Bayelsa State government said that the federal government was owing it a lot of money in terms of fuel subsidy alleging that the state consumes only 0.56 per cent of fuel on daily basis while the Nigerian National Petroleum Corporation (NNPC) collects about five per cent of subsidy money from the oil derivation fund.
The state government through the commissioner for finance, Maxwell Ibibai, said despite several complaints, the NNPC had been collecting subsidies without bringing the money back to the state, insisting that it was a breach of the constitution.
Ibibai, while speaking in Yenagoa, the state capital, during the transparency briefing for the months of July and August, alleged that the state is being double charged, adding that: “Our 13% is being collected. Our federation account and statutory revenue are being collected.”
He said the state was being double charged adding that: “Our 13% is being collected. Our federation account and statutory revenue are being collected, “What is happening currently is that Bayelsa State is being double charged. The total fuel consumed in the state is 0.56% of the total fuel consumed in Nigeria. Bayelsa State is paying over five per cent of the total subsidy in Nigeria.”
Ibibai asked, “When the figures are reconciled, will Bayelsa State still be owing? It is a constitutional issue so they have no choice than to obey the constitution.
“If it gets to a point that the whole thing fails, we go to court for the interpretation of section 162 and let’s see where it is allowed for NNPC to deduct revenue and call it recovery of cost policies in the name of policy without bringing the 13 per cent derivation to Bayelsa State and all other oil producing states to the table.”
The finance commissioner said the state had about N5.4 billion left in the coffers of the state government as at August end.
Earlier, the commissioner for information and strategy, Ayuba Dubai, had pleaded with the media to help put the records straight that the state government had not borrowed N40 billion as captured in the 2021/2022 budget.
He said all money seen in the proposed budget are money not yet received, adding that before any loan will be obtained, the state House of Assembly will give approval.