Kogi state has joined the league of oil-producing states in Nigeria as their oil wells have been recognized by the Revenue Mobilisation Allocation And Fiscal Commission (RMAFC).
The state would benefit from the 13 percent derivation fund once the proceeds from the oil wells are contributed to the federation account.
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In an approval letter signed by RMAFC’s secretary, Mr. M.B. Shehu, and addressed to governor Yahaya Bello, the commission approved the attribution of oil wells in Kogi state.
The commission also approved attribution of Anambra river one, two, and three oil wells, to be shared on a fifty-fifty percent basis between Anambra and Kogi states, pending the final delineation of boundaries of the two states.
Meanwhile, the Commission insisted that for the states to benefit from the 13% derivation fund, the proceeds from the operation of the oil wells should be contributed to the federation account.
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The letter dated 24 August, titled ‘Request to declare Kogi state as oil and gas producing state,’ 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 139 plenary sessions 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 percentage 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 percent derivation fund as soon as proceeds from the operation on Oda River 1 oil well or Anambra river 1,2 or 3 oil starts contributing revenue into the federal account.”
It has however been reported that the oil well in Kogi state is not producing at the moment.
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