26 Feb 13% derivation: Nine oil-producing states shared N450bn in 2021
The nine oil-producing states in Nigeria shared N450.60 billion from the federation account through the 13 percent derivation formula in 2021.
Data from the National Bureau of Statistics (NBS) showed that Delta, Akwa-Ibom, Bayelsa, Rivers, Edo, Ondo, Imo, Lagos and Abia received the fund.
The 13 percent derivation fund is sourced from the federation revenue to oil-producing communities through the state governments as enshrined in section 162, sub-section 2 of the Nigerian constitution.
Delta state received the highest with a total of N141.93 billion, representing 31 percent of the total revenue from the derivation account.
Delta is followed closely by Akwa Ibom, having received N91.16 billion, representing 20 percent of the total disbursement during the period.
Other states include Bayelsa (N87.23 billion), Rivers (N83.12 billion), Edo (N17.12 billion), Ondo (N11.50 billion), Imo (N9.98 billion), Abia (N4.78 billion) and Lagos (N3.78 billion).
The 13 percent derivation fund is different from the three percent provided for host communities in the PIA from the oil company’s operating expenses (OPEX).
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