Nine oil-producing states collected N625.43 billion in 13 percent oil derivation, subsidies, and SURE-P refunds from the Federation Account over a two-year period, the Presidency said on Friday.
According to a statement released on Friday and signed by Garba Shehu, the Senior Special Assistant to the President on Media and Publicity, “the states that received the reimbursements dated from 1999 to 2021 are Abia, Akwa-Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers.”
Oil derivation, subsidies, and Sure-P refunds: Nine oil-producing states collect N625.43 billion in two years; N1.1trn is still owed, according to the statement.
The Presidency added that regardless of allegiance, the Buhari-led administration will continue to provide equitable services to all the states, and “a governor Nyesom Wike of Rivers State and the others is not out of place” in acknowledging this.
Citing information from the Office of the Accountant General of the Federation’s Federation Account Department, it stated that from 2004 to 2019, N477.2 billion was distributed to the nine states as the refund of the 13 percent derivation fund on withdrawal from the Excess Crude Account without deducting derivation, leaving an outstanding balance of N287.04 billion.
The States also received N64.8 billion as a refund of the 13 percent derivation money on deductions made by NNPC from 1999 to December without paying derivation to Oil Producing States.
Shehu claims that the benefiting States still owe the President, Major General Muhammadu Buhari, N860.59bn, which was approved as a windfall from the refunds (retd.).
According to the data, from 2004 to 2019, Abia State received N4.8 billion with an outstanding amount of N2.8 billion, Akwa-Ibom received N128 billion with an outstanding amount of N77 billion, and Bayelsa received N92.2 billion with an outstanding amount of N55 billion.
Cross River received a refund of N1.3 billion with a balance of N792 million, Delta State received N110 billion with a balance of N66.2 billion, Edo State received N11.3 billion with a balance of N6.8 billion, Imo State received N5.5 billion with a balance of N3.3 billion, Ondo State received N19.4 billion with a balance of N11.7 billion, and Rivers State received N103.6 billion with a balance of N62.3 billion.
Between October 2, 2021, and January 11, 2022, the states received eight payments; the ninth through twelfth payments are still unpaid.
The nine oil-producing states received payments in three installments this year on the 13 percent derivation fund on deductions made by NNPC without payment of derivation, with the remaining 17 installments still unpaid.
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 N12.8 billion under this category.
The States that benefited from the exit from the ECA were given N9.2 billion in three installments, due in April, August, and November 2022, as refunds on the 13% derivation exchange rate discrepancy.
Akwa Ibom ($1.6 billion), Delta State ($1.4 billion), and Rivers State ($1.4 billion) were the three States that benefited most (N1.32bn).
Similarly, from 2009 to 2015, all nine states received N4.7 billion apiece, for a total of N42.34 billion, as refunds on withdrawals for subsidies and SURE-P. On November 10, 2022, all the states and local government councils received their refunds.
On the same date in November from 2009 to 2015, the Federation Account also paid N3.52 billion to local government councils as a refund for withdrawals for SURE-P and subsidies.
“President Buhari believes that timely repayment of debts owing to states or anybody else is a matter of honour and decency, regardless of the person’s political partisanship.
Governor Nyesom Wike of Rivers State and the others should acknowledge that the President would continue to provide equal service to all the states of the federation, Shehu added.
