The inability of the Federal Government through the National boundary commission to embark on proper delineation of the boundary between Kogi and Anambra states may be responsible for the 50/50 sharing formula introduced by the Revenue Mobilization, Allocation and Fiscal Commission, metrobusinessnews.com can confirm.
Consequently, the delay had resulted in loss of several lives and destruction if property ocassioned by the boundary disputes.
Besides, the states and the federal governments may have lost revenue from proceeds of the exploration if decisive action was taken before now.
For instance, Kogi has oil wells, some of which were drilled as far back as the 70s and lately between 1985 to 1987, like the one at Oda river 1
In fact, the acreage or oil mining lease(licence) belongs to Orient Petroleum and Refining Ltd. (OPRL) which are Oil Prospecting Licence (OPL 915 and 916) that fall within Kogi and Anambra State.
While Oda river 1 well is in Kogi State, Anambra river 1,2,&3 wells are in dispute as to which state is located.
Indeed, It was these disputes over the ownership of these wells that led to the crises between Aguleri communities in Anambra and Ibaji Communities in Kogi.
The ideal thing, according to sources close to the wells, would have been the Federal Government carrying out a joint survey, but which was never carried out in the area to demarcate the boundary between the two states.
Consequently, it was as a result of the absence of the boundary demarcation that the Revenue Allocation and Fiscal Commission had to resort to a 50/50% share for the two states, our sources reliable gathered.
“The euphoria of Kogi becoming a member of oil producing states is because oil and gas are usually the main stay of some economies of some states or countries, hence, the 13% derivation which oil producing states enjoy from Federation account will contribute immensely to the state revenue thereby boosting the growth and development of the states. Similarly, countries like Saudi Arabia, Kuwait, and Venezuela etc are enjoying same today. However, ours had to be shared with our neigbours because the Federal Government failed in its responsibility to do a proper boundary adjustment and this has caused both states thousands of lives and properties,“ laments an indigene of Echeno, a town where the oda well is located.
Speaking further, he said, the most “annoying aspect is that despite the fact that the state government realizes the existence of oil and gas deposits, but no accessible road to Oda1 which is in Echeno.”
It was also gathered that efforts by Peter Obi, then governor of Anambra and some board members of Orient Petroleum specifically Chief Emeka Anyaokwu, former secretary to Common Wealth who requested Kogi State under Gov. Ibrahim Idris to buy and own shares in Orient Petroleum and Refining Ltd, which would have quickened the exploration process was not embraced by the later.
Despite the lost opportunity, some stakeholders, particularly from Kogi East said the action of the commission may have brought to an end the age long boundary disputes between the two ommunities of Odeke in Ibaji local government area and Aguleri which have 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 new status will only come to fruition only when the oil wells start contributing to the Federation account.
According to a letter to Governor Yahaya 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.
However, Gov. Bello had expressed the state government’s appreciation to
President Buharis’s decision, which he said has brought peaceful resolution of the dispute.
