We spent 13% derivation refund on roads, payment of contractors – A/Ibom

The Akwa Ibom government says it spent the 13 percent derivation refund from the Federal Government on road construction, payment of contractors and owners of property affected by various projects executed in the state.

The state government did not, however, mention the specific projects involved. It said, “The funds received have been utilised in the provision of infrastructure, including roads and bridges across the state.”

Governor Nyesom Wike of Rivers State had revealed that the Federal Government refunded the deductions from the 13 percent derivation to oil-producing states, adding that the refund was made for money deducted from 1999. The revelation had sparked agitations from the public who demanded to know how governors of oil-producing states, utilised the refunds.

Addressing journalists in Uyo, the Akwa Ibom state capital, Linus Nkan, the commissioner for finance, alongside his information & strategy counterpart, Ini Ememobong, said the state government did not need to call a town hall meeting to announce that it received money from the Federal Government which he said was paid in tranches since 2021.

According to him, the money has been properly documented and accounted for, adding that the refund was to be for five years. He said the state has so far received the refund in seven tranches.

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Nkan, who said the state government was expecting more refund, added that “the money was deployed in the payment of contractors,’’ pointing out that if the state government were to depend on the monthly allocation from the Federal Government, it would not have been able to implement many of its projects, including roads and bridges.

“It is not possible to have government money in the account of the state government without being accounted for. The money actually started coming into the state government accounts in 2021; the windfall has helped to implement numerous projects. The amount of money received is not up to the number of projects being implemented by the state government,’’ he said.

“It is not true that the state government has been receiving money without proper accountability. From when the money was received, we have been including it in the annual estimates,’’ adding that the expenditure of the government was approved by the state House of Assembly, while the state accountant-general’s report contains the expenditure of the government.

He confirmed that the state government received N160 billion paid in 2021 and N26 billion in 2022.

“In line with proper financial records keeping and public finance transparency, the refund was reflected in the 2021 budget as “other exceptional income, 13 percent derivation arrears which was revised to the tune of N193 billion in 2022, the revised provision was N41.434 billion in the 2023 budget, the estimate for this line item is N100 billion. A simple calculation of these figures will reveal the sustainability thinking disposition that guides the governance of our state.

In his remarks, Eno Ibanga, the state commissioner for works and fire service who was part of the press briefing, explained that the money helped in the payment of contractors for projects being executed across the state, and payment of compensation to property owners affected by the construction of various roads in the state. He said over 80 road contracts have been awarded by the state government.