Niger Delta Avengers: Bayelsa derivation revenue crashes from N3 billion to N1bn

Posted by News Express | 1 October 2016 | 2,031 times

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The bombing campaign of the Niger Delta Avengers has cut oil revenue accruable to Bayelsa Government from N3 billion in July 2016 to N1 billion in August 2016, according to figures released by the State Government on Friday.

The militant group had on May 28 and 29, 2016 blown up the Nembe Creek Trunkline and the Brass Terminal crude line, the two pipelines that convey crude produced by Shell and Agip, respectively.

The attack had effectively grounded oil export from the state which is responsible for the revenue drop that has put Bayelsa Government finances in the red.

The derivation revenue for the month of August was N1bn less than the previous month which stood at N3bn.

The August oil revenue disbursed at the last Federation Account Allocation Committee (FAAC) was for crude oil sales proceeds for May 2016 oil production.

Retired Rear Admiral John Jonah, Deputy Governor of Bayelsa, declared a deficit balance of N1.9bn. He said N1.4bn was spent on bank loans, civil servants’ salaries N2.1bn, capital payment of N3.2bn, recurrent payment N1.4bn, while that of political appointees came up to N472 million, thereby bringing the total outflows to N8.9bn.

Jonah had announced a gross inflow of N8.7bn.

A USAID report presented by Bayelsa Non Governmental Organizations Forum two weeks ago scored Bayelsa Government low on transparency despite the efforts.

On FAAC deductions totaling N2.3 billion, Jonah said bond gulped N1.2bn, restructured commercial bank loan accounted for N741 million, commercial agriculture loan schemes One and Two amounting to about N161 million, Excess Crude Account loan N126mn and foreign loan N21mn.

The Deputy Governor noted that the total funds available for spending comprising a net inflow of N6.7bn and IGR of N560mn for the month of July stood at N7.02bn. 

•Photo showsNiger Delta militants.

Source: News Express

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