13% Derivation Refunds: Okowa denies receipt of #240b accruals, #60b for federal roads rehabilitation

By Mainstreamnews On Nov 21, 2022

13% Derivation Refunds: Okowa denies receipt of #240b accruals, #60b for federal roads rehabilitation

Delta Government Monday debunked media reports credited to a governor of a South South state that it had collected 13% Derivation refunds amounting to #240 billion from the Federal Government without disclosing it to citizens.

Commissioner for Finance, Chief Fidelis Tilije, who made this known at a news conference in Asaba, said the Okowa administration remained committed to transparency and accountability in all its financial dealings on behalf of the people.

Addressing the issues of 13% derivation arrears payment to oil-producing states raised by Governor Nyesom Wike of Rivers at the weekend, Tilije said contrary to Wike’s revelations, the state government has only accessed only #14.7billion of the refunds in three quarterly tranches of #4.9 billion respectively.

Tilije also denied claims by former Edo State Governor, Adams Oshiomhole, that the state government received over N60 billion on refunds for federal roads projects executed by the state.

Tilije, who was flanked by Commissioner for Special Projects, Chief Henry Sakpra and the Chief Press Secretary to the Governor, Mr Olisa Ifeajika, said the total amount due to the State from the 13% derivation arrears is N240bn out of which the Federal Government agreed to pay in quarterly installment for a period of five years.

“With the agreed amounts settled, some states like Rivers approached commercial banks and discounted theirs in full and collected, but Senator (Dr) Ifeanyi Okowa said he would not want to leave the next administration with a huge debt burden.

“He resorted to discounting only #150 billion out of the #240 billion expected receivables but later pruned it down to #100 billion.

“So far, we have got #14.7 billion in three quarterly installments and we have also accessed #30 billion out of the #100 billion we applied for as bridging finance,” he explained.

The commissioner stated that contrary to the impression given by Wike that previous administrations in the country refused to pay the money to the oil-producing states, the discovery of the outstanding funds was made by current commissioners for finance in the Niger Delta states.

“The present Commissioners for Finance of the nine Niger Delta states looked into the books of the NNPC and discovered that 13 per cent derivation was not deducted from subsidy payments and investments in priority projects by the Corporation.

“We took the matter before the FAAC and National Economic Council and got them to approve the payment in arrears to the affected oil-producing states.

“It is important to state that this was only discovered under the Buhari administration, which he subsequently approved. It is not that previous PDP administrations refused to pay. It was never discovered then neither was it brought to their notice,” he said.