13% derivation: Wike’s disclosure unsettles Southsouth governors

This is the question on the lips of stakeholder.

It followed the revelation of Governor Nyesom Wike that President Muhammadu Buhari approved and paid the arrears to Rivers, Bayelsa, Delta, Edo and Akwa Ibom states.

Wike spoke on the arrears last Friday during the inauguration of the N17billion Port Harcourt Campus of the Nigerian Law School.

The governor said President Buhari’s gesture was the major source of revenue for his projects, including the flyovers, the law school and the cancer centre.

He said: “Monies that were not paid to the Niger Delta states since 1999 mainly 13 per cent deductions, the President approved and paid all of us in Niger Delta states.”.

Wike repeated his comments at two other events afterwards.

Stakeholders have started asking questions of their governors on how they spent or are spending their shares of the money.

Our correspondents also reached out to some state officials on the issue.


Delta Governor Ifeanyi Okowa said the state had drawn only N30billion from its accrued share of N270billion from the 13 per cent derivation arrears.

Okowa said his administration earlier disclosed to Deltans the state’s share of N270billion.

He said his administration opted to access its share through a bridge finance loan of N150billion from a bank.

Okowa, who spoke through his Chief Press Secretary, Olisa Ifeajika, said the N150billion bridge finance loan was a discounting of receivables from the Federal Government for petroleum subsidy payments made without recourse to the 13 per cent derivation due to oil-producing states from 2010 to date.

He said the funds totalling N270.6billion ought to have been received long ago but because the Federal Government could not pay it in bulk, the oil-producing states agreed for some part of it to be paid within three years and the other within five years.

He said: “Okowa told Deltans that the Federal Government owed Delta arrears of 13 per cent, which amounted to N270 billion. Okowa did not hide the fact that the Federal Government promised to pay the arrears.”

He said of the N150billion loan, only N30billion had been drawn by his administration.

Bayelsa stakeholders took to social media over the slow pace of development amidst huge resources.

A resident, Nimizuo Pereseigha, said: “So, the big question is, What happened to Bayelsa’s share of the money paid by the Federal Government?”

Commissioner for Finance, Maxwell Ibiba, said: “The state will address the issue tomorrow (today). Kindly contact the Commissioner for Information.”

Commissioner for Information, Orientation and Strategy, Ayibaina Duba, did not pick up calls or respond to messages sent to him.