Kogi State receives first derivation payment as oil-producing state

Oredola Adeola

Kogi State has received its first allocation from the payment of the 13 percent derivation fund it shared with Anambra State, through the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC), based on its contributions to national oil and gas production.

Mr. Kingsley Fanwo, Information Commissioner, made this known in a statement after the State Executive Council Meeting at Government House, Kogi.
This has therefore offered the state the opportunity to join the league of oil-producing states including Abia, Akwa Ibom, Bayelsa, Delta, Edo, Ondo, Imo, and Rivers.
EnergyDay gathered that Kogi is a part owner of the oil produced by the Oil Prospecting License (OPL)  915, 916, and 917, with Anambra State, as the three oil wells are located between the boundary communities of  Uzuwani and Enchenwa, Abaji Local Government area of Kogi and  Aguleri in the Anambra East Local Government.
Consequently, based on the data obtained from RMAFC, the two states are expected to share the proceeds from the oil wells equally (50: 50).
In the statement released by Fanwo, the Commissioner said that Gov Yahaya Bello of Kogi State, who dropped the cheering news during the meeting, assured residents of his administration’s determination to continue to record more wins for the state.
He said, “It’s on record that this administration has recorded many giant strides in various sectors covering the thematic areas of our governor’s New Direction Blueprint.
“This new breakthrough in the “derivation allocation will no doubt make us do more for our people.
“ Governor Bello said that the state has received the first derivation allocation as an Oil Producing State.”
“This announcement is in line with the administration’s commitment to transparency and accountability, for which we have received many awards.
“We worked hard to make this history. But we wouldn’t have achieved it without the support of our people, who stood resolutely with us to make this see the light of day.
“We also wish to express our gratitude to President Muhammadu Buhari for his leadership roles as well as the RMAFC for making this a reality,” he stated.
The Commissioner further said that Bello restated his promise to the people that he would ensure that the resources worked for them.
“We will build more schools, and hospitals and construct more roads. We will empower our youth and women. Under my watch, we will ensure security.”
While noting that the allocation came at a time the State Government was building legacy projects across the state, the governor pledged to ensure “judicious use of the derivation allocation”.
“Our governor is a goal-getter with the tenacious manner he defended the interest of the state to be listed as an Oil Producing State, ” the Commissioner said.
EnergyDay’s check showed that Akwa Ibom is the largest contributor, as it’s responsible for 31.4 percent of the nation’s crude oil production, followed by Delta which produces 21.56 percent of the total crude.
Rivers and Bayelsa followed with 21.43 percent and 18.07 percent of the total production, respectively. Others are fringe producers and the list includes Ondo, 3.7 percent, Edo 2.06 percent, Imo, 1.06 percent, and Abia 0.68 percent.
Anambra earned had in September announced the receipt of its  first revenue as an oil producing state. The State received N268million  as 13 percent derivation oil revenue  for the month of July 2022 . The 15 oil wells in Anambra State includes  Nzam -1, Alo-1, Ogbu-1, Ameshi 1, 2, 3 and 4,  and Enyie 1, 2, 3, and 4, in addition to River 1, 2 and 3.
This latest development has heightened political tension in the state, as public officeholders and opposition parties are basking in the euphoria of the benefit that the state will henceforth be receiving as one of Nigeria’s oil-producing states.

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