Saturday 1 October 2016

Niger Delta Avengers: Bayelsa Derivation revenue crashes from N 3billion to N1 billion



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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