Opinion
Of Royalties And Oil Bearing Communities
The demands and grievances of Nigeria’s oil-bear
ing areas can be identified under five broad themes. These are related to the disposition of mineral land rents, the application of the derivation principle, the allocation of federally collected mineral revenues, the appropriate institutional and fiscal responses to the ecological problems of the oil-producing areas and the responsibility of the oil-producing companies to the oil producing/bearing communities with the present federal structure.
Perhaps the most logically and legally compelling of the demands of the oil-bearing communities and states are their claims to mineral land rents. For instance, land right in Nigeria were vested in the respective local communities. But under the Land Use Decree of 1978, however, ownership of land is vested in the state. Thus both traditionally and legally, the federal government has no direct claims to land in the states.
The Federal Government has continued not only to prescribe how much rent is paid by the oil-prospecting companies for land used, but also to collect these rents. The justification for the Federal Government’s action is the defunct Petroleum Decree of 1969 and relevant provisions of the 1999 constitution which vest in the federation control of all minerals and gas in, under or upon the land and territorial waters of Nigeria. However, these provisions clearly refer to ownership of mineral wealth and not ownership of land which, under the practice of the constitution, remains vested in the states.
In essence, therefore, the federal government’s retention of mineral land rents would appear to be unconstitutional since the states are clearly entitled to such rents as a matter of right. Two unresolved problems, however, beset the position that mining rents are legally not the property of the Federal Government. The first is whether these rents should belong to the state government or to the specific oil-bearing communities involved. Although the Land Use Degree would appear to give the states the right to these rents, the oil producing communities have also asserted an exclusive and intrinsic right to what they regard as rents on communal lands.
A far more complicated issue relates to the attempt by elements from the oil-bearing communities to juxtapose mineral rents and royalties as resources legitimately belonging exclusively to the oil-producing communities. Consider, for example, the following statement by the Movement For The Survival of the Ogoni People (MOSOP): “MOSOP insists that oil royalties and rents are the property of landlords and that the Federal Government must return to the oil-bearing communities all royalties and rents paid to it by the oil-producing companies since 1958.
The constitutional position on the matter is, however, unambiguous while rents are a tribute to the owners of land. The state governments, royalties are levies on minerals, whose ownership remain vested in the Federal Government.
The demand of the oil-producing states and communities is that a significant proportion (usually put at not less than 10 percent) of the mineral revenues should be returned to the producing areas on the basis of the derivation principle. Derivation is, of course, a long-standing principle of distribution which stipulates that a significant proportion of the revenues collected in a locality should be returned to that locality or segment.
Derivation was, however, introduced as mineral exploitation replaced agricultural exports as the principle source of government revenues and foreign exchange earnings in Nigeria. This change in the rules for allocating revenues was denounced by the majority ethnic nationalities who were bent on ensuring that the minority groups that produce the oil were denied their economic rights.
Very sadly, the derivation, which is meant to benefit the host communities by way of building development projects there, never gets to them. Governors of oil producing states have decided to utilise the funds in other areas of the state.
These oil producing communities have been loud about the exploitation they have suffered from the Federal Government. They are denied access to the natural resources situated in their lands. They, therefore, ask the Federal Government to give them access to their God-given resources.
In line with the demands of the oil bearing communities, I urge the Federal Governmen to pay royalties directly to the communities or prevail on state governors to pay the 13 percent deviation to oil bearing communities.
Agbadam is a student of Eastern Polytechnic, Port Harcourt
Opinion
Why Reduce Cut-Off Mark for C.O.E ?
Opinion
Welcome! Worthy Future For R/S
Opinion
Restoring Order, Delivering Good Governance
The political atmosphere in Rivers State has been anything but calm in 2025. Yet, a rare moment of unity was witnessed on Saturday, June 28, when Governor Siminalayi Fubara and Minister of the Federal Capital Territory, Chief Nyesom Wike, appeared side by side at the funeral of Elder Temple Omezurike Onuoha, Wike’s late uncle. What could have passed for a routine condolence visit evolved into a significant political statement—a symbolic show of reconciliation in a state bruised by deep political strife.
The funeral, attended by dignitaries from across the nation, was more than a moment of shared grief. It became the public reflection of a private peace accord reached earlier at the Presidential Villa in Abuja. There, President Bola Ahmed Tinubu brought together Governor Fubara, Minister Wike, the suspended Speaker of the Rivers State House of Assembly, Martin Amaewhule, and other lawmakers to chart a new path forward.
For Rivers people, that truce is a beacon of hope. But they are not content with photo opportunities and promises. What they demand now is the immediate lifting of the state of emergency declared in March 2025, and the unconditional reinstatement of Governor Fubara, Deputy Governor Dr. Ngozi Odu, and all suspended lawmakers. They insist on the restoration of their democratic mandate.
