IPYF/NGO/KOGI/1031/25
29th December, 2025
The Chairman
Kogi State Oil Producing Area Development Commission (KOSOPADEC),
Government House,
Lokoja, Kogi State.
COMPLAINT REGARDING THE GLARING NON-EXECUTION OF DEVELOPMENTAL PROJECTS BY KOSOPADEC IN THE OIL PRODUCING HOST COMMUNITIES OF IBAJI LOCAL GOVERNMENT AREA.
Sir,
This correspondence is formally registered following a crucial and extensively deliberated meeting of Ibaji stakeholders. These stakeholders, representing a broad spectrum of interest groups and comprising the vital constituents of Ibaji Local Government Area, convened in Onyedega, the administrative headquarters of our Local Government, on the 26th day of December, 2025. The singular, overarching agenda that dominated our discussions and necessitated this formal communication pertains to the inexplicable and deeply concerning dormancy of the Kogi State Oil Producing Area Development Commission (KOSOPADEC) in fulfilling its statutory obligations within our designated host communities. Our concerns are specifically amplified by the continued absence of any tangible developmental projects, despite the consistent and substantial flow of the 13% Derivation Funds from the Federation Allocation Account Committee (FAAC) to the Kogi State Government.
The bedrock of KOSOPADEC’s existence and operation is enshrined within its foundational legislation. Specifically, Section 14 (a) (i), (ii), and (c) of the Kogi State Oil Producing Area Development Commission (KOSOPADEC) Law of 2023, delineates the precise functions and mandate of the Commission. These provisions unequivocally state, inter alia:
“(a) Receive and administer exclusively the fifty percent (50%) of the thirteen percent (13%) Oil Derivation Fund accruing to the state;
i. The rehabilitation and development of the oil producing Communities.
ii. Other development projects as may be determined from time to time by the commission”.
Furthermore, subsection (c) of the same section imposes a critical directive: “Ensure fair and adequate distribution of developmental projects in the oil producing Communities of the state”. These clauses are not mere administrative guidelines; they represent the legal covenant between the state government, its development commission, and the communities that bear the direct environmental and social costs of oil exploration and production.
Premised firmly on these statutory mandates, it is with profound regret and mounting consternation that our meeting observed a consistent and systemic failure by the Commission to execute any discernible developmental project in any of the oil-producing areas within the host communities of Ibaji Local Government Area. This oversight persists despite the undisputed fact that the 13% oil derivation fund, a significant financial resource earmarked for the direct benefit of these production-impacted areas, has been diligently received by the Kogi State Government. This flow of funds has continued unabated, not only during the tenure of the previous administration led by Alhaji Yahaya Adoza Bello but also under the current administration of Alhaji Usman Ahmed Ododo. The absence of corresponding development projects on the ground raises grave questions about the utilization and management of these critical funds, funds that are intended to alleviate poverty, foster economic growth, and improve the quality of life in communities directly contributing to the state’s oil revenue.
The 13% Derivation Fund is a constitutional provision designed to compensate and uplift regions directly involved in the extraction of natural resources, particularly oil. For communities like those in Ibaji LGA, which are situated in oil-bearing terrains, this fund represents a lifeline, a critical mechanism to mitigate the environmental degradation, infrastructure deficits, and social disruptions often associated with the oil industry. It is intended to facilitate targeted development that addresses the unique challenges faced by these communities, fostering self-sufficiency and ensuring that the wealth generated from their land translates into tangible benefits for their people. The non-disbursement or non-application of these funds for their intended purpose constitutes not just a policy failure but a betrayal of trust and a violation of the principles of distributive justice.
Our stakeholders have documented the persistent lack of basic amenities, dilapidated infrastructure, and limited socio-economic opportunities within the oil-producing enclaves of Ibaji. Roads remain impassable, healthcare facilities are inadequate, educational institutions lack essential resources, and employment opportunities for local youth are scarce. These are precisely the areas where KOSOPADEC’s intervention, funded by the derivation proceeds, was expected to make a transformative impact. The continued neglect, in the face of available funds, breeds frustration, resentment, and a sense of abandonment among our people.
