Governors of Oil-Producing States Demand Review of 13% Derivation Formula

Governors of the six core Niger Delta states used a closed-door meeting in Port Harcourt on Sunday to renew calls for an upward review of the 13% derivation formula, arguing that the current allocation fails to account for decades of ecological damage and infrastructure decay in producing communities.

"We are not asking for charity, we are asking for what is constitutionally fair," one governor told reporters after the meeting, which was convened under the aegis of the Body of Niger Delta Governors. The communique issued afterward called on the National Assembly to revisit Section 162 of the 1999 Constitution as part of the ongoing conversation around fiscal federalism.

Analysts say the timing of the renewed push is significant, coming just months after the region recorded a modest uptick in crude output following the deployment of additional pipeline surveillance contracts. Producing states argue that a larger share of derivation revenue would allow them to fund shoreline protection, resettlement of displaced fishing communities and diversification away from oil.

Federal officials have historically resisted upward revisions, citing the needs of non-oil-producing states under the existing revenue allocation formula. The debate is expected to resurface when the Revenue Mobilisation Allocation and Fiscal Commission reconvenes its review committee later this year.

Civil society groups in the region have cautiously welcomed the renewed push but insist that any additional derivation revenue must come with stronger accountability mechanisms at the state level, pointing to a history of derivation funds not translating into visible development in host communities.