Wike Puts Governors Of Oil Producing States On A Collision Course With Subjects

By Adesina Soyooye

The Governor of Rivers State,  Nyesom Wike, has caused big trouble for Governors of Oil Producing States. He has put them on a Collision course with their subjects.

Trouble started when Wike, while commissioning one of his many projects, revealed that the funds he has been using came from the arrears  of 13 per cent Oil Derivation Funds paid to them by President Muhammadu Buhari. He profusely thanked Buhari for helping his Government Fund the projects.

Wike: “Let me say 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 per cent 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.”

Wike’s revelation, deliberate or not, put the other Governors under pressure. The question they were being asked is: “What did you do with the billions of Naira paid your States by the Federal Government?

Until Wike, no other Governor had revealed that Buhari had started paying the arrears. So, suddenly, a couple of them was forced to say how much was received, with some of them under-declaring. About two of them indirectly attacked Wike, notably, Bayelsa State Governor, Douye Diri.

Apparently to set the records straight, the Presidency on Friday, in a release signed by Garba Shehu, Presidential Senior Special Assistant on Media and Publicity, made public how much each of the States received, and how much is left. The disclosure is a first.

So far, the release said, N625bn Oil Derivation Funds  has been released to them.

It gave a breakdown of how N625.43 billion 13 percent derivation fund, subsidy and SURE-P refunds were distributed to the nine oil-producing states between 2021 and 2022.

In the statement, Shehu said the states which received the refunds, dating from 1999 to 2021 were Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers.

The outstanding amount to be released, he disclosed, is N1.1 trillion.

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

The States, he revealed, also got N64.8 billion as refund of the 13 per cent derivation fund on deductions made by NNPC without payment of derivation to Oil Producing States from 1999 to December.

The benefitting States still have an outstanding  of N860.59 billion from the refunds, already approved by President Muhammadu Buhari.

According to the figures released by Shehu,  under the 13 per cent derivation fund on withdrawal from ECA without deducting derivation from 2004 to 2019, Abia State received N4.8 billion with outstanding sum of N2.8 billion, Akwa Ibom received N128 billion with outstanding sum of N77 billion, Bayelsa with N92.2bn, leaving an outstanding of N55 billion.

“Cross River got a refund N1.3 billion with a balance N792 million, Delta State received N110 billion, leaving a balance of N66.2 billion, Edo State received N11.3billion, with a balance of N6.8billion, Imo State, N5.5 billion, with an outstanding sum of N3.3 billion, Ondo State, N19.4 billion with an outstanding sum of N11.7bn while Rivers State was paid 103.6 billion, with an outstanding balance of N62.3 billion.

“The States were paid in eight instalments between October 2, 2021 and January 11, 2022, while the ninth to twelfth installments are still outstanding.

“On the 13 per cent derivation fund on deductions made by NNPC without payment of derivation, the nine oil producing States were paid in three instalments this year, with the remaining 17 installments outstanding.

“Under this category, Abia State received N1.1 billion, Akwa-Ibom, N15 billion, Bayelsa, N11.6 billion, Cross River, N432 million, Delta State, N14.8 billion, Edo State, N2.2 billion, Imo State, N2.9, billion, Ondo State, N3.7 billion, and Rivers State, N12.8 billion.

“Meanwhile, the benefitting States shared N9.2billion in three installments in April, August and November 2022 as refunds on the 13 per cent derivation exchange rate differential on withdrawal from the ECA.

“The three largest benefitting States were Akwa Ibom (N1.6billion), Delta State (N1.4billion) and Rivers State (N1.32billion).

“Similarly, all the nine states received N4.7 billion each, totalling N42.34 billion as refunds on withdrawals for subsidy and SURE-P from 2009 to 2015. The refund, which is for all the states and local government councils, was paid on 10th November, 2022.

“The Federation Account also paid N3.52billion each as refund to local government councils on withdrawals for subsidy and SURE-P from 2009 to 2015 on the same date in November.”