The Anambra State Government has said that about N250 billion is needed annually to put in place infrastructural projects required to build the state into a livable homeland.
Christian Aburime, the Chief Press Secretary to the Anambra State Governor, Prof. Chukwuma Soludo, who disclosed this, stated that the figure was based on the governor’s calculation and projection before coming into office.
Aburime stated these while speaking to our correspondent in Awka on Monday, in reaction to the state government’s receipt of her first share of the 13 per cent derivation in her new status as an oil-producing state in Nigeria.
The state was confirmed an oil-producing state by the Revenue Mobilisation Allocation and Fiscal Commission in August, 24, 2021, through a letter with the reference RMC/O&G/48/VOL/I/55, and signed by the RMAFC Secretary, M.B Shehu, which automatically entitled it to the 13 per cent derivation fund.
Shared monthly, the 13 per cent derivation fund comes from the Federation Account to oil-producing communities through the state governments, as enshrined in section 162, sub-section 2 of the Nigerian Constitution.
Anambra State, however, got its own first-time share of the derivation fund in July, 2022 — a development that had been greeted with wide commendations from people of the state.
While confirming the receipt of the money, Aburime, stated that the correct amount and first ever 13 per cent derivation received by Anambra State was N268,232,939.
He added that although the 13 per cent derivation was a welcomed development for the government, but it was still a far cry from what the government needed to put infrastructure in place.
Although, the governor had lamented the paucity of funds in the face of enormous infrastructural challenges facing the state since his assumption of office in March, 2022.
The situation had made him take various measures in boosting the internally-generated revenue of the state and also applied for a loan of N100 billion, which had been approved by the state lawmakers.
According to Aburime, the 13 per cent derivation funds has become an addition to the N100bn, which will help the state to begin work from somewhere.
Aburime said, “It is a welcome development that we are now earning 13 per cent derivation fund from the Federal Government. But as it is, it is still a far cry from what the state government needs to put in place the infrastructure it wants to put in place for the people of Anambra State. But at least, something has come in to boost the finances of the state.
“It is still not enough, the government still needs to source additional funds, that was the reason we were looking for the N100bn loan to fund the infrastructural project we had earmarked for the 2022/2023 budget.
“Whether the current government was expecting the money or not does not matter, what matters is that Anambra has been designated as an oil-producing state, so, therefore, it means that it is qualified to get the 13 per cent derivation fund and that it came at this time is a welcomed development.
“Before the governor came into office, based on his calculation and projection and to put in place the needed infrastructure, it will cost about N250bn every year to put in those infrastructure required to build that livable homeland.
“So, the N100bn that the governor has asked for will help to begin work on the required infrastructural projects. So, the 13 per cent derivative fund is just like an addition, although, it is still not enough.”