Between January and July 2022, Nigeria’s oil-producing states received N377.9 billion from the 13 percent oil derivation fund.
According to data released by the National Bureau of Statistics, Delta, Abia, Akwa Ibom, Bayelsa, Edo, Imo, Ondo, and the Rivers States received N377.9 billion in the first half (H1) of 2022. This amount is 46.9 percent higher than what was received in the second half of 2021.
Investors King learnt that oil-producing states received N257.2 billion in the second half of 2021.
13 percent oil derivation is an incentive paid to all oil-producing communities through their different states. It was created by the Federal Government as a palliative because of the economic and environmental hazards that oil exploration has done or could do to oil-producing communities.
Before the introduction of 13 percent derivation, the oil-rich area otherwise known as the Niger Delta was overwhelmed with a series of agitations. The 13 percent derivation is therefore to encourage oil-producing communities to create enabling environment for more exploration in their regions.
Despite the non-remittance of funds by the Nigerian National Petroleum Corporation (NNPC) to the Federation Account (FAAC), 13 percent of oil derivation funds shared by the communities has increased significantly.
A critical analyses of the data showed that Delta State received the largest share during the first half of (H1) 2022, accounting for N114.75 billion representing 30.4% of the total amount shared by the eight states.
Between January and June 2022, Akwa Ibom received a total of N80.02 representing 21.2 percent of the total amount shared. Bayelsa State received a sum of N76.74 billion representing 20.3 percent of the total amount shared during the period under review.
Other states include Rivers N70.44 billion, Edo N14.51 billion, Ondo N9.47 billion, Imo N8.16 billion, and Abia State with N3.84 billion.
