The Presidency revealed on Friday that nine oil-producing states received N625.43 billion in the last two year. The fund was made up of 13 percent oil derivation, and Subsidy Reinvestment and Empowerment Programme (SURE-P) refunds from the Federation Account.
According to a statement by the Senior Special Assistant to the President on Media and Publicity, Mallam Garba Shehu: “The states that received the refunds dating from 1999 to 2021 are Abia, Akwa-Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers”.
The statement stated that N1.1 trillion remains outstanding.
The Presidency also noted that the Muhammdu 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, the Presidency said that N477.2bn was released to the nine states as the 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.
The states also got N64.8 billion as a refund of the 13 percent derivation fund on deductions made by NNPC without payment of derivation to oil producing states from 1999 to December.
According to Shehu, the benefitting states still have an outstanding balance of N860.59 billion windfall from the refunds, which was approved by President Muhammadu Buhari.
From the figures, under the 13 per cent derivation fund on withdrawal from ECA without deducting derivation from 2004 to 2019, Abia State received N4.8 billion with outstanding sum of N2.8 billion, Akwa-Ibom received N128 billion with outstanding sum of N77 billion, Bayelsa with N92.2 billion, leaving an outstanding of N55 billion.
Cross River got a refund of N1.3 billion with a balance N792 million, Delta State received N110 billion, leaving a balance of N66.2 billion, Edo State received N11.3 billion with a balance of N6.8 billion, Imo State, N5.5 billion, with an outstanding of N3.3 billion, Ondo State, N19.4 billion with an outstanding N11.7 billion, while Rivers State was paid N103.6 billion, with an outstanding balance of N62.3 billion.
The states were paid eight installments between 2nd October 2021, and 11th January, this year, while the ninth to 12th 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 instalments this year, with the remaining 17 instalments outstanding.
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.
The benefitting states shared N9.2 billion in three installments in April, August, and November, this year as refunds on the 13 percent derivation exchange rate differential on withdrawal from the ECA.
The three largest benefitting states were Akwa Ibom (N1.6 billion), Delta State (N1.4 billion), and Rivers State (N1.32 billion).
Similarly, all nine states received N4.7 billion each, totaling N42.34 billion as refunds on withdrawals for subsidy and SURE-P from 2009 to 2015. The refund for all the states and local government councils was paid last 10th November.
The Federation Account also paid N3.52 billion each as a 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 regard 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”, Shehu said.
