Top Nigerian States With Highest 13% Oil Derivations, SURE-P Refunds in 2022 as Govs List Projects
- About nine states in Nigeria have received their 13 per cent oil derivation from the Nigerian government
- Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers states are the beneficiaries
- According to the presidency, it released about N625.43 billion to the states as 13 per cent derivation for two years
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On Friday, December 2, 2022, the presidency released a total of N625.43 billion as 13 per cent oil derivations, subsidy and SURE-P refunds from the federation account between 2021 and 2022.
A statement by the senior special assistant to President Muhammadu Buhari, Garba Shehu, disclosed this on Friday.
Source: UGC
Buhari reacts to 13 per cent derivation
Shehu said N1.1 trillion remains unpaid to the states. He named Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers states.
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Bayelsa, which was recently named the second-poorest state in Nigeria, confirmed the receipt of its derivation arrears but said it was underpaid.
Bayelsa received N92 billion as 13 per cent derivation.
The president assured that the refunds to the oil-producing states would continue.
States with the most significant share
TheCable reported that Shehu cited data from the office of the Accountant-General of the Federation and said N477.2 billion was released to nine states from the excess crude account without deducting derivations from 2014 to 2019 with an outstanding balance of N287.04 billion.
Per the presidential spokesman, the states also received N64.8 billion as a refund of the 13 per cent derivations fund on deductions made by the Nigerian National Petroleum Company (NNPC) without payment of derivation to oi-producing states from 1999 to December.
According to Shehu, the states will have an outstanding balance of N860.59 billion from the refunds approved by Buhari.
- Abia received N4.8 billion with an outstanding of N2.8 billion
- Akwa Ibom got N129 billion with an outstanding of N77 billion
- Bayelsa received N92 billion with N55 billion left outstanding
- Cross River got about N1.3 billion with N792 million outstanding
- Delta State received N110 billion and has N66.2 billion as an outstanding
- Edo State received 11.3 billion, with N6.8 billion left as outstanding
- Imo got N5.5 billion with N3.3 billion left as outstanding
- Ondo received N19.4 billion with an outstanding of N11.7 billion
- Rivers received 103 as payment, while N62.6 billion was left outstanding.
The states received the funds in eight instalments between October 2021 and January 2022.
SURE-P refunds by NNPC
Concerning the 13 per cent derivation deductions by NNPC without the payment of derivation, Shehu said the nine oil-producing states received their payments in three instalments in 2022, with 17 instalments still outstanding.
- Abia state received 1.1 billion
- Akwa Ibom received N15 billion
- Bayelsa - N11.6 billion
- Cross River N432 million
- Delta N14.8 billion
- Edo N2.2 billion
- Imo N2.9 billion
- Ondo N3.7 billion
- Rivers N12.8 billion
The nine states shared N9.2 billion in three instalments in April, August and November 2022 as refunds on the 13 per cent derivation exchange rate on withdrawal from the Excess Crude Account.
The biggest benefitting states are Akwa Ibom, with N1.6 billion, Delta, with N1.4 billion and Rivers, with N1.32 billion.
All nine states got N4.7 billion each, which totalled N42.34 billion as refunds on withdrawals for subsidy and SURE-P from 2009 to 2015.
Shehu said that all the refunds were made to the states on November 10, 2022.
Governors reveal what they did with funds
Meanwhile, penultimate week, Rivers state Governor Nyesom Wike stated that his recently-commissioned projects in the state were funded with the state’s 13 per cent derivation arrears paid by the Nigerian government to all Niger Delta states.
He charged other governors to account for their states’ refund.
Shehu said Wike’s acknowledgement of the funds was in order, saying the refunds to the oil-producing states would continue.
Ondo state governor, Rotimi Akeredolu, said the state spent its derivation refunds on projects and salary arrears payments.
Akeredolu listed some of the projects executed, which included road projects.
He said:
“Some of the impactful projects undertaken and completed by this administration include the rehabilitation and asphalt overlay of the 32.6km Araromi-Alape road in Ilaje Local Government Area; 16.65km Ikaramu-Akunnu-chainnage 7-Oke Agbe Road in Akoko Northwest Local Government Area; 4.5km Agadagba Obon-New Ajapa Road in Ese-Odo Local Government Area; 3.0km Oke Igbo Township roads, Ile-Oluji/Okeigbo Local Government Area, among others."
Top oil-producing states in Nigeria are highest debtors, despite huge derivations
Recall that a recent report disclosed that Nigeria’s oil-producing states are also some of the country’s biggest debtors, apart from Lagos and Kaduna.
Legit.ng reported that the Debt Management Office (DMO) stated that the total debts of oil-producing states increased from N2.04 trillion in December 2015 to N3.35 trillion as of the middle of 2022.
The figure indicates a total of N1.311 trillion in borrowings by the states in seven years.
Source: Legit.ng
