Meet 9 Oil-Producing States And Governors With Most Allocations, Derivation Funds in 2024

A recent report by the National Bureau of Statistics (NBS) has disclosed the Nigerian states with the most allocations in 2024

In the first six months of 2024, the nine oil-producing states shared N341.59 billion using the 13 per cent derivation formula.

The states are also some of the most indebted and infrastructure-deficient states in Nigeria

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

In the first six months of 2024, the nine oil-producing states shared N341.59 billion from the federation account via the 13 per cent derivation formula.

The derivation formula is the revenue-sharing plan used by the Federation Account Allocation Committee (FAAC) to distribute a portion of Nigeria’s revenue with the oil-producing states.

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The 9 eligible states

The formula aligns with Section 162(2) of the Nigerian Constitution, which stipulates that 13 per cent of the revenue generated from natural resources such as oil and gas be paid directly to the states where the resources are extracted.

Information from the National Bureau of Statistics (NBS) shows that Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Edo, Imo, and Rivers were the states that received the 13% derivation funds in the first six months of this year.

States with the most allocations in 2024

Analysis of the NBS report shows that Delta got the most allocation, with N113.78 billion, representing 33% of the total disbursement.

Akwa Ibom is next with N70.01 billion, representing 20% of the disbursement.

Other states are Bayelsa with N64.04 billion, Rivers with N58.78 billion, Edo with N11.90 billion, Ondo with N10.05 billion, and Imo with N5.72. billion, Anambra with N4.13 billion, and Abia with N3.19 billion.

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TheCable reports that in 2022, Delta and Akwa Ibom were the oil-producing states with the most amounts from the federation account, with Delta getting N296.63 billion and Akwa Ibom receiving N222.52 billion.

Reports say that in the first half of 2023, the nine oil-producing states shared about N544.9 billion from the federation account. Delta received the largest share, N180.1 billion, followed by Akwa Ibom, N130.8 billion.

States with the highest debts

Experts say that despite these allocations, the oil-producing states face substantial debt burdens and poor infrastructure.

Data from the Debt Management Office (DMO) disclosed that as of the first quarter of 2024, Edo owed the most debts, with N490,67 billion in external and domestic debts.

Delta follows with N413.73 billion, and Rivers with N340.25 billion.

DMO disclosed that other states, such as Imo, owed N265.98 billion, Abia N232.17 billion, Akwa Ibom N199.62 billion, Bayelsa N182.17 billion, Anambra N177.08 billion, and Ondo N123.09 billion.

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Lagos, Delta, top list of states with the highest domestic debt

A previous report by Legit.ng highlighted that the latest data by the DMO says the total domestic debt stock of Nigeria’s 36 states and the Federal Capital Territory (FCT) stood at N5.862 trillion as of December 31, 2023.

The development represents an increase from the N5.337 trillion recorded the previous year.

Source: Legit.ng