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Presidency Vindicates Wike, Breaks Silence on Derivation arrears controversy

Presidency Vindicates Wike, Breaks Silence on Derivation arrears controversy

Presidency Vindicates Wike, Breaks Silence on Derivation arrears controversy

The Presidency has released details of oil derivation refunds made to Niger Delta/oil-producing states within two years (2021 and 2022). 

Presidential spokesperson Garba Shehu shared the details in a statement released Friday amid the allegations that some regional governments had misused the funds.

This is a swift response to the controversy trailing the remittance and deployment of the 13% Derivation Fund and other funds from the Federal Government.

Governors of the nine oil-producing States have been trying to defray reactions trailing revelations by their Rivers counterpart Nyesom Wike that his projects have been executed with a backlog of 13% Derivation Fund, paid by the Muhammadu Buhari’s administration.

Wike challenged his colleagues in the oil-producing region to show Nigerians what they have done with their funds.

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According to the statement released by Shehu, the nine oil-producing states received a total of N625.43 billion 13 percent oil derivation, subsidy, and SURE-P refunds from the Federation Account between 2021 and 2022.

Citing figures from the Accountant General of the Federation’s office, Shehu explained that the refunds were monies that should have been paid as a 13 percent derivation when the federal government made deductions from the Excess Crude Account over the years. 

In the details provided, Akwa Ibom and Delta States got the largest refunds.

The statement further indicates that the benefitting states still have an outstanding N860.59 billion windfall from the refunds. 

List of Niger Delta states Abia Akwa Ibom Bayelsa 

Shehu said President Buhari approved the refunds because he considers it a matter of honour and decency that debts owed to states, or anyone for that matter, be repaid and in time without regard to their partisan political affiliations. 

He added that the president would continue to render equal service to all the states of the Federation, adding that Governor Wike’s acknowledgment of the gesture is not out of place, The Punch also reported. 

Read the complete statement below: 

OIL DERIVATION, SUBSIDY, AND SURE-P REFUNDS: NINE OIL PRODUCING STATES RECEIVE N625.43 BILLION IN TWO YEARS; N1.1 TRN STILL OUTSTANDING 

Nine oil-producing states received a total of N625.43 billion 13 percent oil derivation, subsidy and SURE-P refunds from the Federation Account in the last two years, 2021-2022. 

The states that received the refunds dating from 1999 to 2021 are Abia, Akwa-Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo, and Rivers.

Data obtained from the Federation Account Department, Office of the Accountant General of the Federation, show that a total of N477.2 billion was released to the nine states as a 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. 

The States also got N64.8 billion as a refund of the 13 percent derivation fund on deductions made by NNPC without payment of derivation to Oil Producing States from 1999 to December.

The benefitting States still have an outstanding balance of N860.59 billion windfall from the refunds, which President Muhammadu Buhari approved. According to the figures, under the 13 percent derivation fund on withdrawal from ECA without deducting derivation from 2004 to 2019, Abia State received N4.8 billion with an outstanding sum of N2.8 billion, Akwa-Ibom received N128 billion with an outstanding sum of N77 billion, Bayelsa with N92.2bn, leaving an outstanding of N55 billion. 

Cross River got a refund of N1.3 billion with a balance of 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. At the same time, Rivers State was paid 103.6 billion, with an outstanding balance of N62.3 billion. 

The States were paid in eight installments between October 2, 2021, and January 11, 2022, while the ninth to twelfth installments 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. 

President Buhari considers 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. 

The President will 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 is not out of place. The refunds to the oil producing states will continue. 

The refunds to the oil producing states will continue

Presidency Vindicates Wike, Breaks Silence on Derivation arrears controversy

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