NNPC responsible for Bayelsa State low Federal allocation

The Bayelsa State government yesterday blamed the Nigeria National Petroleum Corporation (NNPC) for dwindling federal allocations to states.


The government said despite all progressive economic indices, revenue accruing to states continue to reduce instead of improving.

Deputy Governor Rear Admiral John Jonah insisted there was no reason why the allocation should not improve.

Jonah spoke while presenting the income and expenditure profile of the state for une and July at the Government House, Yenagoa.

The deputy governor said states were worried that while every analysis showed improvement in revenue generation, the NNPC continued to present a position contrary to the Governors’ Forum’s with regard to remittances.

Jonah observed that crude oil exploitation improved following reduction in militancy in the Niger Delta just as the naira was devalued by 100 per cent, which ought to have resulted in improved federal allocation.

Jonah said:  “So, even if you are not increasing, the thinking of the Governors’ Forum is that as long as you have devalued, you can compensate for the loss of crude oil exported. Now the oil increased, we are always the victim. Niger Delta violence, but now they are out there enjoying, having a field day. Nobody disturbs.


“Why should money be reducing while all the variables you can identify are very favourable and increasing. Till now, as far as I am concerned, they have not given us an answer.”

The deputy governor said since Nigerians started criticising the subsidy payment, NNPC changed the name.

He said the NNPC claimed Nigeria consumed 60 million litres of petrol per day while the Department of Petroleum Resources (DPR) said 36 million litres were being consumed per day.

But he noted the NNPC paid subsidy on 60 million litres, adding that on the issue of smuggling, the entire border filling stations had a capacity of four million litres.

He argued that even if Nigeria was supplying neighbouring countries, it could not be up to 10 million litres.

“The Nigeria Customs said  that we we are consuming 38 per cent. Of course they pay subsidy on something that does not exist. As far as Governors’ Forum is concerned, they are paying subsidy and they pay it from Excess Crude Account. These are the things that make our 13 per cent go down.


“We want to urge people to investigate the figures put out by the NNPC as they are not ghosts.”

He faulted people who said Niger Delta states had so much money without finding out what accrues to other states and councils.

Jonah said the NNPC could not answer questions raised by the Governor’s Forum, the Customs and the DPR on petrol consumption figure.

The deputy governor said as a result, the state has to make do with the balance of N4.14 billion for June and July.

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