How nine oil-producing states shared N970.2b derivation funds in 2022 – Delta got N296.6b, Akwa-Ibom 222.5b
…Despite derivation funds, Delta, Akwa-Ibom, among most indebted states
The nine oil-producing states in Nigeria shared N970.20 billion from the federation account through the 13 percent derivation funds in 2022.
Data from the National Bureau of Statistics (NBS) showed that Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo, and Rivers were states that received the fund.
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 Nigerian constitution.
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The data showed that Delta state received the highest allocation totalling N296.63 billion, representing 31 percent of the total revenue from the derivation account.
Delta is followed closely by Akwa Ibom, having received N222.52 billion, representing 19 percent of the total disbursement during the period.
Other states include Bayelsa (N188.02 billion), Rivers (N169.79 billion), Edo (N37.49 billion), Ondo (N25.95 billion), Imo (N18.61 billion), Abia (N6.95 billion), and Anambra (N4.25 billion).
The 13 percent derivation fund is different from the three percent provided for host communities in the PIA from the oil company’s operating expenses (OPEX).
WHAT EACH STATE GOT IN 2022
- Delta – N296.6bn
- Akwa-Ibom – N222.5bn
- Bayelsa – N188bn;
- Rivers – 169.8bn
- Edo – 37.5bn
- Ondo – N25.9bn
- Imo – N18.6bn
- Abia – N6.95bn
- Anambra – 4.25bn
DESPITE DERIVATION FUNDS, DELTA, AKWA IBOM, AMONG MOST INDEBTED STATES
But despite the 13 percent derivation allocations, oil-producing states are still battling with high domestic debt and suffering from massive infrastructure decay.
See Debt data for the 36 states of the federation and Federal Capital Territory as at December 31, 2022.
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