Delta State will receive N240 billion in origination while debt hit N272 billion

Delta State Governor

Delta State Government reveals that the federal government has approved payments of N240 billion as arrears of crude oil origin since 2004, saying it has received tranche payments of over N14 billion so far.

This was disclosed in a statement by the financial commissioner of Delta State, Chief Fidelis Tilije, on Monday.

He added that the total debt profile of the state currently stands at N272 billion while the Niger Delta states, led by Rivers State, revealed that they are using derivation arrears to develop infrastructure.

Tilije noted that the N240 billion refund from the Federation Accounts Allocation Committee (FAAC), was not a loan but the state’s share of the 13 percent crude oil arrears from 2004 to date.

  • He said, “The total debt profile of Delta State as we speak is N272 billion. Out of this, N84 billion is due to contractors, and pension arrears is about N27 billion.
  • “What is left is the debt profile, most of that was actually inherited by the Ifeanyi Okowa-led administration.
  • “And in these past months, we have a total expected refund of N240 billion in respect of the 13 per cent oil derivation refund in nine states which is ongoing.
  • “Initially we wanted to phase out several legacy projects that we wanted to complete, we approached the State House of Assembly and got approval to discount N150 billion, which we trimmed down to N100 billion as one bridging finance facility from N240 billion.
  • “I said recently that out of this N240 billion expected from FAAC receipts, Delta has received N14.7 billion in three quarterly installments.”

He added that out of the N100 billion bridging finance, Delta State has accessed N30 billion from the commercial market.

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He also noted that if the state government fully withdraws or fully discounts the N240 billion refund to FAAC, the next successive government will go back to the experience of Gov. Okowa in 2015.

“So, unlike other oil producing states that fully discount their refunds, Okowa has decided to be his brother’s keeper, take a percentage of the N240 billion and leave the rest for the incoming government to accessible for a period of four years.

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  • Besides, if we continue to discount the full N240 billion, we can clear all our debt,” he added.

For the record: Recall that Nairametrics reported last week that the tthe governor of Rivers State, Nyesom Wike has revealed how he is managing many projects in the state which are currently being tasked by many political leaders across party lines.

He said the projects were funded by the accumulated 13% derivation funds, which Rivers and other Niger Delta states have been owed since 1999. The funds were recently released by the presidency.


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