Ike Amos
Dublin, Ireland — Despite ongoing controversy over the utilisation of previous allocations to subnational governments over the years, oil-producing states in the country received N522 billion from the Federation Account in 2022 through the 13% Derivation Fund, according to latest data released by the Central Bank of Nigeria, CBN.
In its Economic Report for 2022, the CBN stated that the amount paid to the states in 2022, was 29.43 per cent lower compared with the N739.677 billion paid to the states in 2021.
The oil-producing states currently benefiting from the 13% Derivation fund are Delta, Akwa-Ibom, Bayelsa, Rivers, Edo, Ondo, Imo, Lagos and Abia
In a breakdown of the amount distributed to the states, the CBN report revealed that in January, February, March, April, May and June 2022, the subnational governments received N58.74 billion, N56.39 billion, N23.75 billion, N53.356 billion, N48.485 billion and N33.454 billion, respectively, from the 13% Derivation funds.
It added that N52.799 billion, N55.515 billion, N26.3 billion, N59.991 billion, N25.591 billion and N25.591 billion were shared, respectively, in July, August, September, October, November and December 2022.
In comparison, N54.516 billion, N52.846 billion, N60.125 billion, N64.157 billion, N59.997 billion, N48.716 billion, N75.345 billion, N75.327 billion, N52.757 billion, N78.029 billion, N45.15 billion and N72.712 billion was shared among the states from the fund in in January, February, March, April, May, June, July, August, September, October, November and December 2021, respectively.
The CBN had stated that Nigeria’s oil and gas revenue stood at N4.641 trillion in 2022, appreciating by 6.5 per cent, compared with oil earnings of N4.358 trillion recorded in 2021.
In its analysis of federally collected revenue for 2022, the financial sector regulator disclosed that oil earnings accounted for 40.56 per cent of the country’s gross revenue of N11.44 trillion in 2022, while non-oil revenue accounted for 59.44 per cent of total revenue.
Giving a breakdown of oil earnings, the bank stated that earnings from royalties stood at N2.273 trillion, petroleum profit tax/gas tax fetched the country N1.942 trillion; earnings from crude oil sales stood at N334.964 billion, while the federation recorded zero revenue from gas sales.
The CBN added that the federation earned N6.28 billion from rent; and N13.56 billion from pipeline fees and other miscellaneous revenue.
The central bank had also stated that banks’ credit to the Nigeria oil and gas industry appreciated by 30.15 per cent from N1.466 trillion as at the end of 2021, to N1.908 trillion at the end of 2022, with the sector accounting for 6.48 per cent of commercial banks’ total credit to the private sector valued at N29.446 trillion.
Also, the apex bank disclosed that banks’ credit to the power and energy sector in 2022 stood at N297.408 billion, dropping by 12.26 per cent compared with N338.945 billion recorded at the end of 2021.
According to the CBN data, credit to the power sector in 2022 accounted for 1.01 per cent of banks’ total credit to the private sector.
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