South-east zone receives lowest allocation from 13% derivation fund — NEITI report

A report by the Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that the South-east zone of Nigeria received the lowest allocation from the 13 percent derivation revenue payment.

The 13 percent derivation fund is a fund distributed to oil-producing communities through the state governments as enshrined in section 162, sub-section 2 of the Nigerian constitution.

According to the report released by NEITI yesterday, the South-South (SS) Zone allocation of N1.37 trillion, or 29.53 percent of the total revenue, was the highest, as a result of the 13 percent derivation revenue payment.

The allocations for the other zones, the report said, were: North-West N830.078 billion, or 17.85 percent; South-West, N677.69 billion or 14.57 percent; North-Central, N669.226 billion, or 14.39 percent, and North-East N591.199 billion, or 12.71 percent, while South-East had the lowest allocation of N509.59 billion, or 10.96 percent of the total allocation.

In terms of disbursements to the three tiers of government, the report showed that while a total of about N5.42 trillion was distributed to the Federal, State and Local Governments for the period, a total of N859.66 billion was deducted as 13 percent derivation and shared among the nine oil producing states after the deduction of excess petroleum profit tax (PPT) and Royalty.

The nine oil-producing states include Abia, Akwa-Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo, and Rivers.

A breakdown of the disbursements showed that while the Federal Government received about N2.80 trillion, the 36 state governments got N1.45 trillion, and the 774 Local Government Areas received a total of N1.17 trillion.

The report noted 2021 as the year with the highest revenue distribution across board, with 2 percent increase between 2020 and 2021.

On a state-by-state basis, the report showed that the gross statutory revenue and VAT to the states from 2020 and 2021 was about N4.65 trillion, with Delta, Rivers, Akwa Ibom, and Lagos receiving the highest allocations for the period, while Gombe, Ogun, Ekiti, Plateau, Cross River, and Osun were states with the lowest allocations.

Further breakdown of the details of the zonal allocations showed that in the South-South, Delta State received the highest allocation of N372.07 billion, followed by Rivers (N298.68 Billion), and Akwa Ibom (N281.78 Billion), while Cross River got the least allocation (N66.83 billion) during the year under review.

In the North-West Zone, Kano State got the highest allocation of N163.41 billion, followed by Kaduna (N130.02 billion), and Katsina State (N123.09 billion), while Zamfara got the least allocation of N84.81billion for the period.

Lagos State received the highest allocation of N243.58 billion in the South-West zone for the period under review, followed by Oyo (N117.93 billion), and Ondo (N95.98 Billion), while Osun received the least allocation of N64.19 billion.

The Federal Capital Territory (FCT) got about N112.77 billion as the highest allocation in North-Central Zone, with Borno receiving N122.49 billion, as the highest allocation in the North-East Zone, while Imo State got the highest allocation of N113.45 billion in the South-East zone for the period under review.

In terms of additional revenue from other sources such as exchange gain, excess crude, other non-mineral, solid mineral, and NNPC refunds, the report said a total of N972.705 billion was distributed among the three tiers of government.

A breakdown of the details revealed that while a total of N234.32 billion was shared as Exchange gain, the Federal Government collected N109.89billion; States N55.73 billion, and N42.97billion, while N25.72 billion was shared as 13 percent derivation revenue for the period.

Out of a total of N81.097 billion revenue shared as Domestic Excess Naira, the Federal Government got N37.168 billion; States N18.85 billion, and Local Governments N14.53 billion, while N10.54 billion was shared as 13 percent derivation revenue for the period.

From a total excess oil revenue of about N105.257 billion, the report showed that the Federal Government received N55.36 billion; States N28.079 billion, and Local Governments N21.648 billion, while N167.94 million was shared as 13 percent derivation revenue for the period.

The Federal Government received about N126.67 billion out of the total N240.45 billion shared as non-oil Excess Revenue for the period, while the States got N64.25 billion, and Local Governments N49.53 billion.

Out of a total of N16.83 billion realised as Solid Mineral revenue, the Federal Government received N7.712 billion; State Governments N3.911 billion, N3.016 billion went to the Local Governments, while N2.1 billion was shared as 13 percent Derivation revenue.

In terms of FOREX Equalization revenue shared, the Federal Government got N21.083 billion out of a total of N46.00 billion, with the State Governments getting N10.69 billion, Local Governments N8,244 billion, while N5.98 billion was shared as 13 percent Derivation revenue.

From a total of N244 billion shared from FGN Intervention revenue, the report said the Federal Government received N118.68 billion, State Governments N60.19 billion, Local Governments N46.41 billion, while N18.72 billion was shared as 13 percent Derivation revenue

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