Kogi, Anambra now Oil Producing States as commission recognises their oil wells

Kogi, Anambra now Oil Producing States as commission recognises their oil wells

Abuja Sept. 8, 2021, The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has recognised Kogi and Anambra as Oil Producing States in Nigeria.

The development is sequel to a letter from RMAFC to the governors of Kogi and Anambra  States.

The commission in a letter dated August 24, 2021 with reference RMC/COD/58/VOL/I/4,  signed by its Secretary, M.B Shehu and addressed to  Gov. Yahaya Bello of Kogi, officially recognised the state as oil producing ones.

The RMAFC in an earlier letter by its secretary and addressed to Gov. Willie  Obiano of Anambra approved the attribution of 11 oil wells to the state.

The 11 oil wells are; Nzam-One oil well, Alo- One oil well, Ogbu- One oil well, Ameshi One, Two, Three and Four oil wells, as well as Enyie One, Two, Three, and Four oil wells.

In the letter to the Kogi governor, RMAFC also approved the attribution of Anambra River one, two and three oil wells to be shared on a 50 per cent basis between Anambra and Kogi pending the final delineation of boundaries between the two states.

“I wish to refer to your letter dated August 19, 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.

“Furthermore, the Commission approved the attribution of Anambra River 1, 2 and 3 oil wells on a 50:50 per cent 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 per cent derivation fund as soon as proceeds from the operations in Oda River 1 oil well or Anambra River 1, 2 or 3 oil well starts contributing revenue into the federation account,” the letter said.

Newsatlarge reports that with this developments, Kogi and Anambra  has joined the eight oil-producing states of Abia, Akwa-Ibom, Bayelsa, Delta, Edo, Imo, Ondo and Rivers.

The states are entitled to a 13 per cent derivation fund for oil producing states.

The derivation fund comes from the Federal Government revenue allocation to oil producing communities through the State Government’s as enshrined in section 162, sub-section 2 of the Nigerian Constitution.

The commission however, stressed that for the states to benefit from the 13 per cent derivation fund, the proceeds from the operations of the oil wells should be contributed into the federation account.

The oil wells in Anambra and Kogi are however, not producing at the moment.(https://newsatlarge.ng).

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