Former President Olusegun Obasanjo and Bayelsa State Governor Douye Diri have called for a higher oil revenue share for Niger Delta states.
Both leaders said the current 13 per cent derivation allocation does not give oil-producing communities a fair deal. They made the call during the inauguration of the Crude Distillation Unit at the $1bn Azikel Refinery in Yenagoa, Bayelsa State.
Diri: 13% Oil Derivation Is Not Enough
Governor Diri said oil-producing communities suffer environmental damage from oil exploration without receiving enough benefits. He urged the Federal Government to review the existing resource-sharing arrangement.
“As people of the Ijaw ethnic nationality, we have protested and fought because we feel that God gave us something in our land, but we are not benefiting from it,” Diri said.
He also criticised the Land Use Act, which gives the Federal Government control over resources beneath the ground. According to him, oil-producing states deserve a stronger voice in managing their natural resources.
“We do not want to take all to ourselves. We just want to be co-players in determining how it is done. Thirteen per cent is not enough for the states,” he added.
Diri described the refinery as a major step towards industrial growth in the Niger Delta. He also urged young people to acquire technical skills for future job opportunities. Additionally, he called on oil companies operating in Gbarain-Obunagha to repair the road leading to the facility.
Obasanjo Gives Azikel Refinery 12-Month Deadline
Obasanjo praised the refinery’s promoter, Dr Azibapu Eruani, for investing in Nigeria’s refining industry. However, he challenged him to complete the facility within the next 12 months.
“My challenge to you, Dr Eruani, is to ensure that the refinery is completed within the next 12 months,” Obasanjo said.
The former president also supported calls for a higher derivation allocation. He described the current 13 per cent share as a starting point for further discussions.
“You are right that the states and oil-producing communities have not got a fair deal so far. Thirteen per cent is the beginning. You can continue to talk,” he said.
Obasanjo also praised Diri, the African Finance Corporation and the African Export-Import Bank for supporting the project.
Azikel Refinery Targets Millions of Litres Daily
Azikel Petroleum, a subsidiary of Azikel Group, owns the refinery. The facility aims to produce 2.5 million litres of petrol and two million litres of diesel daily. It will also produce other refined petroleum products.
The Crude Distillation Unit separates crude oil into different fractions for further processing. Once fully operational, the refinery could boost local refining, create jobs and support businesses across Bayelsa State.
Speaking at the event, Eruani said the project aims to transform the Niger Delta into a refining and industrial hub. He thanked President Bola Tinubu, Diri, financial institutions and technical partners for their support.
Traditional rulers and other project stakeholders also praised the investment. They expressed hope that the refinery would drive economic growth and create more opportunities for people in the region.
