Nigeria

Bayelsa governor confirms receipt of 13% derivation funds

Bayelsa Governor Douye Diri has admitted that the federal government has paid back the state 13 per cent of the money it owes the state for oil revenues.

Bayelsa Governor Douye Diri has admitted that the federal government has paid back the state 13 per cent of the money it owes the state for oil revenues.

This was announced in a statement released Tuesday in Bayelsa by the governor’s chief press secretary, Daniel Alabra.

The governor has yet to reveal the total amount received so far.

Per subsection (2) of section 162 of the Nigerian constitution, the federation transfers 13 per cent of its revenue from oil exports to state governments for distribution to oil-producing communities.

Wike claimed over the weekend that the states in the Niger Delta region had received refunds from the government of Muhammadu Buhari, and he challenged other governors to account for the windfall.

In response to Wike’s claim, Diri confirmed that the state had been receiving the money and allocating it to infrastructure development.

“For people talking about the 13 per cent derivation funds due to the state, I want to state that for one reason or the other, we were underpaid,” he said.

“When we discovered that, we followed the due process from the state’s Executive Council to the state’s House of Assembly.

“Approvals were given, and the funds were discounted.

“I do not play politics with this kind of thing. Our monthly transparency briefing on our financial income and expenditure is available for anybody who wants to see how we use our money.

“One kilometre of the road we build in Yenagoa is costlier than three or four kilometres of road built elsewhere.”

Bayelsa was one of Nigeria’s nine oil-producing states that received N450.60 billion in 2021 from the nation’s federation account’s 13 per cent derivation fund.

Bayelsa received N87.23 billion, while Delta received N141.93 billion (or 31% of the total revenue from the derivation account).

Bayelsa received N76.7 billion of the total N377.9 billion distributed to the eight oil-producing states in the first half of 2022.