“13% Is Just The Beginning!” Obasanjo Tells Niger Delta To Keep Fighting As Diri Says Ijaws Must Not Be Treated As Second-Class Citizens In Their Own Land

By Passman Akpos

YENAGOA, Bayelsa State — Former President Olusegun Obasanjo has called for an increase in the 13 per cent derivation fund allocated to oil-producing states, declaring that the current arrangement should be regarded as a starting point for further negotiations.

Obasanjo made the call on Monday, October 12, 2026, during the flag-off ceremony for the installation of the Crude Distillation Unit (CDU) at the $1 billion Azikel Refinery in Obunagha, Yenagoa Local Government Area of Bayelsa State.

The former president’s remarks have renewed attention on the longstanding demand by Niger Delta communities for a greater share of the wealth generated from their oil and gas resources.

The refinery, owned by Azikel Petroleum under the Azikel Group, is expected to produce 2.5 million litres of fuel and two million litres of diesel daily, alongside other petroleum products, when fully operational.

Obasanjo commended the President of Azikel Group, Dr. Azibapu Eruani, for pursuing the project and challenged him to ensure its completion within the next 12 months.

According to the former president, the refinery represents a significant development compared with the situation when he visited the site eight years ago.

He also acknowledged the contributions of the Bayelsa State Governor, Senator Douye Diri, and the project’s technical and engineering team, as well as the African Finance Corporation (AFC) and Afreximbank, for their support.

Obasanjo urged the financial institutions and other stakeholders to sustain their assistance to ensure the refinery is completed within the proposed timeframe.

“I have told Dr. Eruani that I will be officially 90 years by next year March. It means I will take the boarding pass soon. So, he has to make sure the project is completed before I exit,” he said.

Addressing Governor Diri, the former president praised his administration for supporting the refinery and said the state government had made effective use of the funds available to it.

On the contentious issue of derivation, Obasanjo acknowledged the grievances of oil-producing states and communities, maintaining that the current 13 per cent allocation should not be considered the final arrangement.

“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.

His comments are likely to attract renewed debate over resource control, fiscal federalism and the distribution of petroleum revenues in Nigeria, particularly as communities in the Niger Delta continue to demand greater participation in decisions affecting their natural resources.

AZIKEL REFINERY TO DRIVE NIGER DELTA INDUSTRIALISATION — ERUANI

Speaking at the ceremony, Azikel Group President, Dr. Azibapu Eruani, said the refinery would serve as a catalyst for the industrialisation of Bayelsa State and the wider Niger Delta region.

Eruani recalled that Obasanjo laid the foundation for the refinery eight years ago, describing the former president’s return for the installation of the CDU as a significant milestone in the project’s development.

He said the refinery was conceived to ensure that the Niger Delta became an active participant in the petroleum industry rather than remaining predominantly a source of crude oil for processing elsewhere.

According to him, the project is the second-largest full-scale refinery in Nigeria and is intended to strengthen domestic refining capacity while creating opportunities for economic growth.

Eruani also praised President Bola Tinubu for supporting indigenous refineries, saying such investments align with the Federal Government’s stated objective of improving the availability and affordability of petroleum products.

He expressed appreciation to Governor Diri, the African Finance Corporation and Afreximbank for their contributions to the project.

The refinery is expected to create opportunities across the petroleum value chain, with potential benefits for employment, local businesses, technical skills development and industrial investment.

However, the extent of these benefits will depend on the project’s timely completion, operational performance and the participation of people and businesses from Bayelsa and the wider Niger Delta.

’13 PER CENT IS NOT ENOUGH’ — DIRI REVISITS RESOURCE CONTROL DEBATE

Bayelsa State Governor, Senator Douye Diri, described the refinery as a justification for decades of agitation by the Niger Delta over what he characterised as injustice in the oil industry.

Diri argued that communities producing crude oil should have a more meaningful role in the industry and benefit more directly from the resources extracted from their land.

He criticised the Land Use Act and the existing 13 per cent derivation arrangement, insisting that oil-producing states deserved a greater share of the benefits from their natural resources.

The governor maintained that the region was not demanding exclusive control over petroleum resources but wanted to become an active partner in decisions concerning their exploration, production and utilisation.

“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. Others are benefiting and saw us as second-class citizens,” Diri said.

He added that the region had endured a long struggle to secure a meaningful place in an industry built around resources extracted from its communities.

“The Land Use Act is unfair. Surface resources belong to states but what lies underneath belongs to the Federal Government. That law is obnoxious and not good for any just society,” the governor stated.

Diri further declared that the 13 per cent derivation allocation was insufficient to address the expectations of oil-producing states.

“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 said.

The governor’s remarks reflect a longstanding debate over Nigeria’s federal structure, the ownership and management of natural resources, environmental degradation and the distribution of revenues generated from the Niger Delta.

DIRI CHARGES BAYELSANS TO PREPARE FOR OPPORTUNITIES

While celebrating the refinery project, Diri urged residents of Bayelsa State to equip themselves with the necessary skills and knowledge to benefit from the opportunities the facility could generate.

He stressed that processing natural resources within Africa was essential to ensuring that the continent captured more value from its mineral and petroleum wealth.

The governor said the establishment of the refinery would give Bayelsans a greater opportunity to participate in the petroleum industry and its associated businesses.

He also appealed to oil companies operating within the Gbarain/Obunagha area to complement the state government’s efforts by rehabilitating the road leading to the refinery.

The appeal highlights the importance of supporting infrastructure, including roads and other essential facilities, in ensuring that major industrial investments deliver their expected economic benefits to host communities.

TRADITIONAL LEADERS, STAKEHOLDERS WELCOME PROJECT

In separate remarks, a board member of Azikel Petroleum, Dr. Daru Owei, and the Ibenanaowei of Ekpetiama Kingdom and Chairman of the Bayelsa State Council of Traditional Rulers, King Bubaraye Dakolo, commended Eruani for undertaking the refinery project.

Both speakers expressed optimism that the investment would improve the economic prospects of Bayelsa State, the Niger Delta and Nigeria as a whole.

The ceremony brought together political leaders, traditional rulers, project stakeholders and other participants to witness a key stage in the refinery’s development.

THE BIGGER QUESTION: WILL THE NIGER DELTA BENEFIT?

Beyond the installation of the CDU, the refinery project has reopened a fundamental question about the future of the Niger Delta: Can the region that supplies much of Nigeria’s crude oil finally secure a stronger position in the industries built around its natural resources?

For decades, communities across the oil-producing states have raised concerns about environmental damage, inadequate infrastructure, limited employment opportunities and the distribution of petroleum revenues.

The call by Obasanjo for an increase in the 13 per cent derivation allocation, alongside Diri’s renewed criticism of the existing arrangement, underscores the continuing demand for a review of how oil wealth is distributed.

Meanwhile, the Azikel Refinery represents an effort to expand domestic processing capacity and create an industrial asset within an oil-producing state.

If completed and operated successfully, the project could provide opportunities for employment, local enterprise development and participation in the petroleum value chain.

However, the ultimate test will be whether the investment translates into tangible benefits for ordinary residents, host communities and businesses across Bayelsa State.

For now, Obasanjo’s 12-month completion challenge has placed renewed attention on the project’s timeline, while the debate over derivation and resource control remains firmly on the Niger Delta’s political and economic agenda.

Source: Daniel Alabrah, Chief Press Secretary to the Governor of Bayelsa State. October 12, 2026.