Former federal lawmaker Farah Dagogo has raised concerns over the misuse of the 13 percent derivation funds allocated to oil-producing states in the Niger Delta. Despite receiving substantial amounts from the Federal Government, Dagogo claims that the region’s governors have failed to use these funds effectively to improve the living conditions in their communities.
Dagogo, in a statement issued on Monday from Port Harcourt, pointed out that the Niger Delta has received trillions of naira in 13 percent derivation funds over the past 23 years. In the first half of 2024 alone, over ₦600 billion was allocated, yet the region continues to grapple with severe poverty, inadequate infrastructure, and poor living conditions.
The former lawmaker highlighted the increasing amounts released each month:
- January: ₦57.92 billion
- February: ₦85.10 billion
- March: ₦166.24 billion
- April: ₦90.12 billion
- May: ₦120.45 billion
- June: ₦106.50 billion
Dagogo acknowledged that while the Federal Government has shown commitment by steadily increasing the 13 percent derivation allocations, the governors have not matched this effort with effective utilization. He criticized the governors for their perceived indifference and mismanagement of the funds, which are intended to address infrastructural decay and development needs in the oil-producing communities.
“The 13 percent derivation is constitutionally mandated to assist oil-producing communities with their development needs. Despite the massive sums allocated over two decades, the situation on the ground remains dire. Governors seem to view these funds as free money rather than a critical resource for community development,” Dagogo said.
He lamented that the oil-producing communities still lack basic amenities such as electricity, clean drinking water, and roads. Dagogo attributed this failure to a systemic issue where governors, rather than serving as custodians of the funds, are perceived to use them for personal gain and to maintain control over their political fiefdoms.
“The governors, who should be the stewards of these funds, are instead allowing the funds to be misused or siphoned. This negligence leads to the continued suffering of the people in these communities,” Dagogo added.
He called for an investigation into the management of the derivation funds, urging that the stark contrast between the allocated amounts and the poor living conditions in the Niger Delta be thoroughly examined.