Edo got N11.3bn, not N1.2bn — FG releases details of oil revenue

Edo got N11.3bn, not N1.2bn — FG releases details of oil revenue


The federal government said Edo State government received the sum of NN11.3 billion share out of the N625.43 billion disbursed as 13 percent oil derivation, subsidy and SURE-P refunds from the federation account between 2021 and 2022.

Akwa-Ibom got N128bn, Bayelsa received N92bn’ respectively from the funds which were disbursed among the nine oil producing States of the federation.

Garba Shehu, Senior Special Assistant to the President on Media and Publicity, disclosed the details of derivation refunds in a statement on Friday.

He revealed that the sum of N1.1 trillion is yet to be repaid to the States including Abia, Akwa-Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers, according to Shehu.

The revelation comes barely one week after Edo State government said the sum of N2.1 billion allocated to the State from the 13 per cent derivative funds for oil producing States by the federal government since 1999, were too small to be made public when compared to over N3 billion Internationally Generated Revenue (IGR) of the State.

Mr Crusoe Osagie, Special Adviser on Media Project to Edo State Governor Godwin Obaseki who spoke on ITV Radio Pidgin English programme tagged Man Around Town’ in Benin, last week Friday, admitted that Edo government has received N700 million each in three tranches (September, October and November) out of the total sum of N28 billion, which will be fully paid in a period of five years.

He said, “I had explained that the money came in September, October and November — N700 million each. And you said why didn’t the government announce it? I am saying that the money is too small to be announced. N700 million came to Edo State per quarter (four months). We earn over N3 billion per month from IGR. We do not do live Broadcast to announce that”.

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His assertion followed Rivers State governor, Nyesom Wike challenge to Governors in oil producing areas to disclose how they spent their share while inaugurating some projects that he funded with oil revenue that accrued to his State.

Similarly, the Bayelsa State government admitted that it also received its derivation arrears but claimed it was underpaid by the federal government.

The Akwa Ibom state government also confirmed receipt of N186 billion derivation arrears.

But, the Presidential aide, Sehehu said acknowledgment of the refunds by Wike and other governors is not out of place, assuring that the refunds to the oil producing States would continue.

According to Shehu, “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,” Shehu said.

“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.”

While relying on the data obtained from the federation account department, office of the accountant-general of the federation, Shehu said 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 Presidential aide stated further that the States also got N64.8 billion as refund of the 13 percent derivation fund on deductions made by the Nigerian National Petroleum Company (NNPC) without payment of derivation to oil producing states from 1999 to December.

He also explained that 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 percent derivation fund on withdrawal from ECA without deducting derivation from 2004 to 2019, Abia 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,” Shehu said.

“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 received N11.3 billion, with a balance of N6.8 billion, Imo, N5.5 billion, with an outstanding sum of N3.3 billion, Ondo N19.4 billion with an outstanding sum of N11.7 billion while Rivers 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 percent 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 N14.8 billion, Edo N2.2 billion, Imo N2.9 billion, Ondo State N3.7 billion, and Rivers N12.8 billion.

“Meanwhile, the benefitting States shared N9.2billion in three instalments in April, August and November 2022 as refunds on the 13 percent 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).”

Shehu said that 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.

He explained that the refund, which is for all the states and local government councils, was paid on November 10, 2022.

The federation account also paid N3.52 billion each as refund to local government councils on withdrawals for subsidy and SURE-P from 2009 to 2015 on the same date in November, according to him.

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