Oil producing states in the country received a total of N454.35 billion from the Federation Account in 2020, under the 13 per cent Derivation Principle, according to data obtained from the Central Bank of Nigeria (CBN).
The oil producing states in Nigeria are Delta, Akwa-Ibom, Bayelsa, Rivers, Edo, Ondo, Imo, Abia and Lagos. The 13% Derivation allocation which is paid monthly, was in addition to the general and larger monthly allocations received by the states, also from the Federation Account.
Central Bank of Nigeria (CBN), in its Quarterly Economic Reports, disclosed that the amount received by the states from the 13% Derivation allocation in 2020, was 13.46 per cent lower than the N525.03 billion received by the nine states in 2019.
Giving a breakdown of the allocation to the states, the CBN disclosed that the states received N139.47 billion, N113.17 billion, 102.23 billion and N99.48 billion in the first, second, third and fourth quarter of 2020, respectively, compared to N132.54 billion, N126.17 billion, N124.85 billion and N141.47 billion received by the states in the first, second, third and fourth quarters of 2019, correspondingly.
In 2020, the CBN stated that total federally-collected revenue stood at N9.314 trillion, while gross oil revenue stood at 4.733 trillion.
For the fourth quarter figures, the CBN said: “At N2.208 trillion, federally collected revenue in the fourth quarter of 2020 fell by 13.1 per cent and 8.3 per cent below the budget benchmark and the level in the preceding quarter, respectively, and was also 16.8 per cent below the collections in the corresponding period of 2019.
“Oil receipts accounted for 44.6 per cent of the total collection, while non-oil constituted the balance of 55.4 per cent. The relatively low receipts recorded in the review period underscored the lingering effect of the COVID-19 pandemic on domestic and global economic activities.”
It would be recalled that during the launch of the 13-storey head office building of the Niger Delta Development Commission (NDDC) in Rivers State, March 13, Minister of Niger Delta Affairs, Chief Godswill Akpabio, had accused governors of oil producing states of not been able to properly account for the 13 per cent Derivation money allocated to them over the years.
This, of course angered the governors, with Governor Nyesom Wike of Rivers State leading the attack against Akpabio. This came against the backdrop of a report by ACIOE Associates, which stated that eight oil-producing states in the country received N6.589 trillion from the 13% Derivation allocation, between 2009 and 2019, with the funds having little or no impact on the lives of citizens of the various states.
The report had listed the states as Abia, Akwa-Ibom, Bayelsa, Delta, Edo, Imo, Ondo and Rivers states.
The report, among other stakeholders, including the Deputy Senate President, Senator Ovie Omo-Agege, had indicted the governors of the states of mismanaging the funds, and called on the Federal Government to pay the money directly to the oil-producing communities, instead of the governors.
Comment here