to 50 per cent. This demand aims to address the environmental damage and years of underdevelopment in the Niger Delta region. According to PANDEF, the current derivation rate, as provided under Section 162(2) of the 1999 Constitution, has remained unchanged for over two decades despite the environmental and developmental challenges facing oil-producing communities.
PANDEF also urged the Federal Government and the National Assembly to abolish the onshore/offshore dichotomy in revenue allocation. The forum argued that offshore oil exploration affects coastal communities and their sources of livelihood, just like onshore exploration. This dichotomy, PANDEF claims, is no longer relevant as oil spills and other incidents can damage livelihoods regardless of whether the resources are located onshore or offshore. By abolishing this dichotomy, PANDEF seeks to ensure that coastal communities affected by offshore oil operations receive fair compensation.
The demands were made in a communiqué issued after a meeting of PANDEF's Board of Trustees and National Executive Committee in Abuja. The communiqué was read by PANDEF's National Chairman, Dr. Godknows Igali. The forum emphasized that increasing the allocation to 50 per cent would enable states and communities to tackle infrastructure deficits, pollution, health hazards, and the social and economic effects of oil and gas exploration. This, PANDEF believes, is crucial for sustainable development in the Niger Delta region.
PANDEF also called for adequate, sustained, and transparent funding for the Ogoni clean-up programme. The forum urged the government to extend the remediation exercise to other affected parts of the Niger Delta, specifically identifying Nembe Creek in Bayelsa, Odidi in Delta, and Kula in Rivers as areas requiring urgent attention. Furthermore, PANDEF asked presidential candidates to present practical and time-bound plans for environmental restoration and sustainable development in the region.
The forum welcomed plans to modernize ports in Warri, Port Harcourt, and Calabar, as well as proposals for deep-sea ports in Akwa Ibom, Rivers, and Bayelsa states. However, PANDEF urged the Federal Government to establish sustainable funding arrangements for these projects to ensure their successful implementation. Additionally, the forum described the completion of the 750-kilometer Lagos-Calabar Coastal Highway as non-negotiable, citing its potential to improve connectivity, boost trade, and unlock the economic potential of coastal communities.
PANDEF also emphasized the need for greater investment in the region's gas resources, including power generation, mini-LNG plants, LPG and CNG hubs, petrochemicals, and other gas-based industries. The forum urged the Federal Government to prioritize modular refineries through appropriate funding, licensing, and technical support, while ensuring environmental compliance. To reduce dependence on oil, PANDEF called for a coordinated agricultural programme focusing on crops such as palm oil, rice, and cassava, alongside processing, storage, rural roads, and access to affordable financing.
As the 2027 general elections approach, PANDEF urged residents of the South-South to vote peacefully for candidates with credible programmes for the region's development. The forum, which reviewed its first decade of activities, cited the establishment of the South-South Development Commission and its advocacy for infrastructure, maritime development, and greater participation in the oil and gas industry among its achievements.
Key points
- PANDEF demands 50% derivation for oil-producing states to address environmental damage and underdevelopment.
- The forum urges the abolition of the onshore/offshore dichotomy in revenue allocation.
- PANDEF calls for adequate funding for the Ogoni clean-up programme and extension to other affected areas.
