Niger Delta Govs Paid N2trn As Derivation-Minister

Crude oil-producing states have received N1.98 trillion as 13 percent backlog, the federal government has said.

The minister of Finance, Budget, and National Planning disclosed this on Thursday during the sixth edition of the President Muhammadu Buhari administration scorecard (2015-2023) in Abuja, the nation’s capital.

Nigerian crude oil-producing states are paid 13 percent statutorily by the federal government for their contribution to the revenue basket.

Zainab’s revelation came barely one week after Governor Nyesom Wike of Rivers state accused other Niger Delta governors of mismanaging funds paid to them by the federal government as derivation.

The Rivers helmsman had revealed that the President Buhari administration paid all the backlog owed the oil-producing states, saying the governors have nothing to show for the payment.

Speaking on the issue, the minister said the administration met a backlog owed by previous administrations in the country that have now been paid fully.

She said the reason for paying the funds to states is to enable them to develop as federating units without hindrance from the central government, noting that the two levels of government must “work together as one to achieve the targets”.

According to the minister, “One of the key functions of the Ministry of Finance Budget and National Planning is to support the states. We wouldn’t have been able to grow consistently without enabling the states to grow because it is a federation.

“Mr. President has been very uniquely generous in his support to states. I can say no president has provided the level of support provided to the states of the Federation. He understands that the federating units need to work together as one to achieve the targets that he has set for the country.

So everybody goes to support sub-national governments. In seven years, we have disbursed N1.98trn in funds to oil-producing states.”

Governor Wike had while appreciating  President Buhari for releasing the funds, challenged the other Niger Delta governors to account for the billions paid to them as 13 percent derivation.

The governor said: “Let me say it for the first time. So many people asked me: ‘where is he getting this money’? Let me say it. I want, through the Attorney-General of the Federation, to thank Mr President. Monies that were not paid to the Niger Delta states since 1999 — the 13 percent deductions — monies that were not paid, Mr President approved and paid all of us from the Niger Delta states.

“And for me, it would be unfair not to tell the public. It is not from FAAC money. It is the money that is supposed to be for Rivers, Delta, Akwa Ibom, Edo, and Bayelsa states. Yesterday, we commissioned the ninth flyover. In December, we will commission the tenth flyover. By February next year, we will commission eleventh and twelfth flyovers.

“So, I want to sincerely from the heart and on behalf of the government and people of the state, thank Mr President for this, because as an opposition government, he could have said ‘don’t pay’. You can’t do anything. Since 1999, the money has not been paid. Did we do anything? So, I want to sincerely thank him.”