Obasanjo spoke on Monday at the flag-off of the crude distillation unit of the $1bn Azikel Refinery in Obunagha, Yenagoa Local Government Area of Bayelsa State.
Addressing Governor Douye Diri at the event, the former president said oil-producing states and communities had not received a fair share of the benefits from resources extracted from their territories.
“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,” Obasanjo said.
Diri had renewed criticism of the derivation formula and the Land Use Act, arguing that Niger Delta communities remained excluded from decisions about resources found beneath their land.
The Azikel Refinery, owned by Azikel Petroleum under the Azikel Group, is designed to process 25,000 barrels of crude oil daily. Obasanjo, who laid the project’s foundation about eight years ago, commended the group’s president, Azibapu Eruani, and urged him to complete the facility within 12 months.
The remarks have renewed attention on longstanding debates over resource control, fiscal federalism and the share of oil revenue allocated to producing states.
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Former President Olusegun Obasanjo says the 13 per cent derivation allocation to oil-producing states should be a starting point for negotiations, as debate continues over resource control and benefits for Niger Delta communities. Former President Olusegun Obasanjo has backed calls for an increase in the 13 per cent derivation allocation to oil-producing states, describing the existing share as...
Key takeaways
- Former President Olusegun Obasanjo says the 13 per cent derivation allocation to oil-producing states should be a starting point for negotiations, as debate continues over resource control and benefits for Niger Delta communities.
- Former President Olusegun Obasanjo has backed calls for an increase in the 13 per cent derivation allocation to oil-producing states, describing the existing share as a starting point for further negotiations.Obasanjo spoke on Monday at the flag-off of the crude distillation unit of the $1bn Azikel Refinery in Obunagha, Yenagoa Local Government Area of Bayelsa State.Addressing Governor Douye Diri at the event, the former president said oil-producing states and communities had not received a fair share of the benefits from resources extracted from their territories.“You are right that the states and oil-producing communities have not got a fair deal so far.
- Thirteen per cent is the beginning.
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Former President Olusegun Obasanjo says the 13 per cent derivation allocation to oil-producing states should be a starting point for negotiations, as debate continues over resource control and benefits for Niger Delta communities. Former President Olusegun Obasanjo has backed calls for an increase in the 13 per cent derivation allocation to oil-producing states, describing the existing share as...
Who published this story?
Glow 99.1 FM published this story with GlowRy Atuah listed as author.
When was it published?
October 13, 2026
