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13% Derivation Refund: Edo’s Share is N28bn, We have Received N2.1bn so far – Finance Commissioner

The Commissioner for Finance, Budget, Economic Planning and Development, in Edo State, Mr. Joseph Eboigbe, has said that the State’s share of the one trillion naira 13 per cent derivation refund that is due the oil producing States in Nigeria is N28 billion, and has received N2.1billion so far.

Eboigbe made this known on Wednesday in Benin City at a press conference which was also attended by the commissioner for Communication and Orientation, Chris Osa Nehikhare and the Special Adviser to the Governor on Media Project, Crusoe Osagie.

According to Eboigbe, “Edo State’s share of that figure was N28billion naira. A small figure out of the N1 trillion that was what got to us.

“So we have received three quarterly releases so far, N700 million, N700 Million, N700 million, totaling N2.1billion. That is what has come into the State’s coffers and it is verifiable in the bank, and the office of the Accountant General has the records.

“Our share was N28 billion, the net is to be distributed over five years, quarterly, that will be 20 quarterly installmental releases, three have come so far, each has been N700 million, N700 million, N700 million and how that money was spent again, we have the records for anybody that wishes to see.”

Providing a context for the derivation refund and how the money was established, the Commissioner explained: “The commissioners of finance in Nigeria under the aegis of the Federation Account Allocation Committee (FAAC), especially those from the oil producing States, we spotted the fact that there was an anomaly in the way federal government was spending money from crude oil and gas sales and not taking out derivation. So the work was done, and a total of about one trillion naira was established to the oil producing states.

“It went through the whole process, the Economic Council approved, and the President approved and a distribution methodology was adopted from the Revenue Mobilization Allocation and Fiscal Commission (RMFAC) and they now established what was going to each State. Edo State’s share was N28 billion. What was also approved was the way and manner this money was to be distributed to the States.

“The net amount, again there are usually sundry deductions, so the net amount will come to each state over five years, each year you will have quarterly remittances which means four releases each year over five years. This disbursement was to start this year, but some States went to court with restraining order. Releases now started in October, just last month.

“What the Federal government did do was to keep the share of each State. So by the time they started releasing, Edo State got 2 tranches in arrears and what we got was 700 million per quarter, this is verifiable in our bank account just behind here at sterling bank.”

The Commissioner for Communication and Orientation, Mr. Chris Osa Nehikhare, and the Special Adviser to the Governor on Media Project, Mr. Crusoe Osagie, emphasized that the Governor Godwin Obaseki-led administration will continue to apply all resources due to the State in the most frugal manner and in the best interest of Edo people.

“The state has consistently used our resources prudently. We are not using our money for fancy projects but for projects that have direct impact on the lives on the majority of our people,” Nehikhare stressed.

 

 

Source: Edo State Government