Subsidy Removal: Bayelsa government criticizes the distribution of the 13% derivation by NNPCL

Bayelsa State government has expressed its concern that despite the removal of fuel subsidies by the Federal Government, there has been no corresponding increase in revenue allocation to the state, despite a notable increase in revenue generated at the national level.

In July, President Bola Tinubu announced in a telecast that his regime has saved over one trillion naira in the past two months following the removal of subsidy on petrol.

Speaking on Friday in Yenagoa during a transparency briefing for the months of Jun/July, 2023, the special adviser to the Bayelsa State Governor of Treasury and Accounts, Timipre Seipolu added that the 13% derivation which is supposed to come to the oil producing communities supposed to have increased hugely.

Seipolu maintained that there is this believe that when fuel Subsidy is removed, there will be an increase of what states should receive from FAAC through what it will generate adding that figures are not reflecting it instead some are even reducing.

He said that government is also concerned that the money should have increased but the increase has not occurred.

He asked “What is the effect of Fuel Subsidy removal on our funding? Although there is an ongoing discussion at the FAAC level that the 13% derivation fund which is expected to come directly from production and sales should increase, we are yet to see them reflect on our monthly receipts.

“NNPC which is in charge of production and sales should do all that and give us feed back through huge dividends.

“If all these lucunas are addressed we believe that this Fuel Subsidy removal will benefit the oil producing communities.

On the palliative to the states he however, added the state government had received 2billion naira but noted that it will be declared in the August transparency briefing.

He said that the government was already making efforts to come up with a full programme for the palliative in the state.