From the Federal Government came yesterday an assurance that Kogi State will get its full entitlement from the 13 per cent derivation fund following its recent recognition as an oil-producing state.
Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr. Mohammed Bello Shehu, gave the assurance when he hosted Kogi State Governor Ahmed Usman Ododo and a delegation from the Confluence State at the Commission’s headquarters in Abuja.
The Ododo team was at the facility for an interactive session on the state’s eligibility and access to the fund.
A statement from the RMAFC said Dr. Shehu assured the delegation that the Commission is committed to ensuring a fair and lawful distribution of revenue to every beneficiary.
“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,” he stated.
Shehu added that RMAFC’s responsibility is to guarantee that all allocations due to Kogi—whether from oil, gas, or solid minerals – are properly recorded and protected. “We will stand firmly with you to provide the data, guidance, and technical support needed to optimize these resources for the benefit of your citizens,” he said.
To fast-track the process, Shehu directed the immediate constitution of a joint committee comprising officials from RMAFC’s Gas Investments and Crude Oil Departments, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Kogi State government. The committee is expected to address the issues raised and propose solutions.
Ododo expressed concern over the state’s inability to benefit from its abundant natural resources. He questioned why Kogi had yet to receive any part of the 13 per cent derivation despite its status as an oil-producing state.
He sought clarity on ongoing oil and gas activities, expressing optimism that the Commission would handle the matter with diligence.
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“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 optimized and benefit our people,” he said.
Many RMAFC commissioners and experts made contributions.
The Federal Commissioner representing Kebbi State, Rakiya Tanko Ayuba-Haruna, said the 13 per cent derivation provided for under the 1999 Constitution is treated with utmost seriousness and stressed that accurate data is crucial for states to receive their rightful allocations.
Ambassador Desmond Akawor (Rivers State) advised the Kogi delegation to study existing post-Petroleum Industry Act (PIA) frameworks to better understand their contractual rights and obligations and avoid future complications.
On solid minerals, Dr. Udodirim Okongwu, Director of the Inland Revenue Department, who represented the Secretary to the Commission, assured the governor that RMAFC has the authority to obtain all necessary data. She encouraged the state to establish mineral buying centres to ensure proper attribution for all solid mineral transactions.
Kogi State Commissioner for Finance, Budget and Economic Planning, Hon. Ashiru Asiwaju, stated that the government is committed to attracting more players in the oil and gas sector by making critical information available to drive investment.
Mrs. Ekekhide Jennifer, Assistant Director and Head of the NUPRC delegation, confirmed ongoing crude production from OPL 915 (now OML 155).
She also stated the importance of strengthening security and infrastructure to create an enabling environment for investors.
The meeting reflected a joint commitment by RMAFC and Kogi State to improve fiscal governance, promote transparency in managing derivation funds, and ensure that the state fully benefits from its oil, gas, and solid mineral assets for the development and welfare of its people.
