Buhari says he has approved N1.7 trillion payment to 9 oil producing states

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President Muhammadu Buhari disclosed that he approved a total payment of N1.7 trillion to the 9 oil producing states as 13% subsidy on oil origin and the refunds of SURE-P owed to them by the federal government .

It also stated that these 9 states were paid N625.43 billion as 13% derivation fund, subsidy, and SURE-P refunds from the federation account in the last 2 years.

This disclosure was contained in a statement on Friday, December 2, on the official Twitter account of President Muhammadu Buhari, where he listed the states that received refunds from 1999 to 2021 including Abia, Akwa-Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo, and Rivers.

According to reports, Abia State received N1.1billion, Akwa-Ibom – N15bn, Bayelsa – N1.6 billion, Cross River – 432 million, Delta – N14.8 billion, Edo – N2.2 billion, Imo – N2. 9billion, Ondo – N3.7billion and Rivers – N12.8 billion.

Approved for 9 oil producing states: President Muhammadu Buhari’s tweet read,

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  • “I have approved payments amounting to N1.7 trillion to 9 oil producing states as refunds owed to them by the Government of Nigeria. As a matter of honour, all the debts owed of states should be paid, regardless of political affiliation. N625B has been paid so far; the balance will be paid in due course.
  • ”The beneficiary states are Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo, and Rivers; and the payments are refunds for the 13 percent oil derivation, Subsidy, and SURE-P, covering the period between 1999 and 2021.’

Payment method: The presidential spokesman, Garba Shehu, in a statement said that the states were paid in 8 installments between October 2, 2021, and January 11, 2022, while the ninth to 12th installments installed not yet.

He recalled data obtained from the Federation Account Department, Office of the Accountant General of the Federation, which he said showed that a total of N477.2 billion was released to the nine states as a refund of 13% which derivation fund to withdraw from the Excess. Crude Account (ECA), without deducting derivation from 2004 to 2019, leaves an outstanding balance of N287.04 billion.

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Shehu said the states also got N64.8 billion as refund of 13% derivation fund on deductions made by the Nigeria National Petroleum Company Limited free of derivation to Oil Producing states from 1999.

He further stated that the beneficiary states have an outstanding balance of N860.59 billion from the refunds, which he said was approved by President Muhammadu Buhari.

If you missed it: Recall that about 2 weeks ago, the governor of Rivers State, Nyesom Wike, challenged his counterparts in the Niger Delta zone to account for the huge amount of money they received as backlog for the 13% oil derivation since 1999, which was approved and paid for by President Muhammadu Buhari.

Wike said that although he can point to projects implemented by his administration using Rivers monies, some of his colleagues could not show any proof.

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