…received N424bn 13% derivation in 2020 Akwa Ibom, others top debtors’ list
Despite receiving huge allocation in the sum of N424 billion in 2020 and much more in previous years as their share of 13 per cent derivation principle, eight oil producing states in the country are still heavily burdened with total debt of N1.667 trillion as of March 31, 2021 findings have revealed.
List of Nigeria’s oil producing states including the quantum of barrels of crude form the states are Akwa Ibom – the largest oil producer with 31.4 per cent (504,000 BPD), Delta – 21.56 per cent (346,000 BPD), Riv-ers – 21.43 per cent (344,000 BPD), Bayelsa – 18.07 per cent (290,000 BPD), Ondo – 3.74 per cent (60,000 BPD), Lagos – 2.64 per cent (40,000 BPD); Edo – 2.06 per cent (33,000 BPD) and Imo –1.06 per cent (17,000 BPD).
A sum of N424.02 billion was shared among them in the year 2020 as part of 13% oil derivatives.
This is according to data obtained from the Federal Account Allocation Committee (FAAC) published regularly by the National Bureau of Statistics (NBS). Oil producing states that received funds in 2020 include Delta, Akwa-Ibom, Bayelsa, Rivers, Edo, Ondo, Imo, and Abia. Though Lagos State is also an oil-producing state, it, however, did not receive any fund in the year under review. Delta State ranks first with a total of N130.6 billion, which represents about 31 per cent of the total 13 per cent derivation shared in 2020. Akwa Ibom closely followed having received a total of N94.8 billion.
This means the state received 22 per cent of the total disbursement during the period. Others on the list include Bayelsa (N80.9 billion), Rivers (N78.4 billion), Edo (N13.6 billion), Ondo (N11.3 billion), Imo (N9.1 billion), and Abia State (N5.3 billion).
However, despite the billions received as 13 per cent derivation funds, investigation revealed that the states are still heavily in debt to the tune of N1.6 trillion, according to recent debt chart released by the Debt Management Office for the first quarter 2021 ending March.
According to DMO debt stock for the sub-national level, Akwa-Ibom a high ranking oil producing state has debt stock of N232.204 billion, Delta state N213.782 billion Rivers N266.936 billion, Bayelsa N142.936 billion, Ondo N72.598 billion Lagos N507.377 billion, Edo N81.750 billion and Imo N149.888 billion. Latest debt stock update by DMO put Nigeria’s total debt stock comprising the Federal Government , 36 states and the Federal Capital Territory ( FCT) at N33.107 trillion or $87.239 billion as at March 31, 2021. Making up the debt stock are Promissory Notes in the sum of N940.220 billion issued to settle inherited arrears of the FGN to state governments, oil marketing companies, exporters and local.contractors.
Compared to the last year’s December 31, 2020 public debt stock of N32.916 trillion, the increase in the debt stock was marginal at 0.58 per cent. Analysis of the public debt stock shows increase in the domestic debt stock, which grew by 2.11 per cent from N20.21 trillion in December 2020 to N20.637 trillion as at March 31, 2021.
The Federal Government’s share of the domestic debt includes FGN Bonds, Sukuk and Green Bonds. They were used to finance infrastructure and other capital projects as well as the N940.220 billion Promissory Notes. For the external debt stock component, it recorded a decline from $33.348 billion as at December 31, 2020 to $32.86 billion due to the redemption by Nigeria of the $500 million Eurobond in January 2021.
SOURCE: newtelegraphng.com