Inside Allegation Of How S/South Govs Mismanaged N950bn Derivation Fund!

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Governors from the South-South region of the country are currently enmeshed in fresh trouble as the Directorate of Parliamentarians of the All Progressives Congress (APC) in the South-South geo-political zone, has allegedly fingered them in the misappropriation of the N950 billion that accrued to their states as proceeds of excess crude oil sales and 13% derivation.

Senator Ita Enang, a governorship aspirant of the APC in Akwa Ibom and Director of the party’s Parliamentarians in the South-South made this accusation at a news conference in Abuja.

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He alleged that the governors of the Niger Dleta state shortchanged their respective states through low rate discounting at various banks.

The New Diplomat reports that administration of President Muhammadu Buhari issued arrears of the said 13% derivation funds to oil-bearing states between 2004 and 2019 as well as derivation arrears from deductions made by NNPC from 1999 to December 2021.

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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.

Since the revelation, controversies have continued to emerged as the governors of the oil bearing states have been called out to account for how they spent the monies.

In the latest call, Enang tasked the Houses of Assembly of the affected states, to thoroughly investigate the action of their governors and commence impeachment proceedings against those found culpable.

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According to him, Akwa Ibom State had collected a total sum of N133.5 billion, it had an outstanding of N277 billion to collect but had already discounted the fund at low rate in banks for ridiculous loans.

He also said the Rivers State Government has collected N116 billion from the arrears of oil monies and N229 billion as outstanding while Delta State State, collected a total of N125 billion but had an outstanding balance of N253 billion.

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Similarly, Bayelsa State has collected N104 billion and has an outstanding balance of N209 billion, which is also being discounted by the State Governor for ridiculous loans.

He added that the Edo State government has collected the sum of N13 billion so far and has N37 billion outstanding payment which is also being discounted through loans in some banks.

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He however, said that Cross River State Government was not in the fleecing game due to insignificant accruals the State had been getting.

In his words: “Total money collected by Cross River State from oil money arrears is N1.4 billion while outstanding payment is N1.2 billion. Exposures being made here today on how the Governors of the South South States, have been squandering oil earnings, are to get the people of the respective states informed ahead of the 2023 general election that they should reject their party , the Peoples Democratic Party ( PDP) in the 2023 general election.

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“We want impeachment proceedings to be carried out against them by their respective State Houses of Assembly if their members truly loyal to the people. We however thank the Governors for their kleptomania which will surely make candidates of their party to lose elections next year.”

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