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Oil-Producing States owe N1.3trn debt

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According to the official data released by the Debts Management Office (DMO), the oil-producing states are the most indebted across the country despite the huge derivation revenue accruing to them.

The states are Akwa Ibom, Rivers, Bayelsa, Cross River, Delta, Edo, Imo, Abia, and Ondo. Rivers leads the pack with N225.59 billion, followed by Delta N223.44 billion, Akwa Ibom N199.77 billion, Cross River N167.25 billion, Bayelsa N133 billion and Edo N86.37 billion. The others are Imo with N97.85 billion, Abia N62.85 billion and Ondo N56.96 billion.

From the Federation Account Allocation Committee (FAAC) report recently submitted, it was revealed that the states receive huge derivation revenue. The 9 oil states have collectively received N44.68 trillion from FAAC as 13% mineral derivation revenue from June 1999 to December 2018. This is excluding the monthly statutory allocations and the revenue internally generated by the states.

Broken down, Akwa Ibom got N1.47 trillion, Bayelsa N1.09 trillion, Cross River N278.12 billion, Delta N39.9 trillion, Edo N84.54 billion and Rivers N1.44 trillion from 1999 – 2018. Others are Abia N69.19 billion, Imo N69.59 billion and Ondo N258.02 billion.

Speaking on the subject, Senator Shehu Sani said the states go for loans they don’t need. “The oil states go for loans because the creditors are willing to give them because of their apparent liquidity,” the senator said.

The Senator revealed that Edo and Cross River have taken so many loans that they are now ineligible for further loans.

Source The Breaking Time
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