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Oct 27, 20266 min read

PANDEF demands 50% oil derivation for Niger Delta

PANDEF demands 50% oil derivation for Niger Delta
Galaxy TV · Business desk · Lagos

The Pan Niger Delta Forum (PANDEF) has demanded an increase in the derivation allocation for oil-producing states from 13 per cent to 50 per cent, citing decades of environmental damage and underdevelopment in the region.

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The Pan Niger Delta Forum (PANDEF) has demanded an increase in the derivation allocation for oil-producing states from 13 per cent to 50 per cent, citing decades of environmental damage and underdevelopment in the region.

The forum also declared the completion of the Lagos-Calabar Coastal Highway non-negotiable, urging the Federal Government to accelerate the project and rehabilitate the East-West Road and other deteriorating roads across the Niger Delta.

The demands were contained in a communiqué read by PANDEF National Chairman, Godknows Igali, on Tuesday after a meeting of the organisation’s Board of Trustees and National Executive Committee.

PANDEF said the minimum 13 per cent derivation allocation provided for under the 1999 Constitution had remained unchanged for more than two decades, despite the environmental and economic challenges facing oil-producing communities.

It called on the Federal Government, the Revenue Mobilisation, Allocation and Fiscal Commission and the National Assembly to initiate measures to raise the allocation to at least 50 per cent.

The organisation also called for the abolition of the onshore-offshore dichotomy in revenue allocation, arguing that offshore oil and gas activities could damage marine ecosystems and fishing grounds relied upon by coastal communities.

On environmental restoration, PANDEF expressed concern over pollution in the region after more than six decades of oil and gas exploration. It identified Nembe Creek in Bayelsa State, Odidi in Delta State and Kula in Rivers State as areas requiring urgent intervention.

The forum called for sustained and transparent funding of the Ogoni clean-up programme and urged the government to establish a framework for extending remediation to other polluted communities.

It also challenged presidential candidates in the 2027 elections to present measurable and time-bound plans for environmental restoration and sustainable development in the Niger Delta.

On infrastructure, PANDEF welcomed the Federal Government’s decision to retain the original broad alignment of the 750-kilometre Lagos-Calabar Coastal Highway as a distinct strategic project.

The forum said the highway could improve connectivity among coastal states, stimulate trade and investment, and create opportunities in the blue and marine economy.

It resolved to establish a technical committee to support the Federal Ministry of Works on the project, drawing on previous design work by regional development agencies and professionals.

PANDEF also called for a north-south railway connection linking the South-South to other parts of the country, alongside modernisation of the ports of Warri, Port Harcourt and Calabar.

It urged the government to support proposed deep-sea ports in Ibom, Bonny and Agge with sustainable financing arrangements.

The organisation further advocated greater investment in gas infrastructure, power generation, gas-based industries and modular refineries, saying these could promote industrialisation, create jobs and reduce dependence on imported petroleum products.

It called on the Federal Government and South-South state governments to coordinate agricultural development programmes focusing on crops such as palm oil, rice and cassava, with support for mechanisation, storage, processing and access to markets.

As part of its economic diversification efforts, PANDEF said it would explore establishing a market-based South-South investment fund to mobilise private and institutional capital for regional development.

On the 2027 elections, the forum urged residents to vote peacefully and choose candidates with credible programmes and the capacity to address the region’s development needs.

PANDEF also called on Niger Delta indigenes holding public office, particularly at the federal level, to demonstrate stronger commitment to the region’s collective interests.

The organisation reaffirmed its commitment to working with governments, traditional institutions, businesses and other stakeholders, saying the development of the Niger Delta was inseparable from Nigeria’s overall progress.

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Dele Fasan
Reporter

Reporting for Galaxy TV from Lagos and Abuja, covering energy and national affairs across Nigeria and West Africa