ANAMBRA STATE TO BENEFIT FROM 13% DERIVATION FUND AS REVENUE COMMISSION APPROVES 11 OIL WELLS
By R. F. Diete-Spiff, Esq.
In a letter dated August 24, 2021 with reference number RMC/O&G/48/VOL/I/55 being signed by M. B. Shehu, Secretary to the Commission at the 139th plenary session held on 27th July, 2021, a total of 11 Oil wells have been allocated to Anambra State by the Revenue Mobilisation Allocation and Fiscal Commission (RMFAC). Invariably, this will make Anambra to be counted amongst the list of Oil producing states in the country, thereby entitled to the 13% derivation.
Sections 162 (2) of the 1999 Constitution of the Federal Republic of Nigeria (as amended) makes provision for 13% derivation fund to be made available to Oil producing states. The commission further approved the placement of Anambra River one, two and three oil wells to Anambra and Kogi state which is to be shared equally amongst them in furtherance to when the boundary delineation will be concluded. The said letter further approved the following oil wells to Anambra state, they are; Nzam-1 oil well, Alo-1 oil well, Ogbu-1 oil well, Ameshi-1, 2, 3 and 4 oil wells, Enyie 1, 2, 3 and 4 oil wells. Recent study shown between 2009 – 2019, evidenced that Eight oil producing states including Abia, Akwa-ibom, Bayelsa, Delta, Edo, Imo, Ondo and Rivers received the sum of N6.589 trillion. However, the 13% derivation would take effect when the revenue from the operations of the oil wells start contributing to the federation account.
The inclusion of Anambra State as oil producing states is coming at an appropriate time. Without doubt this feat will attract job opportunities and infrastructural development for the state and its local environment. The Federal Government will benefit immensely from revenue and foreign direct investment. It is hoped that the States will understudy the ills that retrogressed the development of other oil producing states, who were endowed with oil and gas resources, to properly invest its share of the commonwealth for sustainable development and empowerment of her people.
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