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Delta State Under Scrutiny Over Alleged Misuse of Oil Derivation Funds

Governor Sheriff Oborevwori of Delta State is facing growing criticism over a lack of transparency surrounding the use of the 13% oil derivation funds allocated to oil-producing states by the federal government.

At a recent Federation Account Allocation Committee (FAAC) meeting held in June 2025, it was announced that ₦124.08 billion was shared among oil-producing states from May’s oil revenue. Delta, alongside states like Rivers, Akwa Ibom, and Bayelsa—which collectively produce the majority of Nigeria’s crude oil—was a key recipient of these funds.

Despite Delta’s significant oil output, observers argue that the funds haven’t translated into visible development for communities in the region. There are also concerns about how much of the money actually reaches the local oil-producing areas. Reports suggest that only half of the funds are earmarked for those communities, while the other half remains unaccounted for.

In an effort to obtain clarity, a formal Freedom of Information (FOI) request was submitted in April 2025 to the Delta State government, specifically through the Commissioner for Works and Information, Charles Aniagwu. However, there has been no official response after more than three months. Instead, officials have shared promotional videos and digitally-generated images as supposed evidence of how the money is being spent—raising even more doubts.

Critics believe the state’s silence may be tied to political motivations. Some allege that Governor Oborevwori may be diverting funds to support federal political alliances, especially after defecting from his former political party. The situation has sparked fears of a repeat of the 2023 incident where then-Governor Ifeanyi Okowa was accused of misusing Delta’s resources for an unsuccessful vice-presidential campaign.

Legal experts note that while a 2018 appeal court ruling had exempted states from FOI compliance, a more recent Supreme Court decision now requires all levels of government—including state authorities—to respond to such requests.

Despite this, the Delta State government has yet to offer a proper explanation. For many Deltans, especially those in oil-rich areas, the lack of transparency feels like a betrayal. They argue that the funds, meant to improve their communities, may instead be fueling political deals in Abuja.