The nine oil-producing states in Nigeria shared N450.60 billion from the federation account through the 13 percent derivation formula in 2021.
Data from the National Bureau of Statistics (NBS) showed that Delta, Akwa-Ibom, Bayelsa, Rivers, Edo, Ondo, Imo, Lagos and Abia received the fund.
The 13 percent derivation fund comes from the federation revenue to oil-producing communities through the state governments as enshrined in section 162, sub-section 2 of the Nigerian constitution.
Analysis of the report by TheCable Index showed that Delta state received the highest with a total of N141.93 billion, representing 31 percent of the total revenue from the derivation account.
Delta is followed closely by Akwa Ibom, having received N91.16 billion, representing 20 percent of the total disbursem*nt during the period.
Other states include Bayelsa (N87.23 billion), Rivers (N83.12 billion), Edo (N17.12 billion), Ondo (N11.50 billion), Imo (N9.98 billion), Abia (N4.78 billion) and Lagos (N3.78 billion).
The 13 percent derivation fund is different from the three percent provided for host communities in the PIA from the oil company’s operating expenses (OPEX).
DESPITE DERIVATION FUNDS, LAGOS, RIVERS, AKWA IBOM AMONG MOST INDEBTED STATES
Despite 13 percent derivation, oil-producing states are still battling high domestic debt and suffering from massive infrastructure decay, among many others.
Lagos, Rivers and Akwa Ibom are peculiar examples.
According to the Debt Management Office (DMO), Lagos leads with a total debt of N532.12b billion, followed by Akwa Ibom and Rivers states with N234.85 billion and 226.35 billion, respectively, at the end of Q3 2021.
Delta has a domestic debt of N207.16 billion, followed by Imo, Bayelsa, Abia, Edo and Ondo states with N151.31 billion, N145.80 billion, N89.30 billion, N80.22 billion and N65.42 billion, respectively.
Apart from Lagos ($1.41 billion) and Edo ($280.29 million), no other oil-producing states fell into the top ten list of indebted states (external debts).
FAQs
The 13 percent derivation fund comes from the federation revenue to oil-producing communities through the state governments as enshrined in section 162, sub-section 2 of the Nigerian constitution.
Which states benefit from 13 derivatives in Nigeria? ›
Nigeria's revenue-sharing formula requires that the nine oil-producing states, including Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Imo, Edo, Ondo, and Rivers, receive 13 per cent as oil revenue derivative.
What are the 9 oil producing state in Nigeria? ›
The nine oil producing states shared N544. 9 billion from the federation account, through the 13 percent derivation formula, in the first half of 2023. National Bureau of Statistics (NBS) data showed that Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo, and Rivers were states that received the funds.
How many states produce oil? ›
Crude oil is produced in 32 U.S. states and in U.S. coastal waters.
What is 9 out of 13 percent? ›
Answer and Explanation:
9/13 expressed as a percentage is calculated the following way: 9 13 × 100 = 69.230769230 . . . Rounding off the answer we get about 69% as an answer.
What is 13 divided by 9 as a percent? ›
Solution: 13/9 as a percent is 144.444%
For instance, in the fraction 13/9, we could say that there are 13 pieces out of a possible 9 pieces. “Percent” means “per hundred”, so for percentages we want to know how many pieces there are if there are 100 pieces possible.
Who benefits from derivatives? ›
Index derivatives can be used by investors to gain exposure to a particular market, sector, or country. They can also be used to diversify or hedge a portfolio, allowing investors to manage their risk exposure. Furthermore, index derivatives can be either exchange-traded or over-the-counter (OTC).
When did 13 derivation start in Nigeria? ›
162(2) of the 1999 constitution (as amended) of the Federal Republic of Nigeria provides that the principle of derivation shall be constantly reflected in any approved formula determined by the national assembly for revenue allocation from the federation account and such derivation shall not be less than thirteen ...
What is 13 percent derivation in Nigeria? ›
The 13 per cent derivation fund comes from the federation revenue to oil-producing communities through the state governments as enshrined in section 162, sub-section 2 of the Nigerian constitution. Analysis of the report showed that Delta state received the highest allocation totalling N296.
Which state is the richest in Nigeria? ›
Nigeria's Richest States by GDP Nominal 1. Lagos State ($101 billion) 2. Rivers State ($19.72 billion) 3. Akwa Ibom State ($19.25 billion) 4.
The Dominant Oil Producing States
| Rank | State | Share of Total Production |
|---|
| 1 | Texas | 43.0% |
| 2 | North Dakota | 10.4% |
| 3 | New Mexico | 9.2% |
| 4 | Oklahoma | 4.1% |
1 more rowAug 10, 2021
Texas is by far the largest oil-producing state in the United States. In 2022, Texas produced a total of 1.8 billion barrels. In a distant second place is New Mexico, which produced 574.3 million barrels in the same year.
Can the US supply its own oil? ›
You see, the U.S. does produce enough oil to meet its own needs, but it is the wrong type of oil. Crude is graded according to two main metrics, weight and sweetness. The weight of oil defines how easy it is to refine, or break down into its usable component parts, such as gasoline, jet fuel and diesel.
Which 2 countries use the most oil? ›
Oil Consumption by Country
| # | Country | World Share |
|---|
| 1 | United States | 20.3 % |
| 2 | China | 13.2 % |
| 3 | India | 4.6 % |
| 4 | Japan | 4.1 % |
94 more rowsThanks to the shale oil boom, the US is now sitting on more oil reserves than Russia, which estimates as having 256 billion barrels of untapped oil. The next-richest countries in terms of oil after that are: Saud Arabia (212 billion), Canada (167 billion), Iran (143 billion) and Brazil (120 billion).
How do you derive percentage? ›
If we have to calculate percent of a number, divide the number by the whole and multiply by 100. Hence, the percentage means, a part per hundred. The word per cent means per 100. It is represented by the symbol “%”.
How do you find the percent derivation? ›
Percent Deviation Formula
To calculate a percent deviation, subtract the true value from the measured value, then divide by the true value, then multiply by 100.
How do you calculate 13 percent? ›
Explanation:
- To express any decimal as percentage, multiply the number by 100% .
- Hence, to express 0.13 as percentage, multiply it by 100% .
- 0.13=13100=13×100 100 %=13%
- Or 0.13=13100=13%
To find the percent change, you first subtract the earlier index value from the later one, then divide that difference by the earlier index value, and finally multiply the result by 100.
