Oil states get N448b extra through 13per cent derivation
By Jeph Ajobaju, Chief Copy Editor
Oil states received N448.67 billion from 13 per cent derivation in 2021, a 5.8 per cent increase above N424 billion in 2020, besides 26.72 per cent from the Federation Account Allocation Committee (FAAC).
The current revenue allocation formula is federal government (52.68 per cent), states (26.72 per cent), councils (20.60 per cent), derivation for oil states (13 per cent).
The latest monthly FAAC report released by the National Bureau of Statistics (NBS) shows that Delta received the highest amount of N141.93 billion or 31.6 per cent of total derivation. Lagos received the lowest, N3.78 billion or 0.8 per cent.
Despite increase in the amount disbursed in 2021, it was less than N536.3 billion in 2019 and N552.5 billion in 2018.
Breakdown of allocation in 2021
- Delta – N141.93 billion, up from N130.57 billion in 2020 (by 8.7 per cent)
- Akwa Ibom – N91.16 billion, down from N94.82 billion (3.9 per cent)
- Bayelsa – N87.23 billion, up from N80.95 billion (7.8 per cent)
- Rivers – N83.12 billion
- Edo State – N15.48 billion
- Ondo State – N11.5 billion
- Imo State – N9.14 billion
- Abia – N4.78 billion
- Lagos – N3.78 billion
- Gombe – N548.05 million (first ever derivation)
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Anambra joins list
Anambra will join oil states and share in the derivation in March 2022, Governor Willie Obiano told reporters after a tour of the Awka International Convention Centre and Anambra Cargo and passenger airport, per Nairametrics reporting.
He said he was informed by the Nigeria Midstream and Downstream Pricing and Regulatory Agency (NMDPRA) which confirmed lifting crude oil in commercial quantity in the state.
The announcement comes 10 years after Orient Petroleum struck crude oil in Anambra. The state had been placed on strategic reserve despite its abundance crude oil and gas.
Oil states biggest debtors
The nine oil states (minus new comer Gombe) account for a big chunk of domestic debt despite extra allocation from the FAAC.
Debt Management Office (DMO) data shows they accounted for 41 per cent of domestic debt in the first nine months of 2021 (9M 2021), with Lagos owing the highest (N532.12 billion).
Lagos saw its domestic debt increase by N23.34 billion in 9M 2021. Its external debt had reached $1.41 billion in 2020.
Akwa Ibom had N234.85 billion domestic debt by 9M 2021 or 6 per cent of the total owed by the 36 states and the Federal Capital Territory (FCT). Akwa Ibom acquired N4.04 billion new domestic loans in 9M 2021.
IGR collection
Six of the nine states were in the top seven internally generated revenue (IGR) collectors in the first half of 2021 (H1 2021), as shown below:
- Lagos – N267.23 billion
- Rivers – N57.32 billion
- Delta – N41.93 billion
- Oyo – N25.19 billion
- Akwa Ibom – N18.09 billion
- Ondo – N17.91 billion
- Edo – N17.64 billion
