Matters Arising from the 13% derivation fund to Delta state

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Governor Ifeanyi Okowa

Matters Arising from the 13% derivation fund to Delta state

By GbaramatuVoice Newspaper

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.

As we all know, 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: How Okowa received largest share of 13% derivation fund in six months, got N114.75billion

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.

Now, looking at the above frightening figure received by the Delta State Government, it will elicit the following questions:

  1. If truly the quoted amount was received by the state within the period under review, how much did the state allocate to the Delta state Oil Producing Areas Development Commission (DESOPADEC)? For emphaisis, DESOPADEC is an agency created by enabling Act, and charged with the responsibility of developing crude oil bearing communities in the state.
  2. If funds were allocated to DESOPADEC by the state Government, why has the Commission recently become an agency that exists only in the frames with abandoned projects littered across the reverine/coastal parts of the state?
  3. How come Governor Okowa led administration still owe pensioners in the state in the face of this huge sum received?
  4. Why is the state unable to subsidize education in its tertiary institutions where school fees have skyrocketed beyond the reach of students of poor parents?
  5. Why is the state still in the habit of borrowing despite this quantum sum received?
  6. How do we reconcile the fact that the state is in possession of the said sum, yet, majority of towns and villages, particularly in the coastal areas cannot boast of passable internal roads?
  7. Who is the real enemy of Niger Delta region: Federal or State Governments?

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