RMAFC backs Kogi on 13% oil derivation share

The Chairman of the Revenue Mobilisation Allocation and Fiscal Commission, Dr Mohammed Shehu, has assured that Kogi State will begin to receive its due share of the 13 per cent derivation fund following its recognition as an oil-producing state.

Shehu gave the assurance in Abuja on Tuesday during a high-level interactive session with the Kogi State Governor, Alhaji Ahmed Usman Ododo, and his delegation at the Commission’s headquarters. This was according to a press statement by the Head, Information and Public Relations Unit of the Commission, Maryam Umar-Yusuf, on Wednesday.

According to the statement, the meeting focused on Kogi’s eligibility for the derivation fund, the optimisation of the state’s resource endowments, and the need for transparency in the allocation process. The chairman reaffirmed the commission’s mandate to uphold equity and fiscal justice in the distribution of national revenues.

“Our role is to ensure that the state receives its rightful share of resources, whether from oil, gas, or solid minerals, and that every allocation is properly documented and protected,” he said.

He added, “Whatever issue you table before us, we will try as much as possible, within the provisions of the law, to see that Kogi State gets what it deserves. We will stand firmly with you to provide the data, guidance, and technical support needed to optimise these resources for the benefit of your citizens.”

To address the concerns raised by the state, Shehu directed the establishment of a multi-agency committee comprising representatives from RMAFC’s Gas Investments and Crude Oil Departments, the Nigerian Upstream Petroleum Regulatory Commission, and the Kogi State Government.

The committee is expected to examine the technical and administrative issues delaying the disbursement of the derivation funds and propose solutions.

Governor Ododo, in his remarks, expressed concern over the state’s exclusion from derivation benefits despite its recognition as an oil-producing state. He stressed that Kogi was blessed with a wide range of natural resources, including oil, gas, and solid minerals, yet was not receiving its constitutional entitlements under the 13 per cent derivation formula.

He said, “I thank you most sincerely for this warm reception and for your vision. We look forward to continued engagement with the Commission to ensure that the resources of Kogi State are fully optimised and benefit our people.”

Federal Commissioners of the Commission also weighed in on the discussions. Rakiya Ayuba-Haruna (Kebbi State) stressed the importance of accurate data in the administration of derivation funds, while Desmond Akawor (Rivers State) urged the Kogi delegation to carefully study the legal frameworks introduced by the Petroleum Industry Act to avoid contractual pitfalls.

On the management of solid minerals, Dr Udodirim Okongwu, who represented the Commission’s Secretary, advised the state to establish official buying centres. According to him, this would make it easier to track mineral transactions and provide the necessary data for revenue attribution.

Also speaking, the Kogi State Commissioner for Finance, Budget and Economic Planning, Hon Ashiru Asiwaju, said the state government was committed to attracting more investments in the oil and gas sector by improving transparency and disseminating critical information to potential investors.

The Assistant Director and Head of the NUPRC delegation, Mrs Ekekhide Jennifer, confirmed that production activities were already ongoing from OPL 915 (now OML 155), which falls within Kogi territory. He, however, stressed the importance of infrastructure and security in sustaining oil and gas investment in the state.

The session ended with a shared commitment to improving fiscal governance, ensuring accountability in the management of derivation funds, and using Nigeria’s extractive resources to drive development in Kogi State.

The PUNCH further learnt that Kogi State’s oil-producing status has remained mired in disputes despite its 2021 recognition by the RMAFC and a Senate confirmation that it began receiving 13 per cent derivation in October 2022.

The long-running boundary battle over the Anambra Basin fields, contested by Kogi, Anambra, and Enugu, has fuelled tensions as the state continues to argue that it is not fully benefiting from the nation’s derivation framework.