Federalism and Resource Control in the Niger Delta: A Review of Policy Frameworks

This study critically reviews the policy frameworks governing resource control in the Niger Delta under Nigeria's federal system, assessing the extent to which current arrangements address the region's development aspirations and historical grievances. Resource control has been a central issue in Nigeria's federal politics, particularly for oil-producing communities in the South South geopolitical zone that bear the environmental costs of extraction while receiving a disproportionately small share of the resulting revenues. The study uses a documentary analysis research design, relying on primary sources such as the Nigerian Constitution, the Niger Delta Development Commission Act, the Petroleum Industry Act 2021, and relevant judicial decisions, supplemented by secondary literature from political economy and constitutional law scholars. The resource dependency theory and fiscal federalism framework are applied to evaluate the adequacy of current revenue allocation formulas and derivation principles. Findings indicate that despite incremental adjustments to the derivation formula, Niger Delta communities continue to experience significant fiscal inequity relative to the environmental degradation they endure. The Petroleum Industry Act, while introducing limited community development provisions, falls short of the comprehensive resource control demands articulated by community advocates and state governments in the region. The study recommends a constitutional review that increases the derivation percentage, strengthens environmental liability provisions, and devolves greater regulatory authority to oil-producing states. These reforms, the study argues, are essential for achieving equitable federalism and sustainable peace in the Niger Delta. Keywords: federalism, resource control, Niger Delta, fiscal federalism, Petroleum Industry Act