13% Derivation: Wike’s Hoax to Unsettle N’Delta Govs?

When Governor Nyesom Wike revealed that the money  he used to construct flyovers across Port Harcourt were part of the funds from the 13 per cent derivation arrears due to Niger Delta states and paid by the federal government, it was only logical for stakeholders to ask other Niger Delta states how they spent theirs. However, it seems that the governor’s outburst was part of an elaborate hoax to put his colleagues on edge, writes Sylvester Idowu

In his usual manner of throwing jabs, Rivers State Governor, Nyesom Wike again stirred the hornet’s nest penultimate Friday when he revealed that President Muhammadu Buhari approved and paid the arrears of 13 per cent derivation to Niger Delta states.

Wike made this known during the inauguration of the Port Harcourt Campus of the Nigerian Law School. He disclosed that the gesture was also the major source of revenue for the construction of the law school and cancer centre in the state.

 “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,” the governor said.

Immediately the Rivers State governor made the revelation, it instantly unsettled other South-south and South-east governors who have been benefiting from the 13 per cent derivation, with stakeholders asking how these governors spent or are spending their shares of the money they got from the federal government.

Barely two days after Wike’s revelation, though he later clarified it, social media was agog with the figures and amounts that each state allegedly got from the federal government. In one report that went viral, it was alleged that the outstanding 13 per cent derivation funds the federal government paid to were: Delta  – N142 billion; Akwa Ibom  – N91 billion; Bayelsa  – N87 billion; Rivers –  N83 billion; Edo – N17 billion; Ondo  – N12 billion; Imo  –  N10 billion; Abia  –  N5 billion; and Lagos  –  N4 billion.

The stakeholders from the region reasoned that if Rivers could construct over 10 flyovers with its share of the derivation funds, what did Delta and Akwa Ibom which earned N59 billion and N8 billion respectively more than Rivers do with their share of the funds?

This made the Edo State Chairman of the All Progressives Congress (APC), Col. David Imuse (rtd) to challenge Governor Godwin Obaseki to explain to the people of the state what he did with the derivation fund since his emergence as governor of the state.

But it did not take long to know that Governor Wike’s revelation was part of an elaborate hoax to unsettle his colleagues. Sources close to some Niger Delta state governments said no outstanding derivation funds from 1999 to 2021 were paid to them. They dismissed Wike’s claims, saying what the Buhari government only pledged to pay is the total amount due to each state from the 13 per cent derivation arrears from when he came to power in 2015, not 1999.

The sources said after many years, Niger Delta states noticed that for one reason or the other, they were under-paid the 13 per cent derivation funds due the states. When they discovered, they complained and approvals were given and the funds were discounted. They added that when the states sat down with agents of the federal government in 2021 to compute the amount, they discovered that it was huge and they agreed that the amount would be paid in a quarterly installment for five years and that it has only paid in three quarterly installments.

A source said Wike’s revelation was a deliberate and calculated plot to spite the Atiku-Okowa Presidential Campaign Organisation which has been running its campaign smoothly to his consternation.

“You know that before INEC gave political parties the go-ahead to commence campaign, it was alleged that Atiku was broke. Now Wike is surprised and envious that the campaign is moving ahead without his input. He is suspecting that Okowa pumped Delta State money into the campaign. This is the reason behind his revelation. It is mainly to spite them and cause confusion. Nothing more,” one of the sources said.

Responding last week, the Delta State Government debunked Wike’s claim that it collected refunds from the federal government without disclosing it to citizens, saying it had remained committed to transparency and accountability in all its financial dealings on behalf of the people.

The Commissioner for Finance, Chief Fidelis Tilije, said contrary to the revelation by Wike, Delta State only received N14.7 billion in three quarterly installments of N4.9 billion each.

Speaking at a news conference in Asaba, Tilije said the state government had remained committed to transparency and accountability in all its financial dealings on behalf of the people. He added that the total amount due to the state from the 13 per cent derivation arrears is N240 billion out of which the federal government agreed to pay in quarterly installments for five years.

