In the first half of 2024, nine oil-producing states received N341.59 billion from the federation account through a 13 percent derivation formula.

The Federation Account Allocation Committee (FAAC) uses the 13 percent derivation formula to share revenue among the oil producing states.

Section 162(2) of the constitution is where this formula exists and it mandates that thirteen percent of money collected from natural resources i.e., oil and gas should be equally shared by all the states where such resources are exploited

National Bureau of Statistics (NBS) data showed that Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo and Rivers got the funds during this six-month period.

Delta got the highest amount at N113.78 billion which represents about one third of what was disbursed in total.

Delta allocation was followed by Akwa Ibom (N70.01 billion) accounting for a fifth share of all cash distributed

Others are Bayelsa (N64.04bn), Rivers (N58.78bn), Edo (N11.90bn), Ondo (N10.05bn), Imo (N5.72bn), Anambra (N4.13bn) and Abia(N3.19bn).

DESPITE DERIVATION FUND THE OIL STATES STRUGGLE TO SETTLE DEBTS AND REVERSE INFRASTRUCTURE DETERIORATION

In 2022 Delta and Akwa Ibom were two out of nine oil-producing states

Culled from NigeriaNeye

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