The central government has pledged to Kogi state that it will get its complete share from the 13 percent derivation fund after being officia...
The central government has pledged to Kogi state that it will get its complete share from the 13 percent derivation fund after being officially acknowledged as an oil-producing state.
Chairman of the Revenue Collection, Distribution, and Fiscal CommissionThe RMAFC, Dr. Mohammed Bello Shehu, provided assurance on Tuesday during an interactive meeting at the Commission's headquarters in Abuja, where he welcomed Governor Ahmed Usman Ododo and a group of senior Kogi State officials to discuss the state's qualification and access to the fund.
A statement from the RMAFC mentioned that Dr. Shehu assured the Kogi state delegation that the Commission is dedicated to providing a just and legal allocation of revenue to all concerned parties.
"Regardless of the matter you bring before us, we will do our utmost, within the boundaries of the law, to ensure Kogi State receives its due," he said.
He stated that RMAFC's duty is to ensure that all funds owed to Kogi—regardless of whether they come from oil, gas, or solid minerals—are accurately documented and secured.
"We will strongly support you by supplying the data, advice, and technical assistance required to maximize these resources for the advantage of your people," he stated.
To expedite the process, Dr. Shehu ordered the immediate formation of a joint committee made up of representatives from RMAFC's Gas Investments and Crude Oil Departments, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Kogi State administration. This committee will be responsible for tackling the concerns mentioned and suggesting remedies.
Governor Ododo voiced worries about the state's failure to take advantage of its rich natural resources. He wondered why Kogi had not yet received any portion of the 13 percent derivation, even though it is an oil-producing state.
He asked for clarification regarding current oil and gas operations, showing confidence that the Commission would address the issue thoroughly.
"I sincerely appreciate this welcoming gesture and your perspective. We anticipate ongoing collaboration with the Commission to make sure the resources of Kogi State are completely utilized and serve our community," he stated.
At the meeting, multiple RMAFC commissioners and specialists participated. Federal Commissioner from Kebbi State, Barr. Rakiya Tanko Ayuba-Haruna emphasized that the 13 per cent derivation outlined in the 1999 Constitution is taken very seriously and highlighted the importance of precise data for states to obtain their proper shares.
Hon. (Amb.) Desmond Akawor, the Federal Commissioner for Rivers State, recommended that the Kogi delegation examine current post-Petroleum Industry Act (PIA) structures to gain a clearer understanding of their contractual rights and responsibilities, thereby preventing potential issues down the line.
Regarding solid minerals, Dr. Udodirim Okongwu, Director of the Inland Revenue Department, who spoke on behalf of the Secretary to the Commission, assured the governor that RMAFC has the power to gather all required information.
She urged the state to create mineral purchasing centers to guarantee accurate recognition for every solid mineral transaction.
The Minister of Finance, Budget, and Economic Planning in Kogi State, Hon. Ashiru Asiwaju, mentioned that the administration is dedicated to drawing in additional participants within the oil and gas industry by providing essential data to encourage investment.
Mrs. Ekekhide Jennifer, Assistant Director and Head of the NUPRC team, verified continuous crude oil production from OPL 915 (now known as OML 155).
She further emphasized the need to enhance security and infrastructure in order to establish a favorable climate for investors.
The gathering demonstrated a shared dedication from RMAFC and Kogi State to enhance financial management, encourage openness in handling derivation funds, and guarantee that the state maximizes the advantages of its oil, gas, and solid mineral resources for the progress and well-being of its citizens.
Provided by SyndiGate Media Inc. (Syndigate.info).
