29/09/2022

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How Okowa received largest share of 13% derivation fund in six months, got N114.75billion

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How Okowa received largest share of 13% derivation fund in six months, got N114.75billion

The eight oil-producing states in Nigeria received a sum of N377.93 billion as 13% oil derivation fund in the first half of 2022.

According to data released by the National Bureau of Statistics, Delta, Abia, Akwa Ibom, Bayelsa, Edo, Imo, Ondo, and the Rivers States received N377.93billion in the first half (H1) of 2022. This amount is 46.9 percent higher than what was received in the second half of 2021.

GbaramatuVoice learnt that oil-producing states received N257.2 billion in the second half of 2021.

13 percent oil derivation is an incentive paid to all oil-producing communities through their different states. It was created by the Federal Government as a palliative because of the economic and environmental hazards that oil exploration has done or could do to oil-producing communities.

ALSO READ: Stakeholder complains 13 percent oil derivation fund does not get to host communities

Before the introduction of 13 percent derivation, the oil-rich area otherwise known as the Niger Delta was overwhelmed with a series of agitations. The 13 percent derivation is therefore to encourage oil-producing communities to create enabling environment for more exploration in their regions.

Despite the non-remittance of funds by the Nigerian National Petroleum Corporation (NNPC) to the Federation Account (FAAC), 13 percent of oil derivation funds shared by the communities has increased significantly.

The amount shared in the first six months of 2022 is already 84.2% of the total N448.67 billion shared in the whole of 2021.

A critical analyses of the data showed that Delta State received the largest share during the first half of (H1) 2022, accounting for N114.75 billion representing 30.4% of the total amount shared by the eight states.

Between January and June 2022, Akwa Ibom received a total of N80.02 representing 21.2 percent of the total amount shared. Bayelsa State received a sum of N76.74 billion representing 20.3 percent of the total amount shared during the period under review.

Other states include Rivers N70.44 billion, Edo N14.51 billion, Ondo N9.47 billion, Imo N8.16 billion, and Abia State with N3.84 billion.

See the analysis below:

●Delta State received the highest share, receiving a whooping N114.75 billion between January and June 2022, which accounts for 30.4% of the total amount shared to the eight states.

●Also, Delta State saw its share improve by 79.7% year-on-year compared to the N63.84 billion received in H1 2021. The state received N141.9 billion in the whole of 2021.

●Akwa Ibom State followed with an income of N80.02 billion, which represents 21.2% of the total amount shared.

●Bayelsa received a sum of N76.74 billion as part of the 13% oil derivation, accounting for 20.3% of the total shared amount. It also grew by 114.2% year-on-year compared to N35.83 billion received in the corresponding period of 2021.

●Other states who received part of the funds include Rivers (N70.44 billion), Edo (N14.51 billion), Ondo (N9.47 billion), Imo (N8.16 billion), and Abia (N3.84 billion).

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