The Bayelsa State Government has confirmed receiving N3 billion from the federal government’s flood prevention fund, allocated in August to states at high risk of flooding. The disclosure was made on Monday by Timiore Seipolou, the technical adviser to the governor on treasury and accounts, during a breakdown of the state’s August and September revenue profile in Yenagoa.
Bayelsa is one of 21 states listed under the National Emergency Management Agency's (NEMA) 2024 Flood Alert for high-risk flooding areas, making the federal fund crucial for disaster preparedness.
Despite being a major oil-producing state, Bayelsa is now reaping more from exchange rate gains than actual oil proceeds, reflecting the sliding value of the naira against the dollar.
In August, Bayelsa’s oil derivation revenue stood at N8.69 billion, accounting for 31% of the state’s total revenue. However, exchange rate gains brought in a whopping N22.99 billion, representing 46% of the revenue for that month.
The state’s gross revenue from the Federation Accounts Allocation Committee (FAAC) for August totaled N28.36 billion, with N792.89 million coming from statutory revenue and N5.72 billion from Value Added Tax (VAT). Internal revenue streams added another N2.46 billion to the state’s coffers.
Amid rising revenue, the state spent N6.56 billion on debt service obligations to commercial banks, raising concerns about its growing financial commitments. However, cumulative revenue, including proceeds from signature bonuses, oil production, and sundry income, totaled N90.89 billion in August.
In September, the trend continued with exchange rate gains contributing N10.75 billion, about 36% of the state’s revenue. Oil derivation revenue followed at N9.08 billion (30%), while statutory revenue stood at N847.67 million.
VAT proceeds amounted to N5.58 billion, while internally generated revenue increased slightly to N2.58 billion.
As Bayelsa battles mounting economic challenges, questions arise about how the N3 billion flood fund will be utilized. Stakeholders are calling for accountability and transparency, especially as flooding continues to threaten lives and livelihoods in the state.
Observers have also raised concerns about the state’s growing dependence on exchange rate fluctuations for revenue, warning that this could leave Bayelsa vulnerable to future economic shocks.
With economic pressures mounting, all eyes are now on Governor Douye Diri’s administration to see how it balances flood preparedness, debt servicing, and sustainable revenue generation in the coming months.
