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13% Oil Derivation Funds: Deltans Suffer Untold Hardship — Activist Mulade Sheriff

By Francis Sadhere, Delta
A prominent human and environmental rights activist, Comrade Sheriff Mulade, has lamented the persistent hardship faced by the people of Delta State despite the huge 13% oil derivation funds accruing to the oil-rich state.
Mulade, who is also the Ibe-Sorimowei of the Ancient Gbaramatu Kingdom in Warri South-West Local Government Area, said the 13% derivation fund, meant to develop oil-producing areas, has failed to translate into tangible development for the people.
Speaking with journalists on Sunday at the Africa for Peace Games Village in Ugolo/Osubi, Okpe Local Government Area, Mulade decried the poor state of infrastructure and living conditions in oil-producing communities, which he described as “deplorable despite the state’s enormous oil wealth.”
“The people of oil-producing communities are wallowing in untold hardship as the reality affects all Deltans who should ordinarily benefit massively, being part of oil-producing states such as Akwa Ibom, Rivers, Cross River, Edo, Bayelsa, Abia, Ondo, Imo, Anambra, and recently, Lagos State,” he said.
Mulade alleged that those in positions of authority have mismanaged the 13% derivation funds, using them as “budget tools” instead of deploying them for the development of host communities as originally intended.
“The sufferings of Deltans are aggravated by those who manipulated the 13% derivation to the detriment of others, especially the host communities,” he stated.
The activist particularly faulted the utilization of over ₦1.3 trillion reportedly paid to Delta State during the eight-year tenure of former Governor Ifeanyi Okowa, saying there is little to show for such massive inflows.
“Despite the bold steps taken by stakeholders, the case has suffered some setback because of political interference. But the push is not over,” Mulade assured.
According to him, Delta State remains a major beneficiary of the 13% derivation, which is a constitutional allocation of revenue derived from natural resources to oil-producing states.
He revealed that in the first five months of 2025 alone, Delta State received ₦185.16 billion — the highest among the nine oil-producing states — while between June 2023 and May 2024, the state got ₦211.69 billion.
Mulade further disclosed that between 2015 and 2023, Delta State received 29 percent of the total 13% oil derivation funds distributed nationwide, yet “oil-bearing communities continue to experience environmental degradation, poor infrastructure, and abject poverty.”
He accused the state government of withholding a substantial portion of the derivation funds from the Delta State Oil Producing Areas Development Commission (DESOPADEC), the agency established to develop oil-bearing areas.
“It is quite unfortunate that DESOPADEC currently exists only on newspapers and in paid media spaces. It has become a tool for government to compensate political foot soldiers,” he lamented.
Mulade’s comments come shortly after the Delta State Oil Producing Areas Stakeholders Forum sent an open letter to President Bola Ahmed Tinubu, raising similar concerns over the alleged mismanagement of derivation funds and neglect of host communities.
He called on the federal government, anti-corruption agencies, and civil society groups to investigate the management of the 13% derivation funds in Delta and ensure that the money serves its intended purpose — the development of oil-producing communities and the well-being of Deltans.
A prominent human and environmental rights activist, Comrade Sheriff Mulade, has lamented the persistent hardship faced by the people of Delta State despite the huge 13% oil derivation funds accruing to the oil-rich state.
Mulade, who is also the Ibe-Sorimowei of the Ancient Gbaramatu Kingdom in Warri South-West Local Government Area, said the 13% derivation fund, meant to develop oil-producing areas, has failed to translate into tangible development for the people.
Speaking with journalists on Sunday at the Africa for Peace Games Village in Ugolo/Osubi, Okpe Local Government Area, Mulade decried the poor state of infrastructure and living conditions in oil-producing communities, which he described as “deplorable despite the state’s enormous oil wealth.”
“The people of oil-producing communities are wallowing in untold hardship as the reality affects all Deltans who should ordinarily benefit massively, being part of oil-producing states such as Akwa Ibom, Rivers, Cross River, Edo, Bayelsa, Abia, Ondo, Imo, Anambra, and recently, Lagos State,” he said.
Mulade alleged that those in positions of authority have mismanaged the 13% derivation funds, using them as “budget tools” instead of deploying them for the development of host communities as originally intended.
“The sufferings of Deltans are aggravated by those who manipulated the 13% derivation to the detriment of others, especially the host communities,” he stated.
The activist particularly faulted the utilization of over ₦1.3 trillion reportedly paid to Delta State during the eight-year tenure of former Governor Ifeanyi Okowa, saying there is little to show for such massive inflows.
“Despite the bold steps taken by stakeholders, the case has suffered some setback because of political interference. But the push is not over,” Mulade assured.
According to him, Delta State remains a major beneficiary of the 13% derivation, which is a constitutional allocation of revenue derived from natural resources to oil-producing states.
He revealed that in the first five months of 2025 alone, Delta State received ₦185.16 billion — the highest among the nine oil-producing states — while between June 2023 and May 2024, the state got ₦211.69 billion.
Mulade further disclosed that between 2015 and 2023, Delta State received 29 percent of the total 13% oil derivation funds distributed nationwide, yet “oil-bearing communities continue to experience environmental degradation, poor infrastructure, and abject poverty.”
He accused the state government of withholding a substantial portion of the derivation funds from the Delta State Oil Producing Areas Development Commission (DESOPADEC), the agency established to develop oil-bearing areas.
“It is quite unfortunate that DESOPADEC currently exists only on newspapers and in paid media spaces. It has become a tool for government to compensate political foot soldiers,” he lamented.
Mulade’s comments come shortly after the Delta State Oil Producing Areas Stakeholders Forum sent an open letter to President Bola Ahmed Tinubu, raising similar concerns over the alleged mismanagement of derivation funds and neglect of host communities.
He called on the federal government, anti-corruption agencies, and civil society groups to investigate the management of the 13% derivation funds in Delta and ensure that the money serves its intended purpose — the development of oil-producing communities and the well-being of Deltans.

