Index to Nigerian Newspapers

13% Derivation: Oil producing states' earnings up by 3.41% to N653.70bn

Nigeria's oil producing states got a total of N653.70 billion from the Federation account as 13 percent derivation revenue in 2023, findings by New Telegrapgh has shown. An analysis of Federal Account Allocation Committee (FAAC) communiques, as well as FAAC reports published by the National Bureau of Statistics (NBS), indicate that the amount is N21.53 billion or 3.41 percent higher than the states recieved in 2022. The country's constitution stipulates payment of 13 percent of oil revenue from the Federation Account to oil producing States as derivation Fund that would be used for the exclusive benefit of their oil/gas producing communities which are usually negatively impacted by mineral exploration and production activities. Further analysis of FAAC communiques indicates that the highest amount recieved by oil producing states from the Federation account last year as 13 percent derivation revenue N84.97 billion in November while the lowest amount of N22.86 billion was received in May.

Chukwunyem Tony | Revenue allocation—Nigeria—Oil-producing states | New Telegraph | Monday, February 12, 2024