- A program is providing a $600M loan to increase fertilizer production capacity in Africa, supporting a new 3 MTPA urea plant development.
- AFC has launched a fund to mobilize capital specifically for infrastructure development across the African continent, with a focus on Nigeria.
- AFC provided support to the Azikel Refinery project in Nigeria and advocated for increased derivation to oil states.
Niger Delta Forum Demands Massive Increase in Oil Derivation Allocation
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
New informationRepeats or wire copies
What happened
The Pan Niger Delta Forum (PANDEF) demanded that the minimum derivation allocation for oil-producing states be raised from 13 per cent to 50 per cent, according to a communiqué read by Godknows Igali. PANDEF also called on the federal government, the Revenue Mobilisation, Allocation and Fiscal Commission, and the National Assembly to abolish the onshore/offshore dichotomy in revenue allocation.
From allafrica.com
Why it matters
The demands challenge the existing revenue allocation structure in Nigeria, which has remained unchanged for over two decades despite environmental and developmental concerns in the Niger Delta. A shift in derivation policy would require a massive change in national revenue distribution.
The African Finance Corporation has previously advocated for increased derivation to oil states and launched a fund to mobilize capital for infrastructure development across Africa, with a focus on Nigeria.
From allafrica.com
Who's involved
- Godknows IgaliNational Chairman of PANDEF, who read the communiqué detailing the demands
- Niger DeltaThe region whose communities are cited as suffering consequences from offshore petroleum operations
- federal governmentThe central government entity being called upon to change revenue allocation policy
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Akwa Ibom StateSpeculative
Akwa Ibom State might see increased state revenue if the derivation policy changes
- Rivers StateSpeculative
Rivers State might see increased state revenue if the derivation policy changes
- Bayelsa StateSpeculative
Bayelsa State might see increased state revenue if the derivation policy changes
- ShellSpeculative
Shell might face regulatory shifts leading to increased state revenue or royalties in operating states
- NigeriaSpeculative
Nigeria might experience fiscal pressure due to the demands for a massive change in revenue allocation policy
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- How could PANDEF's demands for increased derivation affect the Federal Ministry of Works?PANDEF demands could accelerate Lagos-Calabar Coastal Highway workLikely
- Rivers State may benefit from higher oil derivation allocationRivers State could see a strong increase in revenue if derivation allocation changesPossible
- Increased derivation demands could force federal government revenue reviewIncreased derivation demands could force federal government revenue reviewPossible
- PANDEF demands major fiscal overhaul from Tinubu's governmentTinubu's administration faces political pressure over Niger Delta fiscal demandsPossible
Keep exploring
The entities involved
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Niger Delta
delta of the Niger River in Nigeria and the surrounding region
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Godknows Igali
Nigerian public servant, diplomat, author and scholar
Nothing else this week.