Wetin to know about di 13% oil derivation money Nigeria goment share?

How oil producing states spend di arrears of 13% oil derivation money?

Dat na di major question pipo dey ask afta Rivers state govnor Nyesom Wike make im revelation.

Di govnor reveal say Nigeria President Muhammadu Buhari don approve and release di unpaid 13% derivation deduction since 1999 to all States for di Niger  Delta.

Di tok bin come out as claim but BBC Pidgin reach out to oda states for di region to confam say na true.

Oga Wike during one of im programmes for Port Harcourt say di payment of dis money by President Buhari na di major source of revenue for im projects.

“Make I tok am for di first time. So many pipo dey ask wia i dey get dis money?’ Make I tok am. Na from mister President,” e tok.

E add say “Money wey dem never pay to di Niger Delta states since 1999 wey be di 13 percent deductions presido approve and pay all of us from di Niger Delta states.”

Wetin be dis 13% derivation fund?


Di derivation principle na say if dem dey collect natural resources for any state wey dey bring revenue, goment go give back a certain percentage of dat revenue back to dat State.

Goment go den put di remaining money for di Federation Account wey dem go share to oda States, na so di law tok.

Di 13% derivation fund dey come from di federation revenue to oil producing communities through di State goments as e dey for  Section 162 (2) of di Nigerian constitution.

Di federal goment dey pay dis 13% derivation to oil producing areas as part of benefits transfer scheme for di oil resources wey dem take from di State and eight states currently dey benefit from di scheme

Di states na Rivers, Delta, Akwa Ibom, Edo, Bayelsa states, Imo and Abia states.

Di 13% derivation fund dey different from di 3% money wey dem dey give host communities for di Petroleum Industry Act from di oil company operating expenses (OPEX).

How much States receive

Data from di National Bureau of Statistics (NBS) show say oil producing states for Nigeria share N450.60 billion from di Federation account through di 13 percent derivation formula for 2021.

NBS data show say Abia, Akwa Ibom,  Bayelsa, Delta,  Edo, Imo, Lagos, Rivers and Ondo States receive di money.

Delta State receive di highest amount with a total of N141.93 billion, representing 31% of di total revenue from di derivation account.

Akwa Ibom receive N91.16 billion representing 20%.

  • Bayelsa get N87.22 billion
  • Rivers get N83.12 billion
  • Edo receive N17.12 billion
  • Ondo get N11.50 billion
  • Imo get N9.98 billion
  • Abia get N4.78 billion and
  • Lagos get N3.78 billion.

For di first quarter of 2022, di eight oil-producing states for di kontri receive N144.31 billion from di Federation account.

‘We no intend to leave plenty debt’

Goment officials

Delta State Goment
Delta state goment officials dey tok to tori pipo

“On di 13% derivation,  Governor Okowa goment dey transparent, accountable on all financial dealings on behalf of di pipo,” na so di Delta state goment tok.

Di Niger-Delta state say di total amount due to di state from di 13% derivation arrears na N240 billion out of which di Federal Goment agree to pay in quarterly instalment for a period of five years.

Oga Fidelis Tilije, Commissioner for Finance say contrary to di “revelation” by Wike, Delta State only receive N14.7 billion in three quarterly instalments of N4.9 billion each.

“Wit di agreed amounts settled, some states like Rivers approach commercial banks and discount dia own in full and collect am, but Senator Ifeanyi Okowa say im no go wan leave di next administration with a huge debt burden.

So e decide to discount only N150 billion out of di N240 billion expected receivables but later cut am down to N100 billion, di finance commissioner explain.

“So far, we don get N14.7 billion in three quarterly instalments and we also don access N30 billion out of di N100 billion we apply for as bridging finance.”

‘We no dey play politics wit dis kain tins’

Douye Diri

Bayelsa State Goment
Bayelsa State govnor say dem spend di 13% derivation on infrastructure development

Bayelsa State govnor, Senator Douye Diri  for im reaction  say dem dey spend di 13% oil derivation funds mostly on infrastructure development.

Senator Diri  add say di monthly allocations di State dey receive from di Federation Account always dey public through dia monthly transparency briefings so dem no get any tin to hide.

E come explain say wetin di state receive as 13% derivation refund from di time of di previous administration dey come in instalments.

Dis na afta dem don discount am but add say di amount no make much impact in terms of development.

Governor Diri say di cost of construction for a difficult terrain like Bayelsa dey three or more times dan oda places.

E say di cost of constructing one road project for di State plenty pass di budget to build three or four flyovers for some oda tates even for di Niger Delta.

“For pipo wey dey tok about di 13% derivation funds wey dey due di state, I wan tok here say for one reason or di oda, we bin dey under-paid.

“Wen we discover am, we follow due process from di state executive council to di State House of Assembly.

“We get di approvals and di funds come dey discounted. I no dey play politics with dis kain tin.

“Anybodi  wey wan see how we use our money, our monthly transparency briefings for on our financial income and expenditure dey  available.,” di govnor tok.

We go dey update dis tori wit more informate from oda states