The oil-producing states are the most indebted across the country despite the huge derivation revenue accruing to them, Daily Trust investigations have shown.
The oil states have a total domestic debt stock of N1.25 trillion as at March 2019, according to official data released by the Debts Management Office (DMO).
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This is coming at a time figures from the Federal Ministry of Finance revealed that the nine oil states have collectively received N44.68 trillion from the Federation Account Allocation Committee (FAAC) as 13 percent mineral derivation revenue from June 1999 to December 2018.
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These figures don’t include the monthly statutory allocations and the revenue internally generated by the states.
Based on the provisions of the Constitution, states are entitled to 13 percent 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.
Six of the states – Akwa Ibom, Rivers, Bayelsa, Cross River, Delta and Edo– belong to the oil rich Niger Delta or South South region of the country.
The others are Imo and Abia states from the South East and Ondo in the South West.
READ MORE https://www.dailytrust.com.ng/oil-states-stuck-in-n1-3trn-debt-trap.html?
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