The KOSOPADEC Law of 2023, particularly Section 14, is explicit. It does not grant KOSOPADEC a discretionary mandate concerning the allocation of the 50% of the 13% derivation fund; rather, it directs that these funds be administered exclusively for the rehabilitation and development of oil-producing communities. The law also emphasizes the imperative of fair and adequate distribution of developmental projects. The current situation in Ibaji Local Government Area stands in direct contravention of these core stipulations. The absence of projects suggests either a complete dereliction of duty, a gross mismanagement of funds, or potentially, a diversion of resources away from their intended beneficiaries. This state of affairs undermines the very purpose for which KOSOPADEC was established and erodes the confidence of the populace in governance and resource management.
We, the Ibaji stakeholders, therefore, find it imperative to formally articulate our demands. These demands stem from a place of deep concern for the welfare of our communities and a commitment to upholding principles of good governance, transparency, and accountability.
OUR DEMANDS ARE AS FOLLOWS:
a. DEMAND FOR EXPLANATION ON NON-COMPLIANCE: From the foregoing analysis, it is evident that the Commission, KOSOPADEC, has failed to comply with the statutory obligations stipulated in Section 14 (a) (i), (ii), and (c) of the Kogi State Oil Producing Area Development Commission (KOSOPADEC) Principal Law of 2023. We demand a comprehensive and detailed explanation from the Commission regarding the reasons behind this persistent non-execution of projects in the oil-producing host communities of Ibaji Local Government Area. This explanation must address the systemic failures that have led to this situation and outline the steps being taken to rectify it.
b. DEMAND FOR FINANCIAL TRANSPARENCY AND DISCLOSURE: In light of the significant funds received, which have not visibly translated into development, the meeting demands that KOSOPADEC provide and publicly publish a complete and audited breakdown of all the 13% oil derivation funds received by the Kogi State Government from the Federation Allocation Account Committee (FAAC) from the inception of the fund to date. This disclosure must include the allocation, disbursement, and utilization records for each financial period, clearly indicating projects executed, their locations, costs, contractors, and completion status. Public access to this financial information is crucial for building trust and enabling community oversight.
c. LEGAL BASIS FOR DEMAND – FREEDOM OF INFORMATION ACT (FOIA) 2011: We assert that our demands for explanation and financial disclosure are fully justified and legally grounded in Section 3 of the Freedom of Information Act (FOIA) 2011. This Act unequivocally entitles citizens and stakeholders to access information held by public institutions in the interest of fairness, justice, transparency, accountability, and the promotion of a culture of good governance. The non-execution of projects and the lack of transparency regarding substantial public funds directly impact the well-being and development of our communities, making it incumbent upon KOSOPADEC to provide the requested information without delay.
We trust that you will view this complaint with the utmost seriousness it deserves, recognizing the urgent need for KOSOPADEC to live up to its mandate to develop and empower the oil-producing communities of Kogi State. The continued neglect is unsustainable and poses a significant threat to socio-economic stability and community relations.
We eagerly await your prompt and substantive response to these critical issues, demonstrating a commitment to fulfilling your commission’s obligations and restoring faith in its operations.
Yours faithfully,
Comr. Apeh Kelvin
National President.
Austine Opu Joshua
President, IUF
Linus Onate
President, NISA
Okpanachi Celestine
President IYDA
FOR: IBAJI STAKEHOLDERS
CC:
EXECUTIVE GOVERNOR KOGI STATE
KOGI STATE HOUSE OF ASSEMBLY
ECONOMIC AND FINANCIAL CRIME COMMISSION EFCC
INDEPENDENT CORRUPT PRACTICES & OTHER RELATED OFFENCES COMMISSION
CHAIRMAN IBAJI LG
CHAIRMAN IBAJI TRADITIONAL COUNCIL
IGALA CULTURAL DEVELOPMENT ASSOCIATION
UKOMU IGALA ORGANIZATION.
