The Movement for the Survival of the Ogoni People (MOSOP) has accused governors of oil-producing states in the Niger Delta of mismanaging the 13.5 per cent derivation funds, alleging that their failure to channel the resources into the development of oil-bearing communities has perpetuated poverty and underdevelopment in the region.
The organisation has consequently called for an amendment to the law establishing the derivation funds to ensure that the benefits of oil production are directly channelled to communities from which the resources are extracted rather than being left at the discretion of state governors.
MOSOP President, Fegalo Nsuke, made the call while delivering his address at the 31st memorial 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 lamented that decades after the sacrifices of Saro-Wiwa and other Niger Delta activists, the region remained trapped in poverty despite the enormous revenues accruing to oil-producing states.
He argued that the governors had failed to justify the huge resources allocated to their states through the derivation principle, insisting that the money had not translated into meaningful development in the communities bearing the environmental and social costs of oil exploration.
According to him, the original intention of the derivation fund was to address the peculiar developmental challenges of oil-producing areas, but the present administrative arrangement has made it susceptible to abuse and diversion from its intended purpose.
“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,” he said.
The MOSOP president maintained that the struggles of Saro-Wiwa and other martyrs would amount to little if the people of the oil-producing communities continued to suffer deprivation while the revenues generated from their land were controlled and spent according to the priorities of state governments.
Citing the Ogba/Egbema communities of Rivers State, particularly Ndoni, Nsuke said the area contributes significantly to the state’s oil revenue but receives little corresponding investment in infrastructure and other basic amenities.
He regretted that communities responsible for generating substantial revenue were often neglected because governors retained control over the allocation of derivation funds without any effective mechanism compelling them to prioritise the needs of the producing areas.
Nsuke said the situation was a clear contradiction of the principle of derivation, which was introduced to ensure that communities and states bearing the consequences of resource extraction benefited meaningfully from the wealth generated.
He insisted that the law should be amended to guarantee direct and proportionate investment of derivation revenues in the areas where the resources originate.
The MOSOP leader also blamed the persistent poverty, poor infrastructure and lack of basic amenities in the Niger Delta on the failure of successive state governments to account adequately for the enormous revenues received over the years.
He noted that the cumulative 13.5 per cent derivation allocations to oil-producing states since the introduction of the policy should have been sufficient to make significant improvements in water supply, security, roads and other essential infrastructure across the region. “It is important for the people to be united and hold their governments to account. We 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,” he added.
Nsuke, however, commended the current management of the Niger Delta Development Commission (NDDC) for what he described as its visible interventions in the region, urging the commission to sustain and expand its development efforts.
He described the NDDC as one of the institutions that emerged from the struggles of Saro-Wiwa and other Niger Delta activists, expressing satisfaction that the commission was beginning to make a difference under its present leadership.
“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.
“We are pleased that the NDDC under its present management is making some impressive impacts. MOSOP will encourage them to do more,” he said.
He called for greater solidarity among Niger Delta communities, stressing that regional unity was necessary to compel governors to account for the resources allocated to their states and ensure that oil-producing communities were no longer denied the benefits of their natural wealth.
Nsuke maintained that the people of the Niger Delta must move beyond commemorating the sacrifices of their heroes to demanding concrete accountability from those entrusted with managing the region’s resources.