President Tinubu’s decision to suspend the entire structure of Rivers State’s elected leadership and appoint a sole administrator was a drastic response to a deepening political crisis. While it may have prevented a complete breakdown in governance, it also robbed the people of their voice. That silence must now end.
The administrator, retired naval chief Ibok-Ette Ibas, has managed a caretaker role. But Rivers State cannot thrive under unelected stewardship. Democracy must return—not partially, not symbolically, but fully. President Tinubu has to ensure that the people’s will, expressed through the ballot, is restored in word and deed.
Governor Fubara, who will complete his six-month suspension by September, was elected to serve the people of Rivers, not to be sidelined by political intrigues. His return should not be ceremonial. It should come with the full powers and authority vested in him by the constitution and the mandate of Rivers citizens.
The people’s frustration is understandable. At the heart of the political crisis was a power tussle between loyalists of Fubara and those of Wike. Institutions, particularly the State House of Assembly, became battlegrounds. Attempts were made to impeach Fubara. The situation deteriorated into a full-blown crisis, and governance was nearly brought to its knees.
But the tide must now turn. With the Senate’s approval of a record ?1.485 trillion budget for Rivers State for 2025, a new opportunity has emerged. This budget is not just a fiscal document—it is a blueprint for transformation, allocating ?1.077 trillion for capital projects alone. Yet, without the governor’s reinstatement, its execution remains in doubt.
It is Governor Fubara, and only him, who possesses the people’s mandate to execute this ambitious budget. It is time for him to return to duty with vigor, responsibility, and a renewed sense of urgency. The people expect delivery—on roads, hospitals, schools, and job creation.
Rivers civil servants, recovering from neglect and under appreciation, should also continue to be a top priority. Fubara should continue to ensure timely payment of salaries, address pension issues, and create a more effective, motivated public workforce. This is how governance becomes real in people’s lives.
The “Rivers First” mantra with which Fubara campaigned is now being tested. That slogan should become policy. It must inform every appointment, every contract, every budget decision, and every reform. It must reflect the needs and aspirations of the ordinary Rivers person—not political patrons or vested interests.
Beyond infrastructure and administration, political healing is essential. Governor Fubara and Minister Wike must go beyond temporary peace. They should actively unite their camps and followers to form one strong political family. The future of Rivers cannot be built on division.
Political appointments, both at the Federal and State levels, must reflect a spirit of fairness, tolerance, and inclusivity. The days of political vendettas and exclusive lists must end. Every ethnic group, every gender, and every generation must feel included in the new Rivers project.
Rivers is too diverse to be governed by one faction. Lasting peace can only be built on concessions, maturity, and equity. The people are watching to see if the peace deal will lead to deeper understanding or simply paper over cracks in an already fragile political arrangement.
Wike, now a national figure as Minister of the FCT, has a responsibility to rise above the local fray and support the development of Rivers State. His influence should bring federal attention and investment to the state, not political interference or division.
Likewise, Fubara should lead with restraint, humility, and a focus on service delivery. His return should not be marked by revenge or political purges but by inclusive leadership that welcomes even former adversaries into the process of rebuilding the state.
“The people are no longer interested in power struggles. They want light in their streets, drugs in their hospitals, teachers in their classrooms, and jobs for their children. The politics of ego and entitlement have to give way to governance with purpose.
The appearance of both leaders at the funeral was a glimpse of what unity could look like. That moment should now evolve into a movement-one that prioritizes Rivers State over every personal ambition. Let it be the beginning of true reconciliation and progress.
As September draws near, the Federal government should act decisively to end the state of emergency and reinstate all suspended officials. Rivers State must return to constitutional order and normal democratic processes. This is the minimum requirement of good governance.
The crisis in Rivers has dragged on for too long. The truce is a step forward, but much more is needed. Reinstating Governor Fubara, implementing the ?1.485 trillion budget, and uniting political factions are now the urgent tasks ahead. Rivers people have suffered enough. It is time to restore leadership, rebuild trust, and finally put Rivers first.
By: Amieyeofori Ibim
Amieyeofori Ibim is former Editor of The Tide Newspapers, political analyst and public affairs commentator
-
Politics1 day ago
Alleged Money Laundering: Fayose Has No Case To Answer, Court Tells EFCC
-
Politics1 day ago
Atiku Quits PDP, Says Decision Heartbreaking
-
Rivers1 day ago
CDS Urges Communities To Protect Pipelines
-
Politics1 day ago
Atiku’s Exit No Problem To PDP – Makinde
-
News1 day ago
Shettima, Atiku, Obi Attend Buhari’s Fidau Prayer In Daura
-
News1 day ago
JAMB Uncovers 9,469 Fake Admissions In 20 Tertiary Institutions
-
News1 day ago
NAF Disowns Recruitment Adverts, Says It’s Fake
-
Rivers1 day ago
Okrika Administrator Seeks To Connect Okujagu Ama To National Grid … Donates 30 Life Jackets To Okujagu Ama Boat Drivers