May 30, 2024

13% derivation: Nine oil-producing states receive N869.09bn between January, June, 2023


Oredola Adeola


The nine oil-producing states in Nigeria received a total of N869.09 billion from the Federation Account Statutory Revenue through the 13 percent derivation formula between January and June 2023, according to a report by the Nigerian Extractive Industries Transparency Initiative (NEITI).


The NEITI report was released by Mrs Obiageli Onuorah, Deputy Director/Head Communications & Stakeholders’ Management made this known in a statement obtained by EnergyDay on Sunday.


The nine states are Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo, and Rivers. The report also showed that the nine states received additional allocations as their share of the 13 percent derivation revenue in addition to their share of the statutory allocations which totaled N1.51 trillion received by 36 states out of the total N4.37 trillion shared by the three tiers of the government.


Delta State received the largest allocation among the 36 states in the second quarter, with N102.79 billion, followed by Akwa Ibom and Rivers states, which received N70.01 billion and N69.73 billion, respectively.


However, N6.76 billion was deducted from Delta State’s allocations to service pending debts, the second highest in the period under review, as a result of foreign loans and contractual obligations such as irrevocable standing payment orders (ISPO) and other liabilities standing against each state.


After all the deductions, Delta State’s net allocation of N96.03 billion remained the highest, followed by Rivers (N66.81 billion), Akwa Ibom (N64.81 billion), and Bayelsa (N51.53 billion).