Financial Energy Review
The Federal Government still owes nine oil-producing states N1.1 trillion despite receipt of N625.43billion as 13 per cent oil derivation, subsidy and SURE-P refunds from the Federation Account in the last two years, 2021-2022.
The states that received the refunds, according to a statement by the Senior Special Assistant to the President on Media and Publicity, Garba Shehu, dating from 1999 to 2021 are Abia, Akwa-Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers.
The statement was entitled ‘Oil derivation, subsidy and Sure-P refunds: Nine oil producing states receive N625.43billion in two years; N1.1trillion still outstanding.’
The Presidency also noted that the Buhari-led regime would 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 N477.2billion was released to the nine states as refund of the 13 per cent derivation fund on withdrawal from Excess Crude Account without deducting derivation from 2004 to 2019, leaving an outstanding balance of N287.04billion.
The states also got N64.8billion as refund of the 13 per cent derivation fund on deductions made by NNPC without payment of derivation to oil-producing states from 1999.
According to Shehu, the benefitting states still have an outstanding balance of N860.59billion 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 N4.8billion with outstanding sum of N2.8billion; Akwa Ibom received N128billion with outstanding sum of N77billion, Bayelsa with N92.2billion, leaving an outstanding of N55billion.
Cross River got a refund N1.3billion with a balance N792million, Delta State received N110billion, leaving a balance of N66.2billion, Edo State received N11.3billion, with a balance of N6.8billion, Imo State, N5.5billion, with an outstanding sum of N3.3billion, Ondo State, N19.4billion with an outstanding sum of N11.7billion while Rivers State was paid 103.6billion, with an outstanding balance of N62.3billion.
The States were paid in eight installments between October 2, 2021 and January 11, 2022, while the ninth to twelfth 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 installments this year, with the remaining 17 installments outstanding.
Under this category, Abia State received N1.1billion, Akwa-Ibom, N15billion, Bayelsa, N11.6billion, Cross River, N432millio, Delta State, N14.8billion, Edo State, N2.2billion, Imo State, N2.9billion, Ondo State, N3.7billion, and Rivers State, N12.8billion.
