Okowa, Obaseki Lied As Presidency Confirms N625.43bn Released To Oil-Producing States

Details have emerged regarding the exact amounts individual Niger Delta states got as refund of the 13% derivation owed to the oil-producing states by the Federal Government.

The Presidency released the details on Friday amid denials by some state governments regarding how much they were refunded. The details showed that Delta and Edo state governments lied about how much they got.

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Controversy had trailed the revelation by Rivers State Governor, Nyesom Wike, that the Muhammadu Buhari administration had paid a backlog of monies deducted from the Excess Crude Account (ECA) since 1999 that should have been paid to the nine oil-producing states as 13% derivation.

The states are Abia, Akwa-Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers.

Wike made the revelation last week Friday during the inauguration of the Port Harcourt campus of the Nigerian Law School, saying it is the share that got to Rivers that he has been using to execute projects in the state.

Following the disclosure, some Nigerians called for probe into the administrations of the Niger Delta governors on the grounds that they’ve achieved little to nothing despite receiving hundreds of billions from the Federal Government.

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But responding, the Delta State Government, through its Commissioner for Finance, Fidelis Tilije, claimed that it only received N14.7 billion from the N240 billion expected refunds.

Similarly, Edo State Commissioner for Budget and Planning, Mr. Joseph Eboigbe, announced at a press conference in Benin-city that the state only received N2.1 billion in three tranches of N700 million out of N28 billion due to the state.

Contrary to their claims, Garba Shehu, senior media assistant to President Buhari, revealed in a press statement on Friday that “Delta State received N110 billion, leaving a balance of N66.2 billion” while “Edo State received N11.3billion, with a balance of N6.8billion” in the last two years.

Shehu said the 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 statement reads, “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.

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“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.

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“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.”

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