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Anambra to benefit from 13% derivation