Published in Oil and Gas
Oil Producing States in the country receive 13 per cent derivation as a benefits transfer scheme as stipulated in Section 162, Sub-section 2 of the Nigerian Constitution.
December 21st, 2021
Oil Producing States in the country receive 13 per cent derivation as a benefits transfer scheme as stipulated in Section 162, Sub-section 2 of the Nigerian Constitution.
.png)
Utilisation of these funds have however been trailed by controversies as they appear not to be congruent with the level of development in these states. Rather, many oil-producing communities continue to bear the negative consequences of oil exploration and production.
The derivation fund is paid to states on a monthly basis to assist oil-producing communities in combating environmental pollution and degradation, providing basic amenities such as healthcare, potable water, and paved roads, and empowering community members economically.
The fund is for the exclusive use of oil/gas producing communities as compensation for loss of fishing rights and productive farmlands as a result of oil and gas exploration and production activities.
Support good journalism - the cornerstone of a well-informed society. When you stand behind quality reporting, you empower truth, accountability, and transparency.
Today, a new generation of Nigerians live through the country’s prolonged battle with two of its biggest socio-economic deficiencies – a protracted housing deficit and recurrent budget deficits.
A recent review of the 2019 Auditor General’s report by Dataphyte reveals that there was an unexplained net change of N668.162 billion in reserves of the consolidated statement of changes in net assets and equity.
Leading Media research and data analytics organisation, Dataphyte has released its maiden Dataphyte Advisory Note titled “the Nigerian post-oil Economy Advisory Note.
Oil Producing States in the country receive 13 per cent derivation as a benefits transfer scheme as stipulated in Section 162, Sub-section 2 of the Nigerian Constitution.
