PANDEF demands 50% oil derivation for Niger Delta

By Daniel Abia PORT HARCOURT — The Pan Niger Delta Elders Forum (PANDEF) has called on the Federal Government to increase the derivation allocation to oil-producing states from the current minimum of 13 per cent to 50 per cent, citing environmental degradation and the developmental challenges facing the region. The group also urged the government to invest in modular refineries to complement existing refining facilities, while insisting that the completion of the Lagos-Calabar Coastal Highway and East-West Road projects must not be compromised.

The demands were contained in a 48-point communiqué jointly signed by former Akwa Ibom State Governor, Obong Victor Attah, Chairman of PANDEF’s Board of Trustees, and its National Chairman, Dr. Godknows Boladei Igali. The communiqué followed a virtual meeting of the Board of Trustees and National Executive Committee of the forum on Tuesday. PANDEF noted that Section 162(2) of the 1999 Constitution, as amended, provides for the allocation of not less than 13 per cent of revenue accruing directly from natural resources to states from which the resources are derived.

It argued that the provision had remained unchanged for more than two decades, despite the environmental damage, ecological challenges and developmental burdens borne by oil-producing communities in the Niger Delta. “PANDEF therefore calls for an increase in the derivation allocation from the current minimum of 13% to a minimum of 50%, to enable oil-producing communities and states to address the longstanding developmental deficits, environmental damage, health hazards and social and economic consequences of oil and gas exploration and production,” the communiqué stated.

The forum also challenged presidential candidates of various political parties to demonstrate their commitment to environmental justice by presenting practical, measurable and time-bound plans for cleaning up and restoring affected communities. It said communities across the Niger Delta continued to suffer the consequences of pollution, ecosystem damage and loss of livelihoods after more than six decades of oil and gas exploration and production.

PANDEF called for urgent intervention in affected areas, including Nembe Creek in Bayelsa State, Odidi in Delta State and Kula in Rivers State. It also demanded adequate, sustained and transparent funding for the Ogoni cleanup programme, urging the Federal Government to develop a comprehensive framework for extending environmental remediation to other parts of the Niger Delta.

Coastal highway, East-West Road 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, following reported reconsideration of a proposal to integrate the route into the East-West Road. The forum described the accelerated completion of the coastal highway as non-negotiable, saying the project would improve connectivity among coastal states, stimulate trade and investment, strengthen national integration and unlock economic opportunities.

It also established a high-level technical committee to assist the Federal Ministry of Works on the project, which it said had been under consideration since before Nigeria’s independence. PANDEF further called for the completion of the East-West Road and urged the Federal Government to establish appropriate north-south rail connections to link the Niger Delta with other parts of the country.

The forum also commended President Bola Tinubu’s decision to modernise and upgrade the ports in Warri, Port Harcourt and Calabar. It welcomed approvals for proposed deep seaports, including the Ibom Deep Sea Port in Akwa Ibom State, Bonny Deep Sea Port in Rivers State and Agge Deep Sea Port in Bayelsa State. According to PANDEF, the strategic location of the proposed ports could strengthen trade links with East, Central and Southern Africa and improve access to international shipping routes.

PANDEF seeks investment in modular refineries The forum called for greater investment in agriculture as a central pillar of the Niger Delta’s economic diversification strategy, arguing that the region’s natural resources should be harnessed to create sustainable prosperity and economic value. It also urged the government to support modular refineries to complement large-scale facilities, including the Dangote Refinery and the Port Harcourt, Warri and Kaduna refineries, alongside other private-sector refining projects.

PANDEF said a properly regulated modular refining industry could reduce dependence on imported petroleum products, support local businesses, create jobs and stimulate related industries across the Niger Delta and the wider Nigerian economy. The forum said coordinated investment in infrastructure, environmental restoration, refining and agriculture was necessary to address the region’s longstanding challenges and expand economic opportunities for its people.