By Bassey Udo
States benefiting from the 13 percent derivation have been assured of a fair, transparent and equitable of their entitlement.
The Chairman of the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), Dr. Mohammed Bello Shehu, gave the assurance in Abuja on Tuesday when a high-level delegation from Kogi led by the governor, Alhaji Ahmed Usman Ododo, visited him in his office.
He said that now that Kogi has been recognised as one of the oil producing states in the country, the Commission would look at how best the state can start benefitting from the payment of 13 percent derivation fund from the Federation Account.
He assured that delegation that the Commission would ensure that Kogi State received its due share of the 13% derivation revenue as and when due.
Dr. Shehu, who underscored the commitment to a transparent and equitable distribution of revenues to the beneficiaries as stipulated by law, assured the Governor of the Commission’s unwavering commitment to a fair and just fiscal federalism, promisinh that the state would get whatever is 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. Our role is to ensure that the state receives its rightful share of the resources, whether from oil, gas, or solid minerals, and that every allocation is properly documented and protected,” he said.
“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,” he added.
The Chairman directed the setting up of a committee, comprising officials from Gas Investments and Crude Oil Departments of RMAFC, NIgerian Upstream Petroleum Regulatory Commission ( NUPRC) and Kogi State government, to look into the issues raised by the delegation with a view to finding appropriate solutions to them.
In his speech, Ododo lamented that Kogi was not enjoying the benefits of the numerous mineral resources the state was blessed with, wondering why it was yet to benefit from the 13% derivation fund since its recognition as an oil producing state.
The governor therefore sought information on the status of oil and gas activities in the state.
He however expressed confidence that the Commission would handle the requests of the delegation appropriately.
“Let me 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 utilized for the benefit of our people,” he said.
In her contribution, the Federal Commissioner representing Kebbi State, Barr. Rakiya Tanko, Ayuba-Haruna, noted that the Commission takes very seriously the issue of the 13% derivation under public funds in the 1999 Constitution, adding that proper data were essential to ensure states received what was rightfully theirs.
On his part, the Federal Commissioner for Rivers State in the Commission, Amb. Desmond Akawor, advised the state government to study the post-PIA frameworks for guidance on any contractual obligation, to know what belongs to the state and avoid challenges in the future.
On the management of solid minerals, the Director, Inland Revenue Department, Dr. Udodirim Okongwu, who represented the Secretary to the Commission, assured the Governor that the Commission was empowered to get every data required.
She advised the governor to establish buying centers in the state to get attribution for every solid mineral transaction in the state.
The Commissioner for Finance, Budget and Economic Planning, Kogi State, Ashiru Asiwaju, said the state government was committed to attracting additional investors in the oil and gas sector by deliberately making available the information that would guide their investments decisions.
The Assistant Director and Head of Nigerian Upstream Petroleum Regulatory Commission (NUPRC) delegation, Mrs. Ekekhide Jennifer, disclosed that oil production was already ongoing from OPL 915 (now OML 155).
She emphasized the importance of security and infrastructure development in the mineral producing areas to provide a suitable atmosphere for investors in the sector.
The meeting underscored the shared commitment of RMAFC and Kogi State to strengthen fiscal governance, promote transparency in the management of derivation funds, and ensure that Nigeria’s oil, gas, and solid mineral resources contribute fully to the development of the state and welfare of its citizens.
