Nigeria's oil producing states received N448.67 billion as part of their 13% oil derivatives in 2021, an increase of 5.8% compared to N444 billion in the previous year.
This is based on data analyzed by Nairalytics, the research arm of Nairametrics, in the monthly FAAC report published by the National Bureau of Statistics (NBS).
The report shows that Delta State received the highest amount of N141.93 billion, accounting for 31.6% of the total amount shared during the reporting period. On the other hand, Lagos State had the lowest oil derivatives spending with only 0.8% of the total spending.
A cursory review of the history shows that despite the increase in 2021, the share for the year under review is still well below the N552.5 billion and N536.3 billion shared in 2018 and 2019, respectively.
- Delta State secured the largest share of N141.93 billion for the year under review, an increase of 8.7% from the N130.57 billion received in the previous year.
- Akwa Ibom was closely followed by N91.16 billion, representing 20.3% of total expenditure and a 3.9% decline from the N94.82 billion received in the previous year.
- Bayelsa State received a total of N87.23 billion, representing 19.4% of the total apportionment of the states. Bayelsa’s receipts for the period increased by 7.8% compared to the N80.95 billion received in 2020.
- Other states on the list include Rivers (N83.12 billion), Edo (N15.48 billion), Ondo (N11.5 billion), Imo (N9.14 billion), Abia (N4.78 billion), Lagos (N3.78 billion).
- It is noteworthy that Suco also received N548.05 million during the period under review, the first time the Gombe State region has profited from oil derivatives. Recall that Gombe State signed a memorandum of understanding with Rift Oil and Petroleum in September 2021 to explore for petroleum products in the state.
Anambra State joins the list
From March 2022, Anambra State will join the list of states that receive 13 percent of oil derivatives as part of its benefits as an oil producing state. This was announced by the state's governor, Willie Obiano, in a speech to the media after visiting the Oca International Convention Center and the Anambra Cargo and Passenger Airport.
- According to the governor, the Nigerian Midstream and Downstream Pricing and Regulatory Agency (NMDPRA) informed him that the agency confirmed that commercial quantities of crude oil have been removed from the state.
- The announcement comes 10 years after OOCL extracted crude oil in the state. Despite the abundance of crude oil and natural gas, the state still describes the oil and gas industry as a strategic reserve.
- However, as the state continues to explore commercial capacity, the state will begin receiving 13 percent of its oil derivatives in March of this year.
They are the country's largest debtors
Despite the blessings of oil and additional collections from the Federation Account Allocation Committee (FAAC), states still account for a significant portion of Nigeria's domestic debt.
Data from the Deep Dive Debt Management Office (DMO) shows that nine states accounted for 41% of the states' domestic debt as at September 2021, with Lagos State having the highest debt (N532.12 billion).
- Lagos, Nigeria’s commercial hub, accounts for 13% of the total domestic debt of N4.19 billion owed by 36 states, including the federal capital. The domestic debt position of Lagos State increased by N23.34 billion between January 2021 and September 2021. In terms of external debt, Lagos has a staggering total debt of $1.41 billion by the end of 2020.
- Similarly, Akwa Ibom’s domestic debt stock for the same period stood at N234.85 billion, representing 6% of total domestic debt, and received N4.04 billion in new domestic loans between January 2021 and September 2021.
- Meanwhile, six of the nine states on the list were among the top 10 states with the highest Internally Generated Revenue (IGR) in the first half of 2021. For the period January 2021 to June 2021, Lagos generated 267.23 billion naira internally, Rivers ( N57.32 billion), Delta (N41.93 billion), Oyo (N25.19 billion), Akwa Ibom (N18.09 billion), Ondo (17.91 billion) and Edo State (17.64 billion).