Oil States Receive N2.68Tr Derivation Funds

The nine oil producing states; Rivers, Akwa Ibom, Delta, Cross Rivers, Bayelsa and Edo, Imo and Abia, and Ondo  have received a total N2.68 trillion as derivation funds in the past 12 years.

Based on provisions of the Constitution, states are entitled to 13 per cent of revenues derived from minerals exploited within their borders.

As well as receiving the derivation fund on oil produced on their lands, littoral oil states also get the same percentage from oil derived within a certain distance offshore.

Government records show that from May 1999 to December 2011, the nine states collectively received N2.68 trillion as 13 percent mineral revenue derivation.

The records show that out of this amount, the six South-South states with a combined population of 21.04 million got N2.466 trillion. Their population figure amounts to 15.13 per cent of the total Nigeria's population based on the 2006 Census records.

Rivers State has the largest chunk of the derivation funds with N777 billion, followed by Akwa Ibom with N575 billion, Delta N547 billion, Bayelsa N506 billion, Cross River N36.3 billion and Edo N23.1 billion.

The three oil-producing states outside the South-South region with a total population of 10.1 million got N214 billion within the period. The states are Ondo N134.4 billion, Imo N44.6 billion and Abia N36.2 billion.

Comparatively, findings show that the 19 northern states with total population of 73.8 million (53.13 per cent of Nigeria's population) got N1.5 million as mineral revenue derivation within the same period.

The six states of the North-Central got N1.09 million, which is the highest by any region in the North. These were shared as follows: Plateau N534,188; Nasarawa N363,486; Niger N69,430; Kogi N44,925; Benue N32,672; and Kwara N53,093.

For their part, the six North-East states got N311,000, shared as follows: Bauchi N130,691; Taraba N12,252; Adamawa N16, 336; Gombe N144, 355; while Borno and Yobe states got N4,084 each.