A’Ibom govt says no cause for alarm over revenue drop
By Theresa Ukpong, Uyo
Akwa Ibom state government has dispelled tension that the fall in its revenue was due to force majeure declared by ExxonMobil that would negatively Impact on governance and the economy of the state.
Recalled that ExxonMobil suffered a fire incident in December 2020 on one of its platforms which led to disruption in its production capacity thereby forcing the oil giant to declare a force majeure
In a statement issued in Uyo, the commissioner for information and strategy, Comrade Ini Ememobong disclosed that the force majeure declared by ExxonMobil has affected the revenue allocation to the state.
Ememobong, however, assured that the Governor Udom Emmanuel administration was capable of weathering the economic storm while providing delivering on his Completion Agenda for the people of the state.
“The truth as admitted by ExxonMobil is that in December 2020, they declared a force majeure due to a fire incident on one of their platforms. It is common knowledge that our country depends almost solely on crude oil and any slight disruption in production will consequentially affect the country’s earnings, which will in turn reduce the volume of revenue available in the distributable pool, from where states draw their statutory allocation from.
“The implication of this reduction in revenue obviously indicates that an economic challenge is likely, but there is certainly nothing to worry. We have as a state been through an economic doom before in 2016, but divine Providence, through our governor, Mr Udom Emmanuel, helped the state to weather the storm and we made it through.
Despite the impending challenge, the factors that worked for us in the past have not changed and will sure work for us again. “The processes of production declaration through to financial remittance to the federation account and subsequent allocation takes an unabridged period of 90 days, which clearly explains why a force majeure declared in December, 2020 can reflect and become an issue in March 2021”, he said.
The commissioner said it was unfortunate that some persons and groups have capitalized on the incident to cast aspersions on the government and feed the people with falsehood just to score cheap political points. He urged indigenes of the state to continue to support the current administration as the temporary setback would soon be over.
“Our people are therefore invited to continue to offer their support to the government in varied ways, trusting that God who was our help in ages past, will remain our present refuge and our future hope”.