Oil-producing states get N75.410bn as 13 percent derivation

From a total of N1.620 trillion that accrued to the Federation Account Allocation Committee (FAAC) in November 2023, the nine oil-producing states in Nigeria received a total sum of N75.410 billion as 13 percent of mineral revenue.

FAAC disclosed this in a communique, weekend, noting that outside the 13 percent mineral revenue, the federal, state, and local governments received N1.088.783 trillion in revenue in November.

In perspective, Nigeria’s revenue-sharing formula requires that the nine oil-producing states, including Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Imo, Edo, Ondo, and Rivers, receive 13 percent as oil revenue derivative.

“A total sum of N75.410 billion (13 percent of mineral revenue) was shared with the benefiting States as derivation revenue”, FAAC stated.

The figure is an enormous increase compared to the amount received in August 2023, which was N12.324 billion.

FAAC said the balance in the country’s Excess Crude Account was 473.754 million dollars.

Also Read: Niger governor demands 13% derivation like Oil-producing states; threatens to shut down Kainji Dam, other national power infrastructures

PulseNets reports that the Special Adviser to the President on information and Strategy, Bayo Onanuga, said recently that state governors in Nigeria have no reason to fail following the revenue allocation at their disposal.