The nine major oil producing states of Delta, Akwa Ibom, Rivers, Bayelsa, Edo, Ondo, Imo, Abia and Anambra are owing N1.56 trillion, Daily Trust’s investigation has shown.
This is despite the increase of N405 billion revenue derivation fund they received from June last year to January this year, in addition to their earnings from the Federation Account Allocation Committee (FAAC).
Their debts increased by over N26 billion from June last year and January this year.
The derivation fund is the revenue paid by FAAC to states that produce oil and other minerals that are used to earn foreign exchange for the country.
Since the federal government removed the petrol subsidy mid last year, states of the federation have seen huge increases in their monthly allocations, which have now exceeded the N1 trillion.The Domestic Debt Data Report of the Debt Management Office showed that the nine oil-producing states had a total combined debt of N1.56 trillion representing about 25 per cent of the entire debts of the 36 state states and the FCT which stood at N5. 7 trillion as of the end of December 2023.
