Investor Presentaiton
SUMMARY OF FINDINGS
VACIOE
ASSOCIATES
States that manage the
derivation funds through a
revenue management
commission like Abia, Delta,
Edo, Ondo and Imo States,
have a better focus on the
development of the rural oil
producing oil communities in
their States. Unlike Akwa
Ibom, Bayelsa and Rivers
States who focus more on the
development of urban areas,
who are rarely oil producing.
areas.
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States that manage their
derivation funds through
commissions, are required to fund
the commissions with a
percentage of the derivation funds
received. The funding percentage
ranges from 40-50 per cent.
These states except for Ondo
State, who pays its Commission
more than the percentage
prescribed, rarely comply with the
prescribed funding percentages.
These States subsequently pool
the balance of the derivation
funds into a centralized pool
where other expenditures of the
States are made
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States like Delta, Akwa Ibom
and Bayelsa, spent an
abysmally low average of 6,
11.5, 16.4 and 7.4 per cent
respectively, on their social
capital expenditures during
the years reviewed,
notwithstanding that the
derivation funds received by
these States during the
reviewed years, represented
an average of 40.6, 53, 41 and
34 per cent respectively, of
the States' total revenues
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