FG Commits to Ensuring Kogi Receives Due 13% Derivation Fund
By Patience Ikpeme
The federal government has pledged its readiness to ensure that Kogi State receives its due share of the 13% derivation fund as and when due, following its recent recognition as an oil-producing state.
The commitment was made by the Chairman of the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), Dr. Mohammed Bello Shehu, on Tuesday during a crucial interactive session with a high-level delegation led by Kogi State Governor, His Excellency, Alhaji Ahmed Usman Ododo, at the commission’s headquarters.
The meeting focused on establishing the mechanism for the state to begin benefitting from the 13% derivation fund.
RMAFC Pledges Fairness and Support
Dr. Shehu assured Governor Ododo of RMAFC’s unwavering commitment to a fair and just fiscal federalism, stating the commission’s devotion to the transparent and equitable distribution of revenues as stipulated by law. He maintained that the state would receive everything that is rightfully due to it.
“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,” Dr. Shehu stated. “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 further promised the delegation the full support of the Commission, adding: “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.”
Following the discussions, the Chairman directed the constitution of a committee comprising officials from RMAFC’s Gas Investments and Crude Oil Departments, the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), and the Kogi State government. This committee is tasked with examining the issues raised and finding appropriate solutions.
Governor Ododo Seeks Clarity on Derivation Benefits
In his address, Governor Ododo expressed concern that despite being blessed with numerous mineral resources, Kogi State is not yet enjoying the corresponding benefits. He sought clarification on why the state was yet to benefit from the 13% derivation fund since its recognition as an oil-producing state, requesting an update on the status of oil and gas activities in the state.
The Governor conveyed his confidence in the Commission’s ability to handle their requests appropriately. “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,” the Governor said.
Other officials at the meeting also contributed to the discourse. Barr. Rakiya Tanko Ayuba-Haruna, Federal Commissioner, Kebbi State, noted that the Commission treats the 13% derivation provision under public funds in the 1999 Constitution with great seriousness, stressing that proper data is essential for states to receive their rightful share.
Hon. (Amb.) Desmond Akawor, Federal Commissioner, Rivers State, advised the state government to thoroughly study the post-Petroleum Industry Act (PIA) frameworks. This, he said, would guide them in any contractual obligation, allowing them to know what belongs to the state and avoid future challenges.
Regarding solid minerals, Dr. Udodirim Okongwu, Director of the Inland Revenue Department (representing the Secretary to the Commission), assured the Governor that the Commission possesses the authority to acquire all necessary data. She recommended that the Governor establish buying centers in the state to ensure that every solid mineral transaction in Kogi is properly attributed.
Kogi State Commissioner for Finance, Budget and Economic Planning, Hon. Ashiru Asiwaju, asserted the state government’s commitment to attracting additional players in the oil and gas sector by deliberately making information available to compel investment.
Meanwhile, Mrs. Ekekhide Jennifer, Assistant Director and Head of the NUPRC delegation, disclosed that production is ongoing from OPL 915 (now OML 155). She highlighted the importance of security and infrastructure development to create a suitable atmosphere for investors in the sector.
The meeting concluded with a consensus between RMAFC and Kogi State to strengthen fiscal governance, promote transparency in managing derivation funds, and ensure that Nigeria’s oil, gas, and solid mineral resources fully contribute to the state’s development and the welfare of its citizens.
