– Projected to receive N100bn in 2023
Mkpoikana Udoma
Port Harcourt — A total sum of N160billion was paid to Akwa Ibom State Government in the year 2021, as her share of the 13percent crude oil derivation arrears released to oil producing states by President Muhammadu Buhari, the state government has confirmed.
Recall that Akwa Ibom State Government recently denied misappropriating its share of the 13percent derivation arrears, after citizens demanded for accountability, following the disclosure by Rivers State Governor Nyesom Wike that President Buhari released 13percent oil derivation deductions arrears from 1999 till date to oil producing states.
Following more agitations from concerned citizens, Akwa Ibom State Commissioner for Finance, Dr Nsikan Linus Nkan, on Monday disclosed the amount of funds it has received as 13percent derivation arrears, saying that the sum of N41.4billion was projected to be paid to the state in 2022 but only N26billion has so far been received.
Nkan, maintained that the Governor Udom Emmanuel-led administration has been judicious in the application of 13 percent crude oil derivation arrears and other incomes accrued to the state.
“It has become pertinent to respond to issues relating to the refund of the 13 percent derivation arrears to oil producing states, of which Akwa Ibom is one.
“The agitation for the refund of the arrears which were deducted from the earnings due to the oil-bearing states was undertaken by the affected Governors, directly and through their officers at the Federation Accounts Allocation Committee FAAC, which agreed with the very detailed submission and calculated the sums accruing to the states.
“However, due to the large amount involved and the inability of the Federal Government to pay all at once, it was agreed that the payments be made in tranches quarterly, over a period of five years.
“In 2021, the sum of N160,000,000,000 was remitted to the state account. In 2022, the
projected income from this source was N41,434,000,000, but as at Q3, the sum of N26,000,000,000 has been received.
“In line with proper financial records keeping and public finance transparency, the refund
was reflected in the 2021 budget as Other Exceptional income: 13% derivation revenue
arrears, which was revised to the tune of N193,000,000,000; in 2022 the revised provision was N41,434,000,000; in the 2023 budget, the estimate for this line item is N100,000,000,000.”
The Commissioner further said that the was no cause for alarm on the state of finances of the state, because the Governor was conscious of the judgement of history and posterity and was doing everything to earn a copious mention on its golden pages.
“With the implementation of the International Public Sector Accounting system, it is impossible for any unaccounted expenditure to occur. It is also worthy to point out that the state’s budgets and annual reports must first be reviewed by the World Bank, and it is practically impossible that financial infractions can skip their attention.”
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