9 States Receive N670.55bn 13% Oil Derivation Funds in 5 Months

The nine Nigerian oil-producing states received a total of N670.55 billion as their 13 per cent oil derivation funds from the Federation Account in the first five months of 2025, marking a significant increase compared to the previous year. This amount represents a 17.97 per cent rise (N102.13 billion) over the N568.43 billion disbursed in the same period of 2024.

This is as the Abia State Oil Producing Areas Development Commission (ASOPADEC),  advocated for an increase in derivation fund allocation to oil producing areas in the country.

The current derivation fund for oil-producing states in Nigeria is 13 per cent of the mineral revenue from crude oil, as constitutionally mandated under Section 162, Sub-section 2 of the Nigerian Constitution. This fund is intended to compensate the states for the environmental and economic impacts of oil exploration and production.

Data from the Federation Account Allocation Committee (FAAC)  indicates that oil-producing states collectively received a total of N124.07 billion as their 13 per cent derivation fund from the Federation Account in May 2025, which  included N116.89 billion from statutory oil-related revenue and an additional N7.17 billion from exchange rate gains related to crude earnings

For the month of April 2025, oil-producing states, which comprises of Akwa Ibom, Bayelsa, Delta, Edo, Ondo, Rivers, Imo, Abia, and Anambra, with Delta, Akwa Ibom, Bayelsa, and Rivers, received N152.553 billion as their 13 per cent derivation fund from the Federation Account

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In March 2025, the derivation fund allocation to the states was approximately N132.611 billion, while in the first two months of 2025, the total derivation revenue paid to oil-producing states was about N261.32 billion.

General Manager of  ASOPADEC, Joshua Onyeike, stated this when a team from the Revenue Allocation Mobilisation and Fiscal Commission (RMAFC) visited him in Umuahia, the state capital.

Onyike pointed out that the review was necessary to enable such a commission to tackle the peculiarities of problems and developmental needs of the oil producing communities.

His words: “In line with our mandate, we  require more funds to continue to complement the striving transformation efforts of Governor Alex Otti in the state.”

He said the visit marked a remarkable point in the records of the ASOPADEC to leverage on, to better the lot of oil producing areas and other parts of the state.

‎Earlier, the team lead and federal  commissioner representing the state in the RMAFC, Nkechi Oti said they came to seek further areas of cooperation with the ASOPADEC .

‎She lauded Governor Alex Otti for his quality leadership, adding that the government needs every support from her office for the overall interest of the state.

‎Highlight of the visit was an interactive session between the team and the management of the ASOPADEC on its challenges and the way forward.