1.3 Trillion Oil Derivation Windfall, Yet Deltans Groan In Poverty — Mulade Explodes

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Renowned human and environmental rights advocate, Comrade Sheriff Mulade, has decried the worsening economic and social conditions in Delta State despite the state’s status as a major beneficiary of the 13% oil derivation fund.

Speaking with journalists on Sunday at the Africa for Peace Games Village, Ugolo/Osubi, in Okpe Local Government Area, Comrade Mulade, who is also the Ibe-Sorimowei of the Ancient Gbaramatu Kingdom in Warri South-West Local Government Area, lamented that the huge derivation allocations have failed to translate into meaningful development for the people, particularly those in oil-producing communities.

“Despite the billions received by Delta State, there is little or no evidence of development in the oil-bearing communities where residents continue to face environmental degradation, poor infrastructure, and neglect from all tiers of government,” Mulade said.

He alleged that the hardship being experienced by Deltans has been worsened by “the manipulation of the 13% derivation funds by a few individuals to the detriment of the people, especially the host communities.”

Mulade expressed dismay that, despite the payment of about ₦1.3 trillion to Delta State during the eight-year tenure of former Governor Dr. Ifeanyi Okowa, the funds have not brought the desired improvement in living standards.

“The Niger Delta region is still suffering from massive infrastructural decay, widespread poverty, and environmental degradation.

“The 13% derivation funds have become budgetary tools used by state governments rather than for the development of oil-producing and oil-bearing communities as intended,” he added.

The activist further highlighted that Delta State remains one of the largest beneficiaries of the constitutional provision, which mandates that 13% of revenue generated from natural resources be allocated to oil-producing states.

According to him, between June 2023 and May 2024, Delta State received ₦211.69 billion from the 13% derivation fund, and in the first five months of 2025 alone, the state got ₦185.16 billion, the highest among the nine oil-producing states.

He also noted that between 2015 and 2023, Delta received about 29% of the total national allocation from the derivation fund.

“Unfortunately, these figures have not translated into meaningful development in the communities that produce the oil. Instead, we still see poverty, underdevelopment, and neglect everywhere,” Mulade lamented.

He further accused the state government of withholding a significant portion of the derivation funds from the Delta State Oil Producing Areas Development Commission (DESOPADEC)—the statutory agency established to develop oil-producing areas.

Mulade recalled that the Delta State Oil Producing Areas Stakeholders Forum recently sent an open letter to President Bola Ahmed Tinubu, echoing similar concerns over the alleged misuse of the 13% derivation funds.

“It is quite unfortunate that DESOPADEC now exists only on the pages of newspapers and in paid media campaigns. It has become a tool for political patronage rather than a vehicle for genuine development,” he lamented.

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