Delta State has received the highest allocation of N133.78 billion from the federation account (FAAC) from the 13% derivation formula in the first half of 2024, according to data from the National Bureau of Statistics (NBS).
The oil rich state led with N133.78 billion, representing 33% of total disbursement, among the nine oil-producing states which shared a total of N341.59 billion.
The 13% derivation formula is a revenue-sharing mechanism used by the federation account allocation committee (FAAC) to distribute a portion of the country’s revenue to the oil-producing states.
Section 162 (2) of the 1999 Constitution mandates that 13% of the revenue generated from natural resources, such as oil and gas, be paid directly to the states where these resources are extracted.
Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo, and Rivers states were recipients of the funds in the period, according to NBS.
Akwa Ibom in a distant second position got N70.01 billion or 20 percent of the total disbursement.
Other states include Bayelsa (N64.04 billion), Rivers (N58.78 billion), Edo (N11.90 billion), Ondo (N10.05 billion), Imo (N5.72 billion), Anambra (N4.13 billion) and Abia (N3.19 billion).
In 2022, Delta and Akwa Ibom were the oil-producing states that received the highest amounts from the federation account, with Delta receiving N296.63billion and Akwa Ibom receiving N222.52billion.
In the first half of 2023, the nine oil-producing states shared N544.9 billion from the federation account, with Delta receiving the largest allocation of N180.1 billion, followed by Akwa Ibom with N130.8 billion.
According to the Debt Management Office (DMO), as of first quarter 2024, Edo had the highest debt stock of N490.67 billion (domestic and foreign obligations) compared to other oil-producing states.
Delta followed with N413.75 billion debt while Rivers recorded N340.25 billion.
The debt figures for other states are: Imo (N265.98 billion), Abia (N232.17 billion), Akwa Ibom (N199.62 billion), Bayelsa (N182.17 billion), Anambra (N177.08 billion), and Ondo (N123.09 billion).
