Okowa Speaks On 13% Derivation, Makes Fresh Revelation

Okowa Speaks On 13% Derivation, Makes Fresh Revelation

According to the Delta State Government, it has accessed N44.7 billion of the N240 billion that it is owed from the Federal Government’s 13 percent derivation budget.

While briefing reporters at Government House in Asaba, the state commissioner for finance, Fidelis Tilije, revealed this.

According to the News Agency of Nigeria, Oils Ifeajika, a spokesman for Governor Ifeanyi Okowa, and Henry Sakpara, the Commissioner for Special Duties, attended the briefing.

Mr Tilije stated that Mr Okowa’s administration was transparent and open to the public in terms of its finances, programs, and projects.

He added that the N240 billion was Delta’s share of the payment approved by President Muhammadu Buhari for the nine oil-producing states from 2004 to date.

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Mr Tilije stated that the state government had initially applied for N150 billion in bridging finance, which it later reduced to N100 billion from the expected Refund of N240 billion to pay for legacy projects in the state.

He stated that the benefiting states had agreed that the Federal Government would defray the payment over a five-year period, and that the Delta Government had received N14.7 billion, accounting for three-quarters of the N240 billion.

Mr Tilije also stated that the state government has accessed N30 billion from the N100 billion bridging finance facility.

“So, in a way, the state has accessed and utilised the N14.7 billion paid by the Federal Government and the N30 billion from the bridging finance for payment for ongoing  projects,” he said.

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Mr Tilije stated that the legacy projects included Kwale Industrial Park, Asaba Leisure and Film Village, Koko interchange and flyover, Ughelli-Asaba dual carriageway, and three new state universities, all of which were nearing completion.

He added that the state government had also appropriated five billion naira to address the issue of pension payment for both state civil service and Local Government workers.

He noted that Delta had many cities large enough to be capitals, and that the state government had adequately addressed their needs, in contrast to other states with only one capital city.

“It is true that the funds that we are referring to have actually been approved for payment by the Federal Government since 2004.

“The payment came about because the current commissioners of finance from the nine benefiting states looked into the books of the Nigerian National Petroleum Company (NNPC) and found out the indebtedness that the company failed to deduct to the credit of the oil producing states.

“These fund has to do with the subsidy that the Federal Government has been paying overtime and also with the investment in other oil frontiers in the nation(priority projects).

When the NNPC book was cross-checked, it was discovered that 13 percent derivation was not deducted from all oil subsidies and priority projects paid by NNPC, according to Mr Tilije.

“As at the time we figure it out in September 2021, we were able to convince the plenary of Federation Accounts Allocation Committee (FAAC) and also to National Executive Council (NEC) that the monies were credible and must be paid.

“The total amount owed Delta with respect to the deductions was N240 billion. The Federal Government agreed to pay the money in five years quarterly and as we speak, Delta has received N4.9 billion in three quarters which amount to about N14.7 billion,” he said.

He stated that, unlike other oil-producing states that had discounted their funds in full, the Delta government had decided not to discount and access the entire N240 billion, but rather to save some money for the next administration.

Mr Tilije stated that the state government was committed to laying a solid foundation for the next administration, adding that the coming administration would have access to up to N12 billion quarterly as a result of the N240 billion secured.

Mr Ifeajika, for his part, stated that Mr Okowa’s administration had been transparent, adding that the opposition party had been economical with the truth in claiming that the government had nothing to offer.

He stated that the state government was committed to completing all legacy projects by the end of the year.