Nigeria's federal government is considering paying local communities royalties for oil produced in their area, Leadership Nigeria reports.

Dr Emmanuel Egbogah, special advisor to the president on petroleum matters said the Niger Delta communities should be paid royalties, as is done in other countries, and that the administration is in the process of addressing the issue.

The federal government is looking to incorporate royalty provision in the new Petroleum Industry Bill and also hoping for an amendment to the Land Use Act to accommodate the oil communities.

Egbogah added the measure would not only apply for the Niger Delta but for all mineral producing areas.