Wike’s revelation: Presidency releases breakdown of N625bn oil derivation funds to states

The Presidency has given a breakdown of how N625.43 billion 13 percent derivation fund, subsidy and SURE-P refunds were distributed to nine oil-producing states between 2021 and 2022. There has been controversy among Niger Delta governors since Nyesom Wike, their Rivers’ counterpart, disclosed that President Muhammadu Buhari had released the funds. “Let me say it […]

The Presidency has given a breakdown of how N625.43 billion 13 percent derivation fund, subsidy and SURE-P refunds were distributed to nine oil-producing states between 2021 and 2022.

There has been controversy among Niger Delta governors since Nyesom Wike, their Rivers’ counterpart, disclosed that President Muhammadu Buhari had released the funds.

“Let me say it for the first time. So many people asked me: ‘where is he getting this money’? Let me say it. I want, through the Attorney-General of the Federation, to thank Mr President. Monies that were not paid to the Niger Delta states since 1999 — the 13 percent deductions — monies that were not paid, Mr President approved and paid all of us from the Niger Delta states. And for me, it would be unfair not to tell the public,” Wike had said at a project commissioning last month.

After the disclosure, each of the governors issued statement to set records straight and explain how their states’ funds were spent.

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Wike: Buhari released funds, Jonathan, others refused to pay Niger Delta states

However, in a statement on Friday, the presidency disclosed who go what from the money released.

The Senior Special Assistant to the President on Media and Publicity, Malam Garba Shehu, in a statement, said the states that received the refunds dating from 1999 to 2021 were Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers.

He put the outstanding amount to be released at N1.1 trillion.

The presidential spokesman said data obtained from the Federation Account Department, Office of the Accountant General of the Federation, showed that a total of N477.2 billion was released to the nine states as refund of the 13 percent derivation fund on withdrawal from Excess Crude Account (ECA) without deducting derivation from 2004 to 2019, leaving an outstanding balance of N287.04 billion.

He said the states also got N64.8 billion as refund of the 13 per cent derivation fund on deductions made by NNPC without payment of derivation to Oil Producing States from 1999 to December.

Shehu said the benefitting States still have an outstanding balance of N860.59 billion windfall from the refunds, which was approved by President Muhammadu Buhari.

According to the figures, under the 13 per cent derivation fund on withdrawal from ECA without deducting derivation from 2004 to 2019, Abia State received N4.8 billion with outstanding sum of N2.8 billion, Akwa Ibom received N128 billion with outstanding sum of N77 billion, Bayelsa with N92.2bn, leaving an outstanding of N55 billion.

He added: “Cross River got a refund N1.3 billion with a balance N792 million, Delta State received N110 billion, leaving a balance of N66.2 billion, Edo State received N11.3billion, with a balance of N6.8billion, Imo State, N5.5 billion, with an outstanding sum of N3.3 billion, Ondo State, N19.4 billion with an outstanding sum of N11.7bn while Rivers State was paid 103.6 billion, with an outstanding balance of N62.3 billion.

“The States were paid in eight instalments between October 2, 2021 and January 11, 2022, while the ninth to twelfth instalments are still outstanding.

“On the 13 per cent derivation fund on deductions made by NNPC without payment of derivation, the nine oil producing States were paid in three instalments this year, with the remaining 17 instalments outstanding.
“Under this category, 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 State, N12.8 billion.

“Meanwhile, the benefitting States shared N9.2billion in three instalments in April, August and November 2022 as refunds on the 13 per cent derivation exchange rate differential on withdrawal from the ECA.

The three largest benefitting States were Akwa Ibom (N1.6billion), Delta State (N1.4billion) and Rivers State (N1.32billion).

“Similarly, all the nine states received N4.7 billion each, totalling N42.34 billion as refunds on withdrawals for subsidy and SURE-P from 2009 to 2015. The refund, which is for all the states and local government councils, was paid on 10th November, 2022.

“The Federation Account also paid N3.52billion each as refund to local government councils on withdrawals for subsidy and SURE-P from 2009 to 2015 on the same date in November.”

The presidential spokesman said President Buhari considered it a matter of honour and decency that debts owed to states or anyone for that matter be repaid, and in time without regards to their partisan political affiliations.

He added that the President would continue to render equal service to all the states of the federation and an acknowledgment of this by Governor Nyesom Wike of Rivers State and the others was not out of place, stressing that “The refunds to the oil producing states will continue.”