New Telegraph

FG is owing us fuel subsidy money, says Bayelsa

The Bayelsa State Government has said that the Federal Government was owing the state a lot of money in terms of fuel subsidy as it said that the state consumes only 0.56% of fuel on daily basis while the NNPC collects about 5% of subsidy money from the oil derivation money.
Speaking Wednesday in Yenagoa, the state capital, during the transparency briefing for the months of July and August, the Commissioner for Finance, Maxwell
Ibibai, who reeled out the financial position of the state, disclosed that for NNPC to be collecting that subsidy without bringing the money back to the state was a breach of the constitution.
He said that 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 5% 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.”
He continued: “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% derivation to Bayelsa State and all other oil producing states to the table.”
The commissioner disclosed that the state had about N5.4 billion left in the coffers of the state government as at August ending.
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 explained that all money seen in the proposed budget are monies not yet received adding that before any loan will be obtained, the state House of Assembly will approve.

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