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The Edo government confirms receiving only N2.1 billion as oil-derived funds

The Edo government confirms receiving only N2.1 billion as oil-derived funds

According to the Edo State Government, only N2.1 billion of the N28 billion that was due to the state as a 13 percent oil derivation fund for oil-producing states has been received.

In a press conference with journalists following the weekly Executive Council (EXCO) meeting at the Government House in Benin City, which was presided over by Governor Godwin Obaseki, Edo State Commissioner for Budget and Finance, Mr. Joseph Eboigbe, revealed this.

The Commissioner stated that N1 trillion was set aside for oil-producing states, and the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) created a system for distribution. He also stated that N28 billion accrued to the state and will be paid in 5 years in 20 tranches.

The net amount will be distributed to each state over five years in 20 tranches, he said. You will receive payments four times a year for more than five years, or four releases, in total. The releases began this year in October 2022 because of several legal cases from different states.

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He added that they are anticipating 20 quarterly tranches for more than five years, but we have only received three of the expected 20, and this is verifiable. They have the financial transactions’ records.

Eboigbe stated that It’s only under Governor Obaseki’s administration that you will find capital spending always greater than recur­rent expenditure. The government disburses between N2 and N3 billion monthly for capital expenditure in the state. When capital spending exceeds recurrent expenditure, development takes place. The state almost ran out of money last year when its capital expenditure budget was 90�tualized.

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