13 percent derivation fund: Edo only received N2.1bn, Obaseki replies Wike

Governor Godwin Obaseki of Edo has said the state has so far received N2.1billion from federal government out of its N28 billion share of the 13 percent derivation fund.

He said this while responding to the challenge Governor, Nyesom Wike threw to Niger Delta governors on the fund.

Last week in Port Harcourt, Wike said the massive project he was carrying out in the state was made possible through the release of the 13 percent derivation funds.

He commended President Muhammadu Buhari for ordering the release to all  Niger Delta states.

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But speaking through the Commissioner for Finance and Budget, Joseph Eboigbe, in Benin, Obaseki said, “A total of about N1 trillion was established and refunded to the oil-producing states. It went through the process of economic council and a distribution method was adopted from the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC). They now established what will go to each state, Edo state’s share of that figure was N28 billion.

“What was also approved was the way and manner the money will be distributed to the states. The net amount will come to each state over five years. Each year, you will have quarterly remittance. The releases started in October, just last month.”

He said the money was paid to the state in three tranches of N700 million, adding that the money has been spent judiciously.

“Our share was N28 billion and will be distributed over five years. It will be 20 quarterly installment releases. Three has come so far and each has been N700 million. It is less than our monthly Internally Generated Revenue which is N3 billion monthly.”

“N700m is a small amount relative to what we spend. On a monthly basis, Obaseki normally disburses almost N3 billion monthly on capital expenditures. That amount goes across all ongoing projects,” he said.

Also speaking the Commissioner for Information and Orientation, Chris Nehikhare, said the money as well as other monies have been used for the prompt Payment of monthly salaries to state workers.

“Edo State government is the only state paying a minimum of N40, 000 monthly salaries to workers,” he said.

“We are not using our money for fancy projects but to build the system where people are taking care of to make sure life is better.”