The nine oil producing states, in 2021, shared N450.6 billion from the Federation Account courtesy of the 13 percent derivation formula
Data from the National Bureau of Statistics (NBS) showed that Abia, Akwa Ibom, Bayelsa, Delta, Edo, Imo, Lagos, Ondo, and Rivers states received the funds.
The 13 percent derivation fund comes from the Federal government coffers to oil-producing communities through the State governments as enshrined in section 162, sub-section 2 of the Nigerian constitution.
Analysis of the receipts showed that Delta State received the highest amount of N141.93 billion, or 31 percent of the total revenue from the derivation account.
Delta was followed closely by Akwa Ibom State, which reportedly received N91.16 billion, or 20 percent of the total disbursement during the period.
Other states included Bayelsa (N87.23 billion), Rivers (N83.12 billion), Edo (N17.12 billion), Ondo (N11.50 billion), Imo (N9.98 billion), Abia (N4.78 billion) and Lagos (N3.78 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).
Despite 13 percent derivation, oil-producing states are still battling high domestic debts and suffering from massive infrastructure decay, among several others.
According to the Debt Management Office (DMO), Lagos leads with a total debt of N532.12b billion, followed by Akwa Ibom and Rivers States with N234.85 billion and 226.35 billion, respectively, at the end of Q3 2021.
Delta has a domestic debt of N207.16 billion, followed by Imo, Bayelsa, Abia, Edo and Ondo states with N151.31 billion, N145.80 billion, N89.30 billion, N80.22 billion and N65.42 billion, respectively.
Aside from Lagos ($1.41 billion) and Edo ($280.29 million), no other oil-producing state fell into the top ten list of indebted states (external debts).
What each state earned:
Delta State – N141.93 billion;
Akwa Ibom State – N91.16 billion;
Bayelsa State – N87.23 billion;
Rivers State – N83.12 billion;
Edo State – N17.12 billion;
Ondo State – N11.50 billion;
Imo State – N9.98 billion;
Abia State – N4.78 billion, and
Lagos State – N3.78 billion.
