Breaking News

Littoral states want extra derivation like Bayelsa

THE presidential concession granted Bayelsa State to receive extra derivation funds from nine offshore oil wells has sparked a row in the Federal Accounts’ Allocation Committee, FAAC, meeting as the other littoral states are asking for similar treatment

With the concession, Bayelsa is henceforth entitled to get additional revenue from the wells located beyond the 200-metre Isobath provided for in the derivation law.

Other littoral states including Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers were yet to be granted the privilege of getting extra derivation from wells located outside of the 200-metres in their areas.

The concession was granted based on a special request by the Bayelsa State Governor, Timipre Sylva and advice from the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission, RMAFC, the Director-General of the National Boundary Commission and the Surveyor-General of the Federation, SGF.

Already, the revised 13 per cent derivation indices for the month of July, which was prepared based on the concession, put Bayelsa State ahead of other littoral states with 15,995,773 bbls.


Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.