Barely 24 hours after President Muhammadu Buhari had accused state governors of embarking on meaningless projects instead of wriggling Nigerians out of poverty the presidency has again put the states in the spotlight, this time, the nine oil producing states.
Buhari had on Thursday accused the governors of thwarting development in the country by tinkering with local government allocations, saying an unnamed state governor misappropriated half of local government funds.
On Wednesday, the federal government also blamed the high poverty rate in the country on state governors, alleging that the failure of the state governments to contribute their quota of development responsibilities is the reason why the poverty level has increased.
Taking on the governors yesterday again, Buhari, through the presidency, stated that 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.
In a statement by presidential spokesman, Garba Shehu, the presidency listed states that received the refunds dating from 1999 to 2021 to include Abia, Akwa-Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers.
He said data obtained from the Federation Account Department in the 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.
Shehu further explained that the states also got N64.8 billion as refund of the 13 percent derivation fund on deductions made by NNPC without payment of derivation to Oil Producing States from 1999 to December.
“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,” he added.
He 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.
“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 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, Shehu noted that the benefitting states shared N9.2billion in three installments in April, August and November 2022 as refunds on the 13 per cent derivation exchange rate differential on withdrawal from the ECA.
He said the three largest benefitting States were Akwa Ibom (N1.6billion), Delta State (N1.4billion) and Rivers State (N1.32billion).
Similarly, the presidential spokesman pointed out that all the nine states received N4.7 billion each, totaling N42.34 billion as refunds on withdrawals for subsidy and SURE-P from 2009 to 2015.
He said the refund, which is for all the states and local government councils, was paid on November 10, 2022.
He added that 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.