Anambra officially joins league of oil-producing states

By Eloyi Matthew

Anambra State has officially joined the league of oil-producing states in Nigeria, following an approval granted by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), which has ratified the attribution of 11 oil wells to the state.

With the approval, the state is expected to henceforth be eligible to benefit from the 13 per cent derivation fund, which minerals-producing states in Nigeria are statutorily entitled to.

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For the state, it has been a long-drawn-out battle to be recognised as an oil-producing state, but with the Department of Petroleum Resources (DPR) insisting for years that the state had not met all the pre-conditions to be added to the list.

THISDAY reports that two years ago, the DPR when confronted by the Senate on why the state had not been recognised, insisted that Anambra, Enugu, and the Kogi States could not be declared oil-producing states until the company prospecting for the commodity scaled up its operations from an oil prospecting to oil mining lease.

But in the approval which was contained in a letter signed by the Secretary to the RMAFC, Mr Mohammed Shehu, and dated August 24, 2021, the commission stated that Anambra will be eligible for the 13 per cent derivation fund immediately it begins to contribute to the federation account.

Addressed to Governor of Anambra State, Mr Willie Obiano, the letter with reference RMC/O&G/48/VOL/I/55, stated that the decision to designate the state an oil-producing area was taken at the RMAFC’s 139th plenary session held on 27, July 2021.

In addition, the revenue mobilization body also approved the attribution of Anambra River 1,2, and 3 oil wells to be shared on a 50 per cent between Anambra and Kogi states, pending the final delineation of boundaries between the two states.

“Anambra State will start to benefit from the 13 per cent derivation fund as soon as proceeds from the operation in the abovenamed oil wells start contributing revenue into the federation account,” the federal agency stressed.