The agitation for the control of resources by the oil producing states in the Niger-Delta area is one of the major challenges confronting the nation and our nascent democracy. This controversial issue has re-surfaced during the recently concluded National Conference held between April and August 2014. The delegates from the oil producing states (south-south) demanded for between 25.5% to 50% derivation funding, which was not approve by the conference members. This paper analyses the nature and scope of this agitation and its implications for the sustenance of democratic federal system in Nigeria. The problem of mass poverty and unemployment among youths in Nigeria coupled with collapse of infrastructure, environmental degradation and pauperization of land in the Niger-Delta due to the activities of oil companies were the factors responsible for the trend. The main thrust of the recommendations hinged on ensuring a reasonable and fair sharing formula for the country's resources, and making adequate compensation to the people of the area through infrastructural development by both governments and the participating oil companies.

No abstract