The derivation revenue accruable to Bayelsa government
witnessed a sharp drop from N3 billion in July 2016 to N1 billion in August
2016 according to figures released by the state government.
Several attacks by
militants in the months of May and June reduced oil production from oilfields
in Bayelsa as Shell and Agip had shut down crude production and export.
Niger Delta Avengers
had on May 28, and 29 2016, blown up the Nember Creek Trunk line and the Brass
Terminal crude line, the two pipelines that convey crude produced by Shell and
Agip.
Investigations revealed that the attacks which had grounded
oil export from the state was responsible for the revenue drop as the
derivation principle is proportionate to
the volume of oil produced from the states with oil deposit.
The derivation revenue which is 13 per cent of crude sales
from the state for the month of August was N1 billion less while proceeds from
July stood at N3 billion.
It was further gathered that the August oil revenue
disbursed at the last Federation Account Allocation Committee (FAAC) was for
crude oil sales proceeds for May 2016 oil production.
Retired Rear Admiral John Jonah, Deputy Governor of Bayelsa had
on Friday presented the financial status of the state to newsmen at the
Government House Yenagoa.
He declared a deficit balance of N1.9 billion, said N1.4
billion was spent on bank loans, civil servants’ salaries N2.1 billion, capital
payment of N3.2 billion, recurrent payment N1.4 billion.
While that of political appointees came up to N472million,
thereby bringing the total outflows to N8.9 billion.
Jonah, had announced a gross inflow of N8.7 billion.
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