Federal Government Backs Kogi, Assures Full 13% Derivation After Oil Status Breakthrough

According to Ireporter Online, the Federal Government has reassured Kogi State that it will receive its full share of the 13 per cent derivation fund following its formal recognition as an oil-producing state. The commitment was given by the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr. Mohammed Bello Shehu, during a meeting with Governor Ahmed Usman Ododo and a delegation from the state at the Commission’s headquarters in Abuja.

The governor’s team visited the Commission for an interactive session to clarify the state’s eligibility and access to the derivation funds. In a statement issued by RMAFC, Dr. Shehu emphasized that the Commission remains dedicated to ensuring equitable and lawful distribution of revenue to all qualified beneficiaries. He assured the visiting delegation that Kogi State would get its rightful dues within the framework of the law.

Dr. Shehu further stressed that the Commission’s duty includes safeguarding all allocations accruing to the state from oil, gas, and solid minerals. He guaranteed that RMAFC would provide the data, guidance, and technical support required to help Kogi maximize its natural resource potential for the benefit of its citizens.

To accelerate resolutions, the RMAFC chairman ordered the formation of a joint committee comprising officials from the Commission’s Gas Investments and Crude Oil Departments, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Kogi State government. The committee will review the issues presented and recommend actionable solutions.

Governor Ododo expressed concern that despite Kogi’s wealth of natural resources, the state had yet to benefit from the derivation fund. He sought clarity on ongoing oil and gas operations and expressed confidence that the Commission would approach the matter with fairness and diligence. The governor also appreciated RMAFC for the warm reception and reaffirmed the state’s readiness to continue engaging the Commission to ensure full optimization of its resources.

Several commissioners and experts from RMAFC contributed during the session. Kebbi State’s Federal Commissioner, Rakiya Tanko Ayuba-Haruna, underscored the constitutional importance of the 13 per cent derivation and highlighted the need for accurate data to guarantee correct allocations. Ambassador Desmond Akawor of Rivers State advised the Kogi delegation to familiarize themselves with post-PIA frameworks to fully understand their contractual rights and obligations.

On solid minerals, Dr. Udodirim Okongwu, Director of the Inland Revenue Department, reaffirmed RMAFC’s authority to access all necessary data and encouraged Kogi to establish mineral buying centres to ensure proper resource tracking. Kogi’s Commissioner for Finance, Budget and Economic Planning, Hon. Ashiru Asiwaju, reiterated the government’s commitment to attracting more investors by ensuring transparency in critical resource-related information.

Mrs. Ekekhide Jennifer, representing NUPRC, confirmed ongoing crude production from OPL 915, now designated OML 155, and emphasized the need for improved security and infrastructure to attract further investment.

The meeting ended with a shared resolve between RMAFC and Kogi State to strengthen fiscal governance, enhance transparency in derivation fund management, and ensure the state fully benefits from its oil, gas, and mineral resources for the overall development and welfare of its people.