By Editor
Kogi stakeholders have expressed appreciation to the Federal Government for the recognition accorded it as one of the oil producing states.
Specifically, the stakeholders, particularly from Kogi East said the action may have brought to an end the age long boundary disputes between the two ommunities of Odeke in Ibaji local government area of Kogi and Aguleri in Anambra state, which has claimed many lives.
The implication of the recognition is that Kogi and Anambra states would soon begin to enjoy the 13 percent derivation from the federation account.
However, the two states will begin to enjoy the enhanced revenue as soon as the oil wells start contributing to the Federation account.
But, they were quick to call for the judicious use of the resources for the benefit of the impoverished indigenes of the state.
The Ibaji oil crisis has been on for a while and has led to large scale destruction of property with the attendant loss of many lives.
According to a letter to Governor Bello of Kogi, from the Revenue Mobilization, Allocation and Fiscal Commission and signed by M. B. Shehu, the commission said the state will start enjoying the 13 percent derivation as soon as proceeds are received from kogi’s Oda River 1 oil well and Anambra’s River 1,2 and 3 oil wells.
Part of the memo dated August 24 reads :
“Request To Declare Kogi State As Oil and Gas Producing State:
I wish to refer to your letter dated 10th August 2021 on the above subject and to inform you that the commission at its 139th plenary session held on 27th July 2021 approved the attribution of Oda River Oil well-1to Kogi state.
Furthermore, the commission approved the attribution of Anambra River 1,2 and 3 oil wells on a 50:50 percentage basis between Anambra and Kogi states pending the final delineation of the boundary between the two states.
Accordingly, Kogi state will start to benefit from the 13 percent derivation fund as soon as proceeds from the operations in Oda River 1 oil well or Anambra River 1,2 or 3 oil well starts contributing revenue into the Federation account. “
Friday Ameh, Lagos based energy analyst sees this as a welcome development, adding that the singular action will bring two positive impact of enhanced revenue and Halt to loss of lives due to boundary clashes on the state.
Zubairu Salisu commended the governor for his foresight and appealed to him to ensure that the new revenue status of the state will be to the benefit of all as well as engender development.
Earlier, Gov. Bello of had expressed the state government’s appreciation to
President Buharis’s decision, which he said has brought peaceful resolution of the dispute.
The exploration of crude oil in Ibaji Local Government Area which comes under the Anambra Basin in geological terms started in 1952.
