Anambra, Kogi join oil producing states, await 13% derivation fund

Friday Ajagunna
Friday Ajagunna
Gov. Willie Obiano of Anambra

Anambra and Kogi States may 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 a request of Governor Willie Obiano for due share of revenue accruing to the nation from oil and gas production activities in Anambra state.

In the letter, the states would also benefit from the 13 percent Derivation fund once the proceeds from the oil wells are contributed to the Federation Account.

In the approval letter signed by RMAFC’s secretary, M.B. Shehu, and addressed to Governor Obiano, the Commission approved the attribution of eleven oil wells wholly to Anambra state.

The Commission also approved attribution of Anambra River One, Two, and Three oil wells, to be shared on fifty- fifty percent basis between Anambra and Kogi states, pending the final delineation of boundaries of the two states.

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.

Meanwhile, the Commission insisted that for the states to benefit from the 13% Derivation Fund, the proceeds from the operations of the oil wells should be contributed to the Federation Account.

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