Oil-Producing States Get N625bn In Two Years — Presidency

Oil-Producing States Get N625bn In Two Years — Presidency

The Presidency on Friday revealed that nine oil-producing states received N625.43bn 13 percent oil derivation, subsidy, and SURE-P refunds from the Federation Account in two years.

“The states that received the refunds dating from 1999 to 2021 are Abia, Akwa-Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers,” a statement signed by the Senior Special Assistant to the President on Media and Publicity, Garba Shehu, read on Friday.

The statement is titled ‘Oil derivation, subsidy and Sure-P refunds: Nine oil producing states receive N625.43 billion in two years; N1.1trn still outstanding.’

The Presidency also noted that the Buhari-led regime will continue to render equal service to all the states regardless of affiliation, and “an acknowledgment of this by Governor Nyesom Wike of Rivers State and the others is not out of place.”

Citing data obtained from the Federation Account Department, Office of the Accountant General of the Federation, it said a total of N477.2bn was released to the nine states as the refund of the 13 percent derivation fund on withdrawal from Excess Crude Account without deducting derivation from 2004 to 2019, leaving an outstanding balance of N287.04bn.

The States also got N64.8bn as a 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.

According to Shehu, the benefitting States still have an outstanding balance of N860.59bn windfall from the refunds, which was approved by the President, Major General Muhammadu Buhari (retd.).

From the figures, under the 13 per cent derivation fund on withdrawal from ECA without deducting derivation from 2004 to 2019, Abia State received N4.8bn with outstanding sum of N2.8bn, Akwa-Ibom received N128bn with outstanding sum of N77bn, Bayelsa with N92.2bn, leaving an outstanding of N55bn.

Cross River got a refund of N1.3bn with a balance N792m, Delta State received N110bn, leaving a balance of N66.2bn, Edo State received N11.3bn with a balance of N6.8bn, Imo State, N5.5bn, with an outstanding sum of N3.3bn, Ondo State, N19.4bn with an outstanding sum of N11.7bn while Rivers State was paid 103.6bn, with an outstanding balance of N62.3bn.

The states were paid eight installments between October 2, 2021, and January 11, 2022, while the ninth to 12th installments 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 N1.1bn, Akwa-Ibom, N15bn, Bayelsa, N11.6bn, Cross River, N432m, Delta State, N14.8bn, Edo State, N2.2bn, Imo State, N2.9bn, Ondo State, N3.7bn, and Rivers State, N12.8bn.

Meanwhile, the benefitting States shared N9.2bn in three installments 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 (N1.6bn), Delta State (N1.4bn), and Rivers State (N1.32bn).

Similarly, all nine states received N4.7bn each, totaling N42.34bn as refunds on withdrawals for subsidy and SURE-P from 2009 to 2015. The refund for all the states and local government councils was paid on November 10, 2022.

The Federation Account also paid N3.52bn each as a 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 regard 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,” Shehu said.

Newsdesk

Newsdesk

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