FG Recognises Kogi As Oil-producing State, To Get Oil Derivation Fund

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Kogi State has been recognised by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) as an oil producing state.

RMAFC confirmed this in a letter dated August 24, 2021, and signed by its Secretary, M.B Shehu.

According to the letter which was addressed to the state Governor, Yahaya Bello, the commission has attributed Oda River oil well- 1 to the North Central state.

The letter added that the state is also eligible for the 13 percent derivation fund as enshrined in Section 162, Sub-section 2 of the Nigerian Constitution.

It added that the commission has also approved the attribution of River one, and three oil wells to be shared on a fifty percent basis between and Kogi pending the final delineation of boundaries between the two states.

The letter reads: “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.

“Furthermore, the Commission approved the attribution of 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 States.

“Accordingly, Kogi State will start to benefit from the 13% Derivation fund as soon as proceeds from the in Oda River 1 oil well or River 1, 2 or 3 oil well starts contributing revenue into the Federation Account.”

Meanwhile, Governor Bello has appreciated President Muhammadu Buhari for recognising the state as one of the oil-producing states in the country.

During a visit to the villa in Abuja on Tuesday, the governor thanked the President for resolving the age-long oil well dispute between the state and State

While addressing at the villa, Bello said: “The aim of my visit to Mr President this afternoon was to thank him for the recognition of Kogi State as one of the Oil-producing states in the country. And we also discussed the issue of Ajaokuta Steel Complex which Mr President said all efforts are ongoing to ensure the steel complex comes up before the end of his administration.”