Kogi becomes Oil Producing State

Kogi State in the North Central Nigeria has officially joined the Oil Producing States.

A State of about 8 million people has oil and gas deposit in Ibaji Local Government Council in the Eastern Senatorial flank.

In a letter dated 24th August, 2021, with Ref. No. RMC/COD/58/VOL/1/4 which was issued by the Revenue Mobilisation and Fiscal Commission (RMFC) and signed by the Secretary to the Commission, Mr. M.B. Yusuf conveyed approval, stating what the State would stand to benefit financially when the identified oil wells begins operation.

Kogi State which was officially declared as an oil producing State at the 139th plenary session of the Commission even before the official request by Kogi State governor, Alhaji Yahaya Bello in a letter dated 10th August, 2021 stated among other things that the 13% derivation fund would be paid to the State government as soon as proceeds from its oil wells wlere being generated.

The Commission further noted that 13% derivation fund from other disputable oil wells will be shared 50-50 between Kogi and Anambra States pending the final delineation by the National Boundaries Commission (NBC).

Part of the letter which was obtained by CAPITAL POST on Wednesday read:

“I wish to refer to your letter dated 10th August, 2021 on the above subject matter and to inform you that the Commission at its 139th plenary held on 27th July, 2021 approved the attribution of Oda River Oil well 1 to Kogi State

“Furthermore the Commission approved the attribution of Anambra 1, 2 and 3 oil wells on a 50-50 percentage basis between Anambra and Kogi States pending the final delineation of the boundary between the two States.

“Accordingly the 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 1, 2 and 3 oil wells started contributing revenue into the Federal Account.

Kogi State is the first northern State out of 19 that has joined the Oil the States in Nigeria.