Feature/OPED
13% Derivation, DESOPADEC and Oil and Gas Host Communities
By Jerome-Mario Chijioke Utomi
A cursory look at the oil and gas host communities in Delta State reveals an area tensed up with a lot of issues, intrigues and hiccups. Their anger in the present moment, going by media reports, is precipitated by the alleged opaque manner the former governor of the state, Ifeanyi Okowa, managed the 13% oil derivation fund that accrued to the state.
Correspondingly, it will not be characterized as hasty to conclude that there is presently in Delta State no agency or commission that is troubled as the Delta State Oil Producing Area Development Commission (DESOPADEC), an agency created by the enabling Act in Delta State to secure 50% of the 13% oil derivation fund accruing to the Delta State government and the received sum used for rehabilitation and development of oil-producing areas of the state as well as carry out other development projects as may be determined from time to time.
Supporting the above assertions is a recent statement by Edwin Clark, convener of the Pan-Niger Delta Forum (PANDEF), where he alleged that Ifeanyi Okowa misappropriated the state’s derivation fund amounting to N1.760 trillion.
Pa Edwin’s bombshell was followed in quick succession by a protest staged in Abuja by representatives of the Delta State oil and gas host communities, calling on the Economic and Financial Crime Commission (EFCC) to investigate the immediate past Governor for allegedly misappropriating over N1 trillion oil derivation fund belonging to the state during his tenure.
While the coastal dwellers, in their statement, insisted that the former governor unlawfully diverted the aforementioned sum, the former Governor’s men are at work, thwarting every attempt to rubbish the reputation of their former boss.
For instance, the immediate-past Commissioner for Information in Delta State, Ehiedu Charles Aniagwu, recently told the world that all the money Okowa’s administration got from Federation Account Allocation Committee, including derivation for the whole period in office amounted to N2.1 trillion and therefore described as wild goose chase HOSTCOM’s narrative on N1 trillion.
But in all this, what this piece observed could be safely categorized into three parts; first, Senator Okowa’s led government brought to the oil and gas host communities flashes of streets/internal roads.
Beyond this acknowledgement, there also exists in the state a deeply neglected coastal area which doubles as oil and gas host communities where poverty, disease and illiteracy walked their creeks, rivers and estuaries and, as a resultant effect, forced many children out of school, not because of their unwillingness to learn, but occasioned by non-availability/provision of schools in the area by the government. These are verifiable facts!
A movement by boat from Egbema Kingdom in Warri North Local Government Council to Gbaramatu Kingdom in Warri South, from Ogulaha Kingdom in Burutu Local Government to Kabowe in Patani Local Government Area, down to Bomadi Local Government Local Councils, among others, reveals a seemingly similar experience. They are all oil and gas-bearing kingdoms and communities and play host to major crude oil platforms operated by International Oil Companies (IOCs) but they have nothing to show for it.
Secondly, without going into a critical analysis of claims by Okowa that DESOPADEC got what was due to it according to the law establishing it, this piece believes that such declaration on DESOPADEC receiving a total of N208 billion in the eight years of his administration, as its rightful statutory funds appear inaccurate and, therefore, cannot hold water when faced with embarrassing arguments.
DESOPADEC, as noted in the first paragraph, is to secure 50% of the 13% oil derivation fund accruing to the Delta State government. With this in mind, is the former Governor saying that it was only N416 billion that accrued as 13% derivation to the state in the past 8 years, which summed DESOPADEC’s statutory 50% to N208 billion? Again, instead of giving a cumulative amount received from the Federation Account Allocation Committee, what stops the former Governor and his supporters from specifying the exact amount received as a 13% derivation?
While answer(s) to the above questions raised is awaited, the third and most dramatic point is DESOPADEC-specific. The non-satisfactory development of the area within this period under review, in my view, remains an emblematic sign that the affairs of the coastal areas of the state were handed over to a bunch of politicians masquerading as leaders but lacking public leadership acumen and orientation. To use the words of a public affairs commentator, they were people that ‘spend more time with wines than with books’.
Aside from turning the coastal part of the state into an endangered species via human capital neglect and infrastructural abandonment, these ‘leaders’, in turn, neglected community relations and communication. And because of this non-participatory leadership style and engagement, each time communities ask for bread, the agency makes ‘stones’ available and when the communities ask for fish, DESOPADEC provides a ‘snake’.
This piece will highlight two recent separate but related examples to support the above claims.
In October 2022, it was in the news that in the face of grave developmental challenges confronting the coastal dwellers in the state crying for attention, DESOPADEC leadership, against all known logic, opted for the donation of 50 grass-cutting machines to the people of Okerenkoko community in Gbaramatu Kingdom, Warri South-Local Government Area of Delta state. Presenting the machines, the DESOPADEC commissioner noted that the donation of grass-cutting machines to the community was statutorily captured in the commission’s 2021 budget, adding that the project was principally influenced by him”.
