September 08, (THEWILL) – Kogi and Anambra States have finally joined the league of Oil Producing States in Nigeria as their oil wells have been recognised by the Revenue Mobilisation Allocation And Fiscal Commission (RMAFC).
The development is sequel to a letter from RMAFC to the Governor of Kogi and Anambra States.
The RMAFC in a letter addressed to the Kogi State governor, Yahaya Bello, officially recognised Kogi as an oil producing state.
The letter dated August 24, 2021 with reference RMC/COD/58/VOL/I/4, was signed by the secretary to RMAFC, M.B Shehu.
The RMAFC had earlier in a letter signed by M.B. Shehu, and addressed to the Anambra State governor, Willie Obiano, approved the attribution of eleven oil wells wholly to Anambra state.
The eleven oil wells wholly attributed to Anambra state, are; Nzam-One oil well, Alo- One oil well, and Ogbu- One oil well.
Others are Ameshi One, Two, Three and Four oil wells, as well as Enyie One, Two, Three, and Four oil wells.
In the letter sent to Bello, RMAFC also approved the attribution of Anambra River one, two and three oil wells to be shared on a fifty percent basis between Anambra and Kogi — pending the final delineation of boundaries between the two states.
“I wish to refer to your letter dated 10″ August 2021 on the above subject and to inform you that the commission at its 139th plenary session held on 27″ July 2021 approved the attribution of Oda River oil well-1 to Kogi State,” the letter reads.
“Furthermore, the Commission approved the attribution of Anambra River 1, 2 and 3 oll wells on a 50:50 percentage basis between Anambra and Kogi States pending the final delineation of the boundary between the two States.
“Accordingly, Kogi State will start to benefit from the 13% Derivation fund as soon as proceeds from the operation in Oda River 1 oil well or Anambra River 1, 2 or 3 oil well starts contributing revenue into the Federation Account.”
With this developments, Kogi and Anambra now joined the eight oil-producing states of Abia, Akwa-Ibom, Bayelsa, Delta, Edo, Imo, Ondo and Rivers that are entitled to a 13 percent derivation fund.
The 13 percent derivation fund comes from the federation revenue to oil-producing communities through the state governments as enshrined in section 162, sub-section 2 of the Nigerian Constitution.
However, the Commission insisted that for the states to benefit from the 13% Derivation Fund, the proceeds from the operation of the oil wells should be contributed into the Federation Account.
THEWILL gathered that the oil wells in Anambra and Kogi States are not producing at the moment.
