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"Oil Revenue Rift: APC and PDP Governors Clash Over Federation Funds"

By Achimi Muktar

A simmering dispute over oil revenue sharing has erupted between governors from Nigeria’s ruling All Progressives Congress (APC) and the opposition People’s Democratic Party (PDP), spotlighting tensions over the allocation of crude earnings under President Bola Tinubu's administration.

Bala Mohammed, Bauchi State Governor and Chairman of the PDP Governors’ Forum, has accused the Federal Government of failing to properly remit oil revenues to the Federation Account. Speaking during a visit from Minister of Finance and Coordinating Minister of the Economy, Wale Edun, Mohammed criticized the opaque handling of oil funds, stating that state governments had yet to see the benefits of improved oil sector revenue.

“A Miracle We Haven’t Benefited”

Governor Mohammed called for transparency, asserting that the failure to channel oil earnings into the national treasury has hampered states' ability to deliver critical services.

"It’s a miracle that we are one of the biggest oil-producing nations, yet we have not benefited for some time since you came on board," he remarked during the meeting at Bauchi’s Government House.

He urged the Federal Government to not only increase oil production and sales but ensure the proceeds are shared equitably among the tiers of government, as mandated by law.

"You must provide financial services to us at the subnational level. Without the states, there will be no Federal Government," Mohammed added.

PDP Governors Demand Accountability

The PDP leader questioned why, despite the removal of fuel subsidies—a move expected to bolster federal revenue—states are still grappling with insufficient funds.

Reports indicate that the Nigerian National Petroleum Company Limited (NNPCL), now a profit-oriented enterprise, has contributed significant sums to the Federation Account since the subsidy removal. In 2023, it contributed ₦4.5 trillion in nine months and added ₦431 billion in the first seven months of 2024.

Still, Mohammed claimed that states were not adequately benefiting from these remittances, urging the Finance Ministry and NNPCL to explain the discrepancies.

APC Fires Back: “Show Us the Evidence”

In a swift rebuttal, the APC dismissed Mohammed’s claims as baseless. Nze Chidi Duru, Deputy National Organizing Secretary of the APC, called on the governor to present concrete evidence of his allegations rather than resort to what he described as “generic and verbose” statements.

"Our government is not averse to correction, but criticisms must be constructive. Governor Mohammed must provide specifics if his claims are to be taken seriously," Duru said in an interview.

He argued that this administration has overseen unprecedented allocations to states and local governments, challenging Mohammed to account for how these resources have been utilized.

"This is the first time in our history that such large sums have gone to various tiers of government. The opposition should spotlight where there are leakages instead of gaslighting," Duru added.

The Revenue Puzzle

The PDP’s grievances center on the perception that oil earnings, particularly following subsidy removal, are not reaching their intended beneficiaries. However, APC leaders maintain that significant funds are being disbursed and question whether states are effectively managing these resources.

Stakeholders had hoped the deregulation of the petroleum sector, which resulted in a 490% increase in petrol prices, would lead to improved revenue sharing. While the NNPCL has reported increased contributions, PDP governors argue that these figures have yet to translate into tangible benefits at the state level.

Calls for Transparency

The clash underscores the need for greater transparency in Nigeria’s oil revenue system. Both parties agree that plugging revenue leakages is crucial, but their disagreement over whether the current administration is fulfilling this mandate continues to fuel the debate.

Efforts to obtain clarification from the NNPCL were unsuccessful, as spokesperson Femi Soneye did not respond to inquiries.

As the dispute unfolds, Nigerians are left to wonder: Where is the oil money going, and why aren’t states reaping the benefits?