Those who are not conversant with the Okerenkoko community and may be tempted to believe that the donation was a right step taken in the right direction may see nothing wrong with the donation. But for someone that is familiar with the aforementioned community, the decision to donate these machines qualifies as a misguided priority.
In fact, there is everything wrong with the development. For instance, there is evidence which points to the fact that the community was neither consulted nor carried along before the decision was made. In the opinion of this piece, the grass-cutting machine donation failed the NEEDS assessment stipulations.
The words of the youth leader from the community support this assertion.
Reacting to the development, the youth leader who spoke on behalf of the community, among other things, said, “We heard about the ongoing skill acquisition. We are appealing to the Commissioner to at least create some avenue for those skill acquisitions for our ladies, for the youth in this community so that they can go out there and learn skills to back themselves, put themselves in order.”
From the above comment, one thing stands out: if given the opportunity, these knowledge-hungry youths in the community, who will provide the future leadership needs of the country, would have opted for skill acquisition. Instead of grass-cutting machines, the youths in the community would have preferred access to good schools where they would learn and compete with their peers across the globe. They were not just asking for more; rather, they asked for something new, different and more beneficial to their future.
Similarly, in November 2022, barely one month after, It was again reported that DESOPADEC leadership invited the Local Government Chairmen of Burutu, Bomadi, Patani and Warri South West Local Government Areas of the state, to a shop in Warri City, Delta State, where it handed over relief materials purchased for the victims of the flood that ravaged almost all the communities/villages in the aforementioned local government councils.
The items distributed to the affected local governments were bags of garri, bags of rice, bags of onions, bags of beans, noodles, vegetable oil, palm oil, toiletries, and foams, among others.
While the donation to flood victims is understandable, commendable and appreciated, some questions immediately come to mind as to why DESOPADEC management decided to be compassionate by proxy. What prevented DESOPADEC management from visiting the real victims of the flood to empathize with them personally? Is DESOPADEC management unaware that, in the applied sense of the word, the real empathy lies more in the visit and emotional consolation of the flood victims than the so-called relief material sent through a proxy? What will it cost DESOPADEC to pay a visit to these villages/communities in creeks?
What is the distance from Warri to Patani, Burutu and Bomadi that DESOPADEC management cannot send a delegation? How will DESPODEC management ensure/ascertain that the relief materials get to the targeted beneficiaries without getting lost in transit or misdirected? If DESOPADEC management cannot visit the creeks in this crisis period, what time will be more/most suitable to visit these people?
Even as this ugly leadership situation ‘blossoms’ in the coastal communities of Delta State, the truth remains that if we look hard enough at the moment, we shall, as a people, discover that the challenge confronting the region is not too difficult to grasp. Rather, the challenge flourishes because agencies such as DESOPADEC and their administrators have routinely become reputed for taking decisions that breed poverty.
For me, While DESOPADEC’s new leadership must commit to mind the above admonition, this piece holds the opinion that to sustainably solve the problem of the coastal dwellers in the state, a compelling point the state government must not fail to remember is the present call by stakeholders on DESOPADEC management to emulate the Chevron Nigeria Limited template in community engagement. A template that deals directly with the host community and an approach the communities claimed has worked perfectly in the area of infrastructural provision.
On his part, Governor Sheriff Oborevwori of Delta State should, within this period, execute the oil and gas host communities’ legacy projects that will stand the test of time. It will not be out of place if a bridge is constructed to link and open these oil-bearing communities.
Utomi Jerome-Mario is the Programme Coordinator (Media and Public Policy) at Social and Economic Justice Advocacy (SEJA), a Lagos-based Non-Governmental Organisation (NGO). He can be reached via *********@***oo.com/08032725374″ target=”_blank” rel=”nofollow noopener noreferrer”>Je*********@***oo.com/
By Isah Kamisu Madachi
The news that the Nigerian businessman, Aliko Dangote, plans to expand his business interest into steel production, electricity generation, and port development as part of his broader ambition to accelerate industrialisation in Africa deserves a quick reflection on the promises it carries for Nigeria. It is coming from Dangote at a time when many African countries, including Nigeria, are still struggling with below-average industrial capacity. This move speaks to something important about how prosperity is actually built.
In their Influential book ‘The Prosperity Paradox: How Innovation Can Lift Nations Out of Poverty,’ Clayton Christensen, Efosa Ojomo, and Karen Dillon argue that countries rarely overcome poverty through aid, policy declarations or resource endowments alone. According to them, the effective engine of prosperity has always been market-creating innovations by private and public enterprises that build new industries, generate jobs, and expand economic opportunities for ordinary people.
