How Edo Received N18.2b, Delta N129.5b Oil Derivation Refund 2021-2022 – FG
By Garba Shehu
Nine oil-producing states received a total of 625.43 billion naira 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 477.2 billion naira 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 287.04 billion naira.
The States also got 64.8 billion naira 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 860.59 billion naira 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 4.8 billion naira with outstanding sum of 2.8 billion naira, Akwa-Ibom received 128 billion naira with outstanding sum of 77 billion naira, Bayelsa with 92.2 billion naira, leaving an outstanding of 55 billion naira.
Cross River got a refund 1.3 billion naira with a balance 792 million naira, Delta State received 110 billion naira, leaving a balance of 66.2 billion naira, Edo State received 11.3 billion naira, with a balance of 6.8billion naira, Imo State, 5.5 billion naira, with an outstanding sum of 3.3 billion naira, Ondo State, 19.4 billion naira with an outstanding sum of 11.7 billion naira while Rivers State was paid 103.6 billion, with an outstanding balance of 62.3 billion naira.
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 1.1 billion naira, Akwa-Ibom, 15 billion naira, Bayelsa, 11.6 billion naira, Cross River, 432 million naira, Delta State, 14.8 billion naira, Edo State, 2.2 billion naira, Imo State, 2.9, billion naira, Ondo State, 3.7 billion naira, and Rivers State, 12.8 billion naira.
Meanwhile, the benefitting States shared 9.2 billion naira 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 (1.6 billion naira), Delta State (1.4 billion naira) and Rivers State (1.32 billion naira).
Similarly, all the nine states received 4.7 billion naira each, totalling 42.34 billion naira 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 3.52 billion naira 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.
@views exclusive rights: Garba Shehu, Senior Special Assistant to the President, Media and Publicity, December 2, 2022.