By Peter Onyekachukwu 
By Peter Onyekachukwu
Renowned Niger Delta environmental and human rights activist, Chief Mulade Sheriff, has urged President Bola Ahmed Tinubu to rethink the current oil derivation formula by redirecting the 13 per cent derivation funds from direct disbursement to oil-producing states into federally coordinated mega development projects across the Niger Delta.
Mulade, the Ibe-Serimoowei of the oil-rich Gbaramtu Kingdom in Delta State, said decades of paying derivation funds directly to state governments have failed to deliver meaningful development to host communities, despite trillions of naira released over the years.
In a statement issued on Wednesday, January 7, 2026, the activist argued that the continued underdevelopment of oil-bearing communities shows that the original intent of the derivation policy has been largely undermined by mismanagement, diversion and lack of accountability.
“Despite the huge sums paid as 13 per cent derivation, many oil-producing communities still lack basic infrastructure such as good roads, clean water, quality healthcare and functional schools,” Mulade said.
“The derivation fund was meant to bring relief to host communities, but that purpose has been defeated.”
He linked Nigeria’s ongoing challenges in the oil sector including crude oil theft, pipeline vandalism, environmental degradation and youth restiveness to the failure of derivation funds to translate into visible development in core oil-producing areas.
According to him, Nigeria cannot sustainably boost crude oil production or secure strategic assets such as pipelines, flow stations and export terminals while host communities remain impoverished and environmentally degraded.
Mulade proposed that the Tinubu administration adopt a project-based approach by channeling derivation funds into transparent, independently monitored mega projects with regional impact.
He identified priority areas to include coastal and shoreline protection, large-scale environmental remediation, major road and bridge networks linking riverine communities, modern healthcare facilities, education infrastructure and structured youth employment programmes tied to the oil and gas value chain.
“Rather than sharing money that disappears into private pockets, derivation funds should be invested in visible, life-changing projects that will stand the test of time,” he said.
He added that a centrally coordinated framework would help align derivation spending with national development priorities, reduce duplication by states and intervention agencies, and improve accountability.
The Niger Delta leader also called for strong community participation and credible oversight in the execution of such projects, involving civil society groups, host community representatives and relevant federal institutions.
“This administration has a historic opportunity to correct decades of waste in the Niger Delta,” Mulade said, noting that proper investment of oil revenues in infrastructure and human capital would naturally reduce insecurity, oil theft and pipeline vandalism.
He further urged the National Assembly to support constitutional and policy reforms that would allow derivation funds to be used more effectively for the benefit of oil-bearing communities and the national economy.
Mulade expressed confidence that with political will and transparency, the Tinubu administration could redefine Niger Delta development, stabilise Nigeria’s oil sector and restore public trust in the management of oil revenues, amid renewed national debates on fiscal federalism and crude oil production growth.