Oil Money: What we’ve received so far as refund from Buhari’s administration - Edo

The Edo State Government has said it has received only N2.1 billion from the N28 billion that accrued to the state as 13 per cent oil derivation fund for oil producing states.

Edo State Commissioner for Budget and Finance, Joseph Eboigbe, disclosed this while briefing reporters after the weekly Executive Council meeting chaired by Governor Godwin Obaseki, at the Government House in Benin City.

The disclosure from the Edo State Government is coming days after Governor Nyesom Wike of Rivers State revealed that oil producing states have received billions of naira from President Muhammadu Buhari’s administration as refunds for deduction on the 13 per cent oil derivation funds.

The Edo finance commissioner, Mr Eboigbe said N1 trillion was established for oil producing states and a distribution methodology was adopted by the Revenue Mobilisation Allocation and Fiscal Commission, adding that N28 billion accrued to Edo and would be paid in five years in 20 tranches.

He said, “The net amount will come to each state for over five years in 20 tranches. Each year, you will have quarterly remittances, which is four releases each year for over five years. Due to some court cases from some states, the releases started this year, October 2022.

“The Edo State Government got three tranches of N700 million per quarter, which amounts to N2.1 billion out of the N28 billion. It is verifiable.

“We are expecting 20 quarterly tranches in over five years, but so far, we have gotten just three out of the 20 and it’s verifiable. We have the records on how the money is being spent.”

Noting that the government disburses between N2 billion to N3 billion monthly for capital expenditure in the state, Mr Eboigbe said, “It’s only in Governor Obaseki’s administration that you will find capital expenditure always bigger than recurrent expenditure. Development occurs when capital expenditure is greater than recurrent expenditure. Last year, the state almost closed out at 90 per cent actualisation of capital expenditure of the budget.”

Describing the Obaseki-led administration as transparent and accountable, the commissioner added, “Governor Obaseki received an award for his transparency in the utilisation of resources. The World Bank studied all the states in Nigeria in the last four years and found the governor worthy of honour for his fiscal transparency, accountability and sustainability programmes. It was only Edo State that also got an award from the World Bank on expenditure efficiency.”

Also, Special Adviser to the Governor on Media Project, Crusoe Osagie, said comments on the 13 per cent oil derivation was targeted at creating unnecessary tension in the country amid the electioneering campaigns.

He noted, “Our budget on an annual basis is about N250 billion to N300 billion. What percentage of N250 billion is N2.1 billion? It’s even less than one per cent. It’s not a fantastic amount that has come into the state, as some politicians are trying to play politics with it. The Edo State Government is transparent with its resources.”