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Civic Group, SERAP Issues Freedom Of Information Request To Nine States To Explain How N1.7trillion Derivation Was Spent

serap
December 2, 2022

This may be connected with reports that the nine oil-producing states increased its debts from N2.04tn in December 2015 to N3.35tn as of June 2022, according to sub-national debt reports of the Debt Management Office.

The Socio-Economic Rights and Accountability Project (SERAP) has said that it is issuing Freedom of Information request to nine oil producing states to account for N1.7trn 13% derivation funds received from the Muhammadu Buhari administration.

This may be connected with reports that the nine oil-producing states increased its debts from N2.04tn in December 2015 to N3.35tn as of June 2022, according to sub-national debt reports of the Debt Management Office.

According to the statistics, a total of N1.31tn was borrowed within a period of about seven years by the states.

The nine states are; Rivers, Akwa Ibom, Delta, Edo, Abia, Ondo, Imo, Bayelsa and Lagos.

The Minister of Finance, Budget, and National budget, Zainab Ahmed, on Thursday, at the sixth edition of the PMB Administration Scorecard disclosed that the Federal Government had disbursed a total of N1.98tn as a share of the 13 per cent derivation fund to oil-producing states.

According to her the amount was paid in seven years despite some of the funds preceding the current administration.

She said, “One of the key functions of the Ministry of Finance Budget and National Planning is in support of states. The President understands very clearly that this economy wouldn’t have been growing consecutively or wouldn’t have been able to pull ourselves out of recession twice.

“We wouldn’t have been able to grow consistently without enabling the states to grow because it is a federation.

“Mr. President has been very uniquely generous in his support to states. I can say no president has provided the level of support provided to the states of the Federation.

“He understands that the federating units need to work together as one to achieve the targets that he has set for the country. So, everybody goes to support sub-national governments.

“In seven years, we have disbursed N1.98 trillion in funds to oil-producing states.”

Governor Nyesom Wike, of Rivers State had alleged that the oil-producing states had refused to disclose their own shares of 13 per cent derivation fund paid by the Federal Government from 1999 to all the Niger Delta States.

The comment has generated disquiet.

SERAP in statement published on its twitter handle, said "We're issuing a Freedom of Information request to hold to account nine 2022 [of the N1.7trn 13% derivation funds] from the Buhari administration.

"The states are: Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo, Rivers."