Beyond the Oil Beneath Their Feet:
For generations, the people of the Niger Delta have lived with a painful contradiction: the land beneath their feet produces resources that sustain Nigeria’s economy, yet many communities continue to yearn for better roads, more jobs, improved infrastructure and a fairer share of the wealth extracted from their environment.
In Bayelsa State, where oil and gas have shaped the region’s economic and political history, the question has never been simply how much petroleum lies beneath the soil. It is whether the people who live on that land can also become meaningful beneficiaries of its wealth.
On Monday, October 12, 2026, at Obunagha in Yenagoa Local Government Area, that question found a powerful expression when former President Olusegun Obasanjo returned to the Azikel Refinery, eight years after laying its foundation stone, for the inauguration of its Crude Distillation Unit (CDU).
The occasion was a celebration of industrial ambition. But it also became a moment to revisit the Niger Delta’s long-standing demand for economic justice.
Obasanjo, speaking before government officials, traditional rulers, industry stakeholders and other guests, called for an increase in the 13 per cent derivation allocated to oil-producing states, describing the existing arrangement as a beginning rather than a final destination.
“Thirteen per cent is the beginning. You can continue to talk,” he said.
His statement echoed a grievance that has endured across oil-producing communities: that the region should not bear the burden of petroleum extraction while remaining on the margins of the prosperity the industry generates.
When the oil produces wealth, who benefits?
For many families across the Niger Delta, oil is not an abstract subject discussed only at government meetings. It is part of the environment in which they raise children, earn a living and struggle to secure a better future.
The debate over derivation therefore goes beyond percentages and government revenue. It concerns the roads connecting communities, the opportunities available to young people, the strength of public services and the ability of local businesses to grow.
For years, residents and community leaders have argued that the region deserves a greater role in decisions about its natural resources and a more visible return from the wealth extracted from their homeland.
At the Azikel Refinery ceremony, Bayelsa State Governor Douye Diri gave voice to that frustration, recalling the agitation of the Ijaw people and other oil-producing communities over what they consider an unfair arrangement.
“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,” Diri said.
He criticised the Land Use Act and the existing derivation formula, insisting that the region was not seeking to take everything for itself but wanted to participate meaningfully in the industry built around its resources.
“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.
His remarks reflected a central demand of the Niger Delta: not merely to receive allocations, but to become an active participant in the economic activities generated by oil and gas.
A billion-dollar attempt to change the story
Against this backdrop, the Azikel Refinery represents an ambitious attempt to move beyond the familiar pattern of extracting crude oil and processing petroleum elsewhere.
Owned by Azikel Petroleum under the Azikel Group, the refinery is a $1 billion project promoted by Dr. Azibapu Eruani.
For Eruani, the facility is intended to help kick-start industrialisation in Bayelsa and the wider Niger Delta by bringing more petroleum-processing activities closer to the region’s resources.
Eight years after Obasanjo laid its foundation stone, the installation of the CDU marked another significant step towards completing the project.
Eruani recalled the former president’s first visit to the site and expressed delight that he had returned to witness the refinery’s progress.
The project is expected to produce 2.5 million litres of fuel and two million litres of diesel daily, alongside other petroleum products, according to figures presented at the ceremony.
Eruani described the refinery as the second-largest full-scale refinery in Nigeria and praised President Bola Ahmed Tinubu for supporting indigenous refining. He also acknowledged the contributions of the African Finance Corporation and the African Export-Import Bank.
The vision is straightforward: rather than allowing the region to remain principally a source of raw materials, local refining could help create a stronger industrial base, stimulate businesses and expand employment opportunities.
For a young Bayelsan seeking technical work, the refinery could eventually offer a path to employment. For a local entrepreneur, it could create opportunities to supply goods and services. For the surrounding communities, it could encourage more economic activity.
But these are possibilities that must be realised through completion, commissioning and sustained commercial production.
The road to opportunity
Even as the refinery offers hope, the condition of supporting infrastructure remains part of the development conversation.
Diri called on oil companies operating around the Gbarain and Obunagha areas to complement the state government’s efforts by rehabilitating the road leading to the refinery.
His appeal highlighted an important reality: industrial investments cannot deliver their full potential in isolation. Roads, electricity, logistics, skilled labour and reliable supply chains are necessary to connect a major facility to the people and businesses around it.
If the refinery is to become a catalyst for broader development, its benefits must extend beyond the machinery and structures within its gates.
Local workers must have opportunities to acquire relevant skills. Businesses should be able to compete for legitimate supply contracts. Host communities must be meaningfully engaged, and environmental safeguards must remain central to operations.
These considerations matter because the success of an industrial project is measured not only by the money invested in it, but also by the lasting value it creates.
Obasanjo’s message: Complete the dream
Obasanjo commended Eruani for pursuing the project and challenged him to complete the refinery within the next 12 months.
The former president, who said he would turn 90 in March 2027, spoke with personal urgency as he urged the project’s promoters to bring the long-awaited ambition to fulfilment.
He also praised Diri for supporting the refinery, noting that Eruani had repeatedly acknowledged the governor’s contribution.
Obasanjo expressed appreciation to the technical and engineering teams, the African Finance Corporation and Afreximbank for supporting the project. He encouraged continued assistance to ensure its completion.
His challenge was a reminder that the installation of the CDU, though significant, is not the same as full commercial operation. The refinery must complete the remaining requirements, undergo commissioning and demonstrate that it can produce consistently and safely.
For the people whose hopes are attached to the project, the next stage will matter more than the ceremony itself.
From promises to everyday benefits
In separate remarks, Dr. Daru Owei, a board member of Azikel Petroleum, and King Bubaraye Dakolo, the Ibenanaowei of Ekpetiama Kingdom and chairman of the Bayelsa State Council of Traditional Rulers, praised Eruani for the investment and expressed optimism about its potential contribution to the economy.
Their confidence reflects the wider expectations surrounding the refinery.
Yet the questions confronting Bayelsa remain practical and deeply human. Will young people find skilled employment without having to leave the state? Will local businesses gain access to new markets? Will industrial growth help improve living conditions? Can the region secure a fairer share of petroleum wealth while protecting the environment in which its people live?
Obasanjo’s call for more than 13 per cent derivation has reopened the conversation about how the benefits of oil should be shared. Diri’s remarks have reinforced the demand for fairness and participation. Eruani’s refinery offers an opportunity to demonstrate how indigenous investment can help turn natural resources into local industrial activity.
At Obunagha, the inauguration of the CDU was more than a technical milestone. It was a meeting point between a longstanding demand for justice and a new hope for industrial development.
For the Niger Delta, however, the ultimate victory will not be measured by the size of the investment or the number of dignitaries who attended the ceremony.
It will be measured by the jobs created, the businesses strengthened, the infrastructure improved and the opportunities that reach ordinary people.
The oil has been beneath the region’s soil for generations. The question now is whether the wealth it generates can build a future in which the people of the Niger Delta are not mere
ly providers of resources, but equal participants in the prosperity those resources can create.
