The federal government has confirmed that nine oil-producing states benefited from the disbursed N625.43 billion being 13 per cent oil derivation fund in 2021 and 2022.
Presidential spokesman, Mr. Garba Shehu, said in a statement released yesterday (Friday) that the beneficiaries are Abia, Akwa-Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers states.
From the statement, NewsGazette found that Akwa Ibom State received N128 billion with outstanding sum of N77 billion; Delta State got N110 billion, leaving a balance of N66.2 billion while Rivers was paid 103.6 billion, with an outstanding balance of N62.3 billion.
The publication followed the lid blown by the governor of Rivers State, Mr. Nyesom Wike that the oil-bearing states in the Niger Delta were paid the 13 per cent derivation fund from 1999 and that he used his state’s share of the money to provide infrastructure for his people.
“Let me say it for the first time. So many people asked me: ‘where is he getting this money’? Let me say it. I want, through the attorney general of the federation, to thank Mr. President. Monies that were not paid to the Niger Delta states since 1999 – the 13 per cent deductions – monies that were not paid, Mr. President approved and paid all of us from the Niger Delta states. And for me, it would be unfair not to tell the public,” Wike said at the commissioning of one of his projects last month.
Based on the governor’s declaration, the federal government said in the statement entitled ‘Oil derivation, subsidy and SURE-P refunds: Nine oil producing states received N625.43 billion in two years; N1.1 trillion still outstanding’ said the Buhari-led regime would continue to render equal service to all the states regardless of affiliation.
According to the release, an acknowledgment of the payments by Wike and the others “is not out of place.”
The statement reads: “Nine oil-producing states received a total of N625.43 billion 13 percent oil derivation, subsidy and SURE-P refunds from the Federation Account in the last two years, 2021-2022.
“The states that received the refunds dating from 1999 to 2021 are Abia, Akwa-Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers.
“Data obtained from the Federation Account Department, Office of the Accountant General of the Federation, show that a total of N477.2 billion was released to the nine states as refund of the 13 percent derivation fund on withdrawal from Excess Crude Account (ECA) without deducting derivation from 2004 to 2019, leaving an outstanding balance of N287.04 billion.
“The States also got N64.8 billion as refund of the 13 per cent derivation fund on deductions made by NNPC without payment of derivation to Oil Producing States from 1999 to December.
“The benefitting States still have an outstanding balance of N860.59 billion windfall from the refunds, which was approved by President Muhammadu Buhari.
“According to the figures, under the 13 per cent derivation fund on withdrawal from ECA without deducting derivation from 2004 to 2019, Abia State received N4.8 billion with outstanding sum of N2.8 billion, Akwa-Ibom received N128 billion with outstanding sum of N77 billion, Bayelsa with N92.2bn, leaving an outstanding of N55 billion.
“Cross River got a refund N1.3 billion with a balance N792 million, Delta State received N110 billion, leaving a balance of N66.2 billion, Edo State received N11.3billion, with a balance of N6.8billion, Imo State, N5.5 billion, with an outstanding sum of N3.3 billion, Ondo State, N19.4 billion with an outstanding sum of N11.7bn while Rivers State was paid 103.6 billion, with an outstanding balance of N62.3 billion.
“The States were paid in eight instalments between October 2, 2021 and January 11, 2022, while the ninth to twelfth instalments are still outstanding.
“On the 13 per cent derivation fund on deductions made by NNPC without payment of derivation, the nine oil producing States were paid in three instalments this year, with the remaining 17 instalments outstanding.
“Under this category, Abia State received N1.1 billion, Akwa-Ibom, N15 billion, Bayelsa, N11.6 billion, Cross River, N432 million, Delta State, N14.8 billion, Edo State, N2.2 billion, Imo State, N2.9, billion, Ondo State, N3.7 billion, and Rivers State, N12.8 billion.
“Meanwhile, the benefitting States shared N9.2billion in three instalments in April, August and November 2022 as refunds on the 13 per cent derivation exchange rate differential on withdrawal from the ECA.
“The three largest benefitting States were Akwa Ibom (N1.6billion), Delta State (N1.4billion) and Rivers State (N1.32billion).
“Similarly, all the nine states received N4.7 billion each, totalling N42.34 billion as refunds on withdrawals for subsidy and SURE-P from 2009 to 2015. The refund, which is for all the states and local government councils, was paid on 10th November, 2022.
“The federation account also paid N3.52billion each as refund to local government councils on withdrawals for subsidy and SURE-P from 2009 to 2015 on the same date in November.
“President Buhari considers it a matter of honour and decency that debts owed to states or anyone for that matter be repaid, and in time without regards to their partisan political affiliations.
“The President will continue to render equal service to all the states of the federation and an acknowledgment of this by Governor Nyesom Wike of Rivers State and the others is not out of place.
“The refunds to the oil producing states will continue.”