Even though their theory focuses largely on creating something new or producing it exceptionally, Dangote’s new industrial ambition seems closer to the latter. It is about producing essential things at a scale and efficiency that the existing system has failed to achieve.
Take, for example, the electricity sector in Nigeria. Since the beginning of the current Fourth Republic, billions of dollars have been allocated to power sector reforms, yet electricity supply remains unstable, and many Nigerians still depend heavily on generators to power their homes and businesses. The situation has continued to deteriorate despite the enormous resources committed to the sector by the coming of every new administration.
This is not surprising. In The Prosperity Paradox, the authors explain how nations and even international organisations sometimes keep investing huge resources in certain activities only to realise much later that they were simply hitting the wrong target. The problem is not always the lack of funding; sometimes it is the absence of a functioning market system capable of producing and distributing essential services efficiently.
Seen from this perspective, Dangote’s move into electricity generation may mean more than just an investment. It could be an attempt to tackle one of the most critically lingering bottlenecks in Nigeria’s economic development. If I were to be asked to decide which sector Dangote should begin with in this new industrial plan, I would unhesitatingly choose electricity. It is the most embattled, deeply corrupted and seemingly jeopardised beyond repair, yet the most important sector for the everyday life of citizens.
Stable electricity has the power to transform productivity across every sector. When power supply becomes reliable, small businesses are created, productivity is boosted across all sectors, and households enjoy a better quality of life. Nigeria’s long-standing energy poverty has been strangulating the productive potential of millions of people for decades. Fixing that problem alone would unlock enormous economic possibilities more than expected.
Beyond the issue of productivity, Dangote’s entry into these sectors could also stimulate competition. Healthy competition is one of the most effective drivers of efficiency in any economy. The example of the refinery project already shows how a large-scale private investment can disrupt long-standing structural weaknesses within a sector. A similar dynamic in the proposed sectors could encourage other investors to participate and expand industrial capacity.
Nigeria, by 2030, is projected to need 30 to 40 million new jobs to absorb its rapidly growing population. The scale of this challenge means that the government alone, especially in the Nigerian context, cannot create the necessary opportunities to fill this gap. Private enterprises will have to play a major role in expanding productive sectors of the economy. If supported by the right policy environment, they could contribute significantly to narrowing Nigeria’s widening job gap.
Of course, no single business initiative can solve all structural challenges in the economy. But bold investments of this nature often serve as catalysts for broader economic transformation. With the right support and healthy competition from other investors, initiatives like these could help push Nigeria closer to the kind of industrial foundation that many developed economies built decades ago.
In the end, the lesson is simple: prosperity rarely emerges from policy debates alone. It often begins with large-scale productive ventures that reshape markets, unlock productivity at both small-scale and large-scale businesses, and create direct and indirect economic opportunities for millions of common men and women.
Isah Kamisu Madachi is a policy analyst and development practitioner. He writes via is***************@***il.com
Weddings have always held a special place in African culture. They are more than ceremonies; they are declarations of love, family, identity, and tradition. From the vibrant colours of aso-ebi to the rhythmic sounds of live bands and the emotional exchange of vows, weddings represent a moment of cultural heritage.
In recent years, weddings have gone beyond physical venues. What was once an exclusive gathering for family and friends has transformed into a shared experience for wider audiences. Social media first opened the door, allowing guests and admirers to witness love stories in real time through Instagram posts, TikTok highlights, and YouTube recaps.
And now, television platforms are taking this even further, giving weddings a new kind of permanence and reach.
High-profile weddings, like the widely celebrated union of Adeyemi Idowu, popularly known as Yhemolee (Olowo Eko) and his wife Oyindamola, fondly known as ThayourB, captured massive public attention. Moments from their wedding became a live shared experience on television (GOtv & DStv).
From the high fashion statements to the emotional highlights, viewers were able to feel part of something bigger, a reminder that weddings inspire not just both families but entire communities.
This shift reflects a broader reality: weddings today are content. They inspire conversations about fashion, relationships, lifestyle, and aspiration. They preserve memories in ways previous generations could only imagine. For Gen Z couples, their wedding is no longer just a day; it becomes a story that can be revisited, celebrated, and even inspire others planning their own journey to forever.
Broadcast platforms like GOtv are playing a meaningful role in this transformation. By bringing wedding-related content directly into homes, GOtv is helping audiences experience these moments not just through social media snippets but in real time.
One of the most notable offerings is Channel 105, The Wedding Channel, Africa’s first 24-hour wedding channel, available on GOtv. The channel is fully dedicated to African weddings, lifestyle, and bridal fashion, showcasing everything from dream ceremonies to the realities of married life. Programs like Wedding Police and Wedding on a Budget, and shows like 5 Years Later, offer a deeper look into marriage itself, reminding viewers that weddings are just the beginning of a lifelong journey.
GOtv is preserving culture, celebrating love, and inspiring future couples with this channel. It allows viewers to witness traditions from different regions, discover new ideas, and feel connected to moments that might otherwise remain private.
With platforms like GOtv, stories continue to live on screens across Africa, where love, culture, and celebration can be experienced by all.
To upgrade, subscribe, or reconnect, download the MyGOtv App or dial *288#. For catch-up and on-the-go viewing, download the GOtv Stream App and enjoy your favourite shows anytime, anywhere.
Nigeria is entering a timing-sensitive macro set-up as the oil complex reprices disruption risk and the US dollar firms. Brent moved violently this week, settling at $77.74 on 02 March, up 6.68% on the day, after trading as high as $82.37 before settling around $78.07 on 3 March. For Nigeria, the immediate hook is the overlap with domestic policy: the Central Bank of Nigeria (CBN) has just cut its Monetary Policy Rate (MPR) by 50 basis points to 26.50%, whilst headline inflation is still 15.10% year on year in January.
“Investors often talk about Nigeria as an oil story, but the market response is frequently a timing story,” said David Barrett, Chief Executive Officer, EBC Financial Group (UK) Ltd. “When the pass-through clock runs ahead of the policy clock, inflation risk, and United States Dollar (USD) demand can show up before any oil benefit is felt in day-to-day liquidity.”
Policy and Pricing Regime Shift: One Shock, Different Clocks
EBC Financial Group (“EBC”) frames Nigeria’s current set-up as “policy-lag arbitrage”: the same external energy shock can hit domestic costs, FX liquidity, and monetary transmission on different timelines. A risk premium that begins in crude can quickly show up in delivered costs through freight and insurance, and EBC notes that downstream pressure has been visible in refined markets, with jet fuel and diesel cash premiums hitting multi-year highs.
Market Impact: Oil Support is Conditional, Pass-through is Not
EBC points out that higher crude is not automatically supportive of the naira in the short run because “oil buffer” depends on how quickly external receipts translate into market-clearing USD liquidity. Recent price action illustrates the sensitivity: the naira was quoted at 1,344 per dollar on the official market on 19 February, compared with 1,357 a week earlier, whilst street trading was cited around 1,385.
At the same time, Nigeria’s inflation channel can move quickly even during disinflation: headline inflation eased to 15.10% in January from 15.15% in December, and food inflation slowed to 8.89% from 10.84%, but energy-led transport and logistics costs can reintroduce pressure if the risk premium persists. EBC also points to a broader Nigeria-specific reality: the economy grew 4.07% year on year in 4Q25, with the oil sector expanding 6.79% and non-oil 3.99%, whilst average daily oil production slipped to 1.58 million bpd from 1.64 million bpd in 3Q25. That mix supports external-balance potential, but it also underscores why the domestic liquidity benefit can arrive with a lag.
Nigeria’s Buffer Looks Stronger, but It Does Not Eliminate Sequencing Risk
EBC sees that near-term external resilience is improving. The CBN Governor said gross external reserves rose to USD 50.45 billion as of 16 February 2026, equivalent to 9.68 months of import cover for goods and services. Even so, EBC views the market’s focus as pragmatic: in a risk-off tape, investors tend to price the order of transmission, not the eventual balance-of-payments benefit.
In the near term, EBC expects attention to rotate to scheduled energy and policy signposts that can confirm whether the current repricing is a short, violent adjustment or a more durable regime shift, including the U.S. Energy Information Administration (EIA) Short-Term Energy Outlook (10 March 2026), OPEC’s Monthly Oil Market Report (11 March 2026), and the U.S. Federal Reserve meeting (17 to 18 March 2026). On the domestic calendar, the CBN’s published schedule points to the next Monetary Policy Committee meeting on 19 to 20 May 2026.
Risk Frame: The Market Prices the Lag, Not the Headline
EBC cautions that outcomes are asymmetric. A rapid de-escalation could compress the crude risk premium quickly, but once freight, insurance, and hedging behaviour adjust, second-round effects can linger through inflation uncertainty and a more persistent USD bid.
“Oil can act as a shock absorber for Nigeria, but only when the liquidity channel is working,” Barrett added. “If USD conditions tighten first and domestic pass-through accelerates, the market prices the lag, not the headline oil price.”
Brent remains an anchor instrument for tracking this timing risk because it links energy-led inflation expectations, USD liquidity, and emerging-market risk appetite in one market. EBC Commodities offering provides access to Brent Crude Spot (XBRUSD) via its trading platform for following energy-driven macro volatility through a single instrument.
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