National News

13% Derivation: Delta gets lion’s share of N180bn, as oil producing states receive N544.9bn in 6-months

Commence vital projects within the Ijaw Areas, IYC tells Delta Governor - Rt. Hon. Sheriff Oborevwori

…Akwa-Ibom N130bn, Bayelsa N92bn, Rivers N92bn

Nine oil producing states shared N544.9 billion from the federation account, through the 13 percent derivation formula, in the first half of 2023.

National Bureau of Statistics (NBS) data showed that Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo, and Rivers were states that received the funds.

The 13 percent derivation fund comes from the federation revenue to oil producing communities through the state governments, as enshrined in section 162, sub-section 2 of the constitution.

According to the report dat, Delta state received the highest allocation totalling N180.1 billion, representing 33 percent of the total revenue from the derivation account.

Delta is followed closely by Akwa Ibom, having received N130.8 billion, representing 24 percent of the total disbursement.

Other states include Bayelsa (N92.9 billion), Rivers (N92.7 billion), Edo (N17.5 billion), Ondo (N16.9 billion), Imo (N6.2 billion), Abia (N2.4 billion), and Anambra (N5.4 billion).

The 13 percent derivation fund differs from the three percent provided for host communities in the Petroleum Industry Act (PIA), from the oil companies operating expenses (OPEX).

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