Oil Derivation: Nine Oil-Producing States Have Received N625.43 Billion, Subsidy, Says FG

The presidency has announced that nine oil-producing states have already collected N625.43 billion in 13 percent oil derivation, subsidies, and SURE-P refunds from the Federation Account between 1999 and 2021.

The impacted states that received the reimbursements spanning from 1999 to 2021 were Abia, Akwa-Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo, and Rivers, according to a statement released on Friday in Abuja by Malam Garba Shehu, the president's media advisor.

According to information provided by the Office of the Accountant General of the Federation's Federation Account Department, N477.2 billion was distributed to the nine states as a return of the 13% derivation fund upon withdrawal from the Excess Crude Account, according to Shehu (ECA)

He said that this was before the derivation from 2004 to 2019 was subtracted, leaving an unpaid amount of N287.04 billion.

He claimed that the states also received N64.8 billion as a refund of the 13 percent derivation fund on NNPC deductions made from 1999 to the present without payment of derivation to oil-producing states.

He said that the benefiting states still owe N860.59 billion from the refunds, which President Muhammadu Buhari approved, as a windfall.

The figures show that from 2004 to 2019, under the 13% derivation fund on withdrawal from ECA without deducting derivation,

He said: "Abia received N4.8 billion with an outstanding sum of N2.8 billion, Akwa-Ibom received N128 billion with an outstanding sum of N77 billion, Bayelsa with N92.2bn, leaving an outstanding sum of N55 billion.

"Cross River got a refund of N1.3 billion with a balance of N792 million, Delta received N110 billion, leaving a balance of N66.2 billion, Edo received N11.3billion, with a balance of N6.8billion, Imo, N5.5 billion, with an outstanding sum of N3.3 billion and Ondo State, N19.4 billion with an outstanding sum of N11.7bn.”

Shehu continued, saying that Rivers received 103.6 billion in compensation and had an N62.3 billion balance due.

The impacted states were paid in eight instalments between October 2, 2021, and January 11, 2022, according to the presidential adviser, but the ninth through twelfth instalments are still unpaid.

Shehu stated that the nine oil-producing states were paid in three instalments this year, with the remaining 17 instalments still unpaid, regarding the 13 percent derivation fund on deductions made by the NNPC without payment of derivation.

"Under this category, Abia 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.”

Shehu also disclosed that the states that benefited from the withdrawal from the ECA were given N9.2 billion in three instalments—in April, August, and November—as refunds for the 13 percent derivation exchange rate differential.

Akwa Ibom ($1.6 billion), Delta State ($1.4 billion), and Rivers ($1.4 billion) were the three states that benefited the most (N1.32 billion).

"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 Nov. 10, 2022.

”The Federation Account also paid N3.52billion 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,” he added.

Shehu claimed that Buhari believed that the timely repayment of debts owing to states or anyone else, in general, was a question of honour and decency regardless of the person's partisan political connections.

"The president will continue to render equal service to all the states of the federation and an acknowledgement of this by Gov. Nyesom Wike of Rivers State and the others was not out of place.

"The refunds to the oil-producing states will continue,” Shehu further assured.