Former Nigerian President Chief Olusegun Obasanjo on Monday advocated an increase in the 13 per cent derivation allocation to oil-producing states, emphasizing that the current framework no longer reflects the environmental burden and economic reality of the Niger Delta region.
​Obasanjo made the call while speaking as the Special Guest of Honour during the official inauguration of the Crude Distillation Unit (CDU) of the Azikel Refinery, located in Obunagha community, Yenagoa Local Government Area of Bayelsa State.
The event, which commenced at 11:00 AM on Monday, brought together key leaders from the public and private sectors, including Bayelsa State Governor Douye Diri, traditional rulers, and oil and gas industry executives.
​In his keynote address, the former president highlighted that while the 13 per cent derivation formula was a necessary constitutional benchmark introduced during his administration, it was intended to serve as a baseline for progressive growth rather than a static ceiling.
​”The 13 per cent derivation was a starting point to address the deep-seated developmental imbalances and environmental degradation in the Niger Delta,” Obasanjo stated. “Given the ongoing challenges faced by host communities and the need for deeper sub-national resource control, it is time for the Federal Government and the National Assembly to review this allocation upward to better serve the people who bear the immediate impact of oil extraction.”
​Host Governor Senator Douye Diri welcomed Obasanjo’s stance, reiterating that the Bayelsa State Government has consistently called for equity in resource distribution.
​”We appreciate President Obasanjo’s bold and objective voice on this matter,” Governor Diri remarked during his address. “An increase in the derivation funds will directly enhance our capacity to build critical infrastructure, protect our delicate marine ecosystems, and diversify our local economy.”
​The event marked a major milestone for the domestic energy sector with the commissioning of the Azikel Refinery’s Crude Distillation Unit, a 12,000-barrel-per-day (bpd) modular refinery project designed to boost local refining capacity, reduce reliance on imported petroleum products, and create direct employment opportunities for local youth.
​Speaking on behalf of the project developers, the President of Azikel Group, Dr. Eruani Azibapu Godbless, expressed appreciation to key stakeholders for their support, noting that the facility represents a practical step toward Nigerian energy independence.
​”The commissioning of this Crude Distillation Unit proves that indigenous companies possess the technical capability and vision to transform Nigeria’s oil and gas sector,” Dr. Eruani stated. “Our aim is not just to refine crude, but to build local capacity, create thousands of jobs, and add sustainable value right here in Bayelsa State.”
​The inauguration concluded with a guided facility tour led by Dr. Eruani, during which Obasanjo commended Azikel Group for its investment and called on the Federal Government to continue offering strategic incentives to modular refineries across the country.
Obasanjo Calls for Upward Revision of 13% Derivation Principle at Azikel Refinery Inauguration
Former Nigerian President Chief Olusegun Obasanjo on Monday advocated an increase in the 13 per cent derivation allocation to oil-producing states, emphasizing that the current framework no longer reflects the environmental burden and economic reality of the Niger Delta region.
​Obasanjo made the call while speaking as the Special Guest of Honour during the official inauguration of the Crude Distillation Unit (CDU) of the Azikel Refinery, located in Obunagha community, Yenagoa Local Government Area of Bayelsa State.
The event, which commenced at 11:00 AM on Monday, brought together key leaders from the public and private sectors, including Bayelsa State Governor Douye Diri, traditional rulers, and oil and gas industry executives.
​In his keynote address, the former president highlighted that while the 13 per cent derivation formula was a necessary constitutional benchmark introduced during his administration, it was intended to serve as a baseline for progressive growth rather than a static ceiling.
​”The 13 per cent derivation was a starting point to address the deep-seated developmental imbalances and environmental degradation in the Niger Delta,” Obasanjo stated. “Given the ongoing challenges faced by host communities and the need for deeper sub-national resource control, it is time for the Federal Government and the National Assembly to review this allocation upward to better serve the people who bear the immediate impact of oil extraction.”
​Host Governor Senator Douye Diri welcomed Obasanjo’s stance, reiterating that the Bayelsa State Government has consistently called for equity in resource distribution.
​”We appreciate President Obasanjo’s bold and objective voice on this matter,” Governor Diri remarked during his address. “An increase in the derivation funds will directly enhance our capacity to build critical infrastructure, protect our delicate marine ecosystems, and diversify our local economy.”
​The event marked a major milestone for the domestic energy sector with the commissioning of the Azikel Refinery’s Crude Distillation Unit, a 12,000-barrel-per-day (bpd) modular refinery project designed to boost local refining capacity, reduce reliance on imported petroleum products, and create direct employment opportunities for local youth.
​Speaking on behalf of the project developers, the President of Azikel Group, Dr. Eruani Azibapu Godbless, expressed appreciation to key stakeholders for their support, noting that the facility represents a practical step toward Nigerian energy independence.
​”The commissioning of this Crude Distillation Unit proves that indigenous companies possess the technical capability and vision to transform Nigeria’s oil and gas sector,” Dr. Eruani stated. “Our aim is not just to refine crude, but to build local capacity, create thousands of jobs, and add sustainable value right here in Bayelsa State.”
​The inauguration concluded with a guided facility tour led by Dr. Eruani, during which Obasanjo commended Azikel Group for its investment and called on the Federal Government to continue offering strategic incentives to modular refineries across the country.
