Trendsofnigera is online newspaper where you get latest entertainment news updates from Nigeria.

Buhari says he approved N1.7 trillion payment to 9 oil-producing states

President Muhammadu Buhari has revealed that he approved a total payment of N1.7 trillion to 9 oil-producing states as 13% oil derivation subsidy and SURE-P refunds owed them by the federal government.

It also stated that these 9 states have been paid N625.43 billion as 13% derivation fund, subsidy, and SURE-P refunds from the federation account in the last 2 years.

This disclosure is contained in a statement on Friday, December 2, on President Muhammadu Buhari’s official Twitter account, where he listed the states to have received the refunds dating from 1999 to 2021 including Abia, Akwa-Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo, and Rivers.

According to reports, Abia State received N1.1billion, Akwa-Ibom – N15bn, Bayelsa – N1.6 billion, Cross River – 432 million, Delta – N14.8 billion, Edo – N2.2 billion, Imo – N2.9billion, Ondo – N3.7billion and Rivers – N12.8 billion.

Approved for 9 oil-producing states: President Muhammadu Buhari’s tweet reads,

News continues after this ad

  • ‘’I have approved payments totaling N1.7 trillion to 9 oil-producing states as refunds owed them by the Nigerian Government. As a matter of honor, all debts owed to states must be paid, regardless of political affiliation. N625B has been paid so far; the balance will be paid in due course.
  • ‘’The benefiting states are Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo, and Rivers; and the payments are refunds for 13 percent oil derivation, Subsidy, and SURE-P, covering the period between 1999 and 2021.’

Mode of payment: The presidential spokesman, Garba Shehu, in a statement noted that the states were paid in 8 installments between October 2, 2021, and January 11, 2022, while the ninth to 12th installments are still outstanding.

He recalled data obtained from the Federation Account Department, Office of the Accountant General of the Federation, which it said showed that a total of N477.2 billion was released to the nine states as a refund of the 13% derivation fund on withdrawal from Excess Crude Account (ECA), without deducting derivation from 2004 to 2019, leaving an outstanding balance of N287.04 billion.

News continues after this ad

Shehu said states also got N64.8 billion as a refund of the 13% derivation fund on deductions made by Nigeria National Petroleum Company Limited without payment of derivation to Oil Producing states from 1999.

He further stated that the benefitting states still have an outstanding balance of N860.59 billion from the refunds, which he said was approved by President Muhammadu Buhari.

In case you missed it: Recall that about 2 weeks ago, the Rivers State governor, Nyesom Wike, challenged his counterparts in the Niger Delta zone to account for the huge sums of monies received by them as a backlog for the 13% oil derivation since 1999, which was approved and paid by President Muhammadu Buhari.

Wike said that while he can point to the projects executed by his administration with the monies in Rivers, some of his colleagues cannot show any proof.

Leave A Reply

Your email address will not be published.