CSO seeks Tinubu’s Executive Order over governors' control of 13% fund
President Bola Tinubu has been urged to issue an Executive Order to restore the lawful and constitutional administration of the 13 per cent derivation fund, warning that the continued control
President Bola Tinubu has been urged to issue an Executive Order to restore the lawful and constitutional administration of the 13 per cent derivation fund, warning that the continued control of the fund by state governors undermines transparency, accountability and the 1999 Constitution (as amended).
Making the call in an open letter, Coordinator of the Niger Delta Civil Society Forum (NDCSF), Comrade Ezekiel Kagbala, said it was compelled to act “in the spirit of patriotism, constitutionalism, and justice,” arguing that oil and gas revenues fall strictly within the Exclusive Legislative List and therefore under federal jurisdiction.
Citing Item 39 of Part I of the Second Schedule to the Constitution, which covers mines and minerals, including oilfields, oil mining, geological surveys and natural gas, the group maintained that only the Federal Government, acting through the President, has constitutional authority over oil and gas matters.
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“Yet, for over thirty years, governors of oil- and gas-producing states and their state assemblies have exercised control over derivation funds,” the Forum stated, describing the practice as persistent constitutional overreach and illegality.
The NDCSF referenced Section 162(2) of the Constitution, which provides that the principle of derivation shall be “not less than thirteen per cent of the revenue accruing to the Federation Account from any natural resources.”
According to the Forum, the 13 per cent derivation fund is a first-line charge on the federation account and must be set aside before the remaining 87 per cent is distributed among the Federal, State and Local Governments.
“In law and practice, first-line charges are paid directly to beneficiaries. The Federal Government is a second-line charge, states third-line, and local government’s fourth-line.
“However, the current practice of handing the 13 per cent derivation fund to state governors to administer has no constitutional foundation and undermines transparency, accountability, and the intent of the Constitution,” it stated.
The group argued that vesting the funds in governors has weakened oversight and diverted the derivation principle from its core objective of directly benefiting oil-producing and host communities.
