This is certainly good news, and an indication that President Yara'dua may afterall be interested in really resolving the Niger Delta issue for good. Hopefully this is not another mouthing-off like the "Power Emergency", "Seven Point Agenda", "Rule of law", etc.

This is the common sense approach employed all over the world to keep resource communities/owners happy.

Having said that this can only work if:

1. There is a good record of those communities and families to whom resources belong.
2. A water tight legislation by the national assembly - even a constitutional amendment.
3. Foolproof system of distribution so that communities are not being paid in name only.
4. Even within communities individuals should receive a direct cut of this cash.

Nigeria 'to give 10% of oil cash' 

The government says it wants to benefit the people of the delta
Nigerian officials are reportedly planning to give 10% of the country's oil revenues to people in the Niger Delta, an area plagued by insurgencies.

Presidential adviser Emmanuel Egbogah told the UK's Financial Times that the money would go directly to communities, bypassing powerful state governors.

Analysts say the government fears local officials would embezzle the money.

The plan is part of the government's effort to stop militants from attacking oil installations in the delta.

Such attacks have been going on for years, but the government recently held an amnesty and claims to have persuaded a number of leading militants to hand in their arms.

The rebels say they are fighting for a fairer share of oil wealth for delta residents, but frequently resort to killing and kidnapping, and fund their activities by stealing oil.

 
Mr Egbogah told the FT the idea was for the benefits to "flow directly" to the delta people.

"Every community, whether blind or deaf or dumb, every citizen will say: 'I own a part of this business.'"

The FT reports that the plans could see more than 50bn naira ($338m; £207m) diverted to the communities in its first year.

But the BBC's Ahmed Idris in Abuja says the government's proposals have a long way to go before they see the light of day.

He says it is likely to face stiff opposition from the regions outside the delta, because it would mean less revenue for them.

The allocation of Nigeria's oil money is strictly governed by the constitution.