The finance commissioner also denied claims by former Edo State Governor, Adams Oshiomhole, that the state government received over N60 billion in refunds for federal road projects executed by the state.

He said: “With the agreed amounts settled, some states like Rivers approached commercial banks and discounted theirs in full and collected, but Senator Ifeanyi Okowa said he would not want to leave the next administration with a huge debt burden. He resorted to discounting only N150 billion out of the N240 billion expected receivables but later pruned it down to N100 billion.

“So far, we have got N14.7 billion in three quarterly installments and we have also accessed N30 billion out of the N100 billion we applied for as bridging finance,” he explained.

The commissioner stated that contrary to the impression given by Wike that previous administrations in the country refused to pay the money to the oil-producing states, the discovery of the outstanding funds was made by current commissioners for finance in the Niger Delta states.

“The present Commissioners for Finance of the nine Niger Delta states looked into the books of the NNPC and discovered that 13 per cent derivation was not deducted from subsidy payments and investments in priority projects by the corporation.

“We took the matter before the FAAC and National Economic Council and got them to approve the payment in arrears to the affected oil-producing states.

“It is important to state that this was only discovered under the Buhari administration, which he subsequently approved. It is not that previous PDP administrations refused to pay. It was never discovered then neither was it brought to their notice,” he added.

On its part, the Edo State Government said it  received only N2.1 billion from the N28billion that accrued to the state as 13 percent oil derivation fund for oil producing states.

The state Commissioner for Budget and Finance, Mr. Joseph Eboigbe, noted that N1 trillion was established for oil producing states and a distribution methodology was adopted by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), adding that N28billion accrued to the state and will be paid in five years of 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.”

Also, a coalition of good governance under the umbrella of Akwa Ibom Professionals asserted that only about 15 per cent of the funds accruable to the states have been paid. The National Coordinator of the coalition, Mr. Ufot Umoren, averred that Governor Wike did not get his claims right. He said available records showed the federal government has not paid any 23 years arrears but only 10 months installments in line with the Order of Court to liquidate the arrears.

According to him “Governor Wike, perhaps inadvertently, misrepresented facts regarding the payment of 13 per cent derivation to oil-producing states. It is therefore important to state the facts the way they are and not subject such very sensitive issues to politics.

“Available records show the federal government has not paid any 23 years arrears but only 10 months installments in line with the Order of Court to liquidate the arrears in 60 equal monthly installments and disbursed to states quarterly, the first quarter being February to April 2022. What this means is that only 10 months out of the 60 monthly installments have been paid with the remaining 50 months yet to be paid,” he said.

The coalition however commended Governor Emmanuel for the judicious use of funds paid to Akwa Ibom leading to unprecedented delivery of development projects in key sectors. It praised his feat in infrastructural development including delivering the Ikot Oku Ikono flyover, the longest in the South-south region; the 21-storey Dakkada Towers, the 7th tallest in the nation, the best network of modern roads in the region while leading in rural electrification among other projects.

“This is in addition to running a fleet of 5 CRJ  900 Bombardier and two Airbus A220-300 Series, the recent purchase of two brand new Airbuses to bring the Ibom Air fleet to nine aircraft, as well as, constructing the most intelligent and smartest airport terminal in the region.”

Even though the Bayelsa State government has refused to join issues with Governor Wike, a source close to the state government said Governor Duoye Diri has been judicious and transparent in the use of funds paid to the state on tangible development projects that have continued to transform the state in key sectors.

The source, who spoke with THISDAY on account of anonymity because she was not authorised to speak on the issue, said flyovers are not the priority of the state because the state does not have the kind of traffic congestion Port Harcourt is suffering from.

“Anybody who wants to know how Bayelsa’s money is spent should attend the Transparency Briefing of the state where every money the state government receives and spends is revealed. Nobody should make us feel as if we are not working. Flyovers are not our priority in Bayelsa State. We don’t have traffic congestion like in Port Harcourt.

“The state has its peculiar challenges in health, education, roads and others. And the Governor Diri government is tackling them. Do you know what it takes to construct roads in difficult terrain like Bayelsa? We are very transparent in Bayelsa State,” the source said.