Kogi joins oil-producing states, to get 13% derivation fund

The Revenue Mobilisation Allocation and Fiscal Commission has confirmed Kogi as an oil-producing state, saying it stands to benefit from the 13 per cent derivation fund.

The commission, in a confirmation letter to the state governor made available to newsmen on Wednesday, said the state would start to benefit from the fund as soon as the proceeds from the operating ODA River 1 oil well and Anambra River 1, 2 and 3 oil wells start contributing revenue into the federation account.

A statement by the Chief Press Secretary to the Governor, Onogwu Mohammed, said the Governor, Yahaya Bello, had expressed the state government’s appreciation to the President, Major General Muhammadu Buhari (retd.), for the recognition of Kogi as one of the oil-producing states in the country by RMAFC.

The confirmation letter signed by the Secretary to the commission, M. B. Shehu, said, “Re – Request to declare Kogi State as oil and gas producing state. I wish to refer to your letter of 20th August 2021 on the above subject and to inform you that the commission at its plenary session held on 27th July 2021 approved the attribution of ODA River oil well to Kogi State.

“Furthermore, the commission approved the attribution of Anambra 1, 2 and 3 oil wells in a 50-50 basis between Anambra and Kogi states pending the final delineation of the boundary between the two states.”

According to Onogwu, the governor said with the recognition, the age-long oil wells dispute that resulted in unwarranted killings and destruction of property between two communities of Odeke in Ibaji Local Government Area of Kogi and Aguleri in Anambra State has come to an end.