Abstract
There is growing agitation in Nigeria's oil producing areas for more equitable compensation from the Nigerian state for the upstream activities that take place in these areas. The various formulas employed over the years to distribute the country's revenues between its federal, state and local governments have been skewed against the oil producing areas. The Nigerian government in 1992/93 founded a federal commission to establish development projects in the oil producing communities with a share of the revenue from oil, but the Commission's performance has been unsatisfactory. This article argues that it is the people of the oil producing areas who should control their portion of oil revenues and use it for their own development, and considers legal and policy issues associated with the exercise of that control.
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