I can’t speak for Britain, but in all of my five semesters of American calculus and calc-related math classes, I have only ever heard [dɪˈrɪv.ə.tɪv]
in that context — or any context, now that I think about it.
I just googled derivative noun pronunciation and ended up at the Oxford Advanced Learner’s Dictionary. It seems to agree that [dɪˈrɪv.ə.tɪv]
is the only pronunciation.
I’m sure there has to be a British math geek around here somewhere who knows for certain. :)
I'd say that your German colleagues are mishearing the English pronunciations.
The German letter ü makes the sound [y], which does not occur in English.
The words loose, poodle, food, and most other words with oo have the vowel [u], which is usually spelled u or uh in German. Historically this is a long /o/ sound that was written with "oo", the pronunciation of which has shifted to [u] as a result of the Great Vowel Shift.
Some words with oo have instead the vowel [ʊ]: good, hood, book. There is no rule that predicts which words have this pronunciation, so you have to memorize it. The [ʊ] sound occurs in German as an allophone of /u/ in closed syllables. The vowel [ʊ] is shorter, more lax, and slightly centralized relative to [u]. This sound also tends to come from an older long /o/, though the reasons for this split are complicated and obscure.
A very small number of words with oo are pronounced with an [o] vowel: door, floor. These words always end in r, because the final r colors the preceding vowel. This is the same sound that is spelled o or oh in German.
Best Answer
I'm afraid I vary my pronunciation of "nihilist / nihilism" to suit the sentence and my audience. "Nee-(h)il-ist", with a very soft "h", feels most correct to me, but for people who haven't studied philosophy (or who forgot it as soon as they left college), "ny-il-ist" is easily recognized from "annihilation" (I have never heard anyone pronounce that word as "an-nee-(h)il-ation").
My favorite sighting (hearing?) of "nee-(h)il-ist" is in the (NSFW) song 88 Lines About 44 Women by The Nails; at about 4:12 he mentions #39: