Stop Paying 13% Oil Derivation to State Governments, Channel Funds To Mega Projects – N-Delta Activist, Mulade Tells Tinubu

Renowned Niger Delta environmental and human rights activist, Chief Mulade Sheriff, PhD, has called on President Bola Ahmed Tinubu, GCFR, to halt the current practice of paying the 13 per cent oil derivation funds directly to oil-producing state governments, advocating instead for the funds to be channelled into federally coordinated mega development projects across the Niger Delta.

Mulade who is the Ibe-Serimoowei of oil rich ancient Gbaramtu Kingdom in Delta State, made the call in a statement issued on Wednesday January 7th, 2026, argued that the existing system has failed to deliver meaningful development to oil-bearing communities, largely due to corruption, mismanagement, and diversion of funds by some state governments.

According to him, despite trillions of naira disbursed as derivation funds over the years, many Niger Delta communities remain plagued by poverty, environmental degradation, unemployment, and lack of basic infrastructure.

“The 13 percent derivation fund was designed to bring development and relief to oil-producing communities, but sadly, that objective has been largely defeated,” Chief Mulade said. “What we see today is massive diversion, mismanagement and misappropriation of oil derivation funds, with little or no impact on the lives of the ordinary people in the creeks and host communities.”

He urged President Tinubu to adopt a bold policy shift by redirecting the derivation funds into well-structured, transparent, and independently monitored mega projects, particularly in critical areas such as coastal protection, environmental remediation, roads, bridges, healthcare, education, and youth employment.

Chief Mulade suggested that such projects should be executed through special-purpose development frameworks with strong community participation, credible oversight mechanisms, and clear performance benchmarks to ensure value for money.

“This administration has a historic opportunity to correct decades of injustice and waste in the Niger Delta,” he said. “Rather than sharing money that disappears into private pockets, let us invest in visible, life-changing projects that will stand the test of time and create employment opportunities for the youths”

The renowned activist further noted that insecurity, oil theft, and pipeline vandalism in the region are closely linked to underdevelopment and neglect, stressing that strategic investment in infrastructure and human capital would significantly reduce restiveness and criminality.

Chief Mulade also called on the National Assembly to support constitutional and policy reforms that would allow for more effective utilisation of derivation funds in the interest of oil-bearing communities.

He expressed confidence that President Tinubu’s administration, if guided by transparency and political will, could redefine Niger Delta's development and restore public trust in the management of oil revenues.