6 days Ago By Tony Chukwunyem
Thirteen per cent derivation revenue payments to Nigeria’s oil-producing states from the Federation account rose by 102.35 per cent (N620.57 billion) to N1.
23 trillion in the first 11 months of this year, compared with N606.31 billion in the corresponding period of 2023, findings by New Telegraph has shown. An analysis of Federation Account Allocation Committee (FAAC) communiqués and data released by the National Bureau of Statistics (NBS) indicates that the oil producing states received N57.
92 billion in January, N85.10 billion in February, N166.24 billion in March, N90.
12 billion in April, N106.50 billion in May , N95.60 billion in June, N109.
82 billion in July 2024, N99.47 billion in August, N90.42 billion in September, N132.
40 billion in October and N193.29 billion in November as 13 per cent derivation revenue payments from FAAC. The country’s oilproducing states such as, Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Imo, Edo, Ondo, and Rivers, are statutorily required to be paid 13 per cent of oil revenue from the Federation Account as Derivation Fund, which they are expected to use for the exclusive benefit of their oil/ gas producing communities whose environments are usually negatively impacted by mineral exploration and production activities.
For instance, a statement released by the Director, Information and Public Relations at the Federal Ministry of Finance, Mohammed Manga, last Friday, on the outcome of the FAAC meeting for December, said that the committee shared a total sum of N1.727 trillion to the three tiers of government as Federation Allocation for the month of November, 2024 from a gross total of N3.143 trillion.
The statement further said: “From the stated amount inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), Exchange Difference (ED), the Federal Government received N581.856 billion, the States received N549.792 billion, the Local Government Councils got N402.
553 billion, while the Oil Producing States received N193.291 billion as Derivation, (13% of Mineral Revenue). “The sum of N103.
307 billion was given for the cost of collection, while N1.312 trillion was allocated for Transfers Intervention and Refunds.” Analysts note that compared with the last few years, the country’s 36 states have generally benefitted from higher FAAC allocations this year, especially from exchange rate gains in the oil sector, occasioned by the reforms introduced by the President Bola Tinubuled administration which assumed power on May 29, last year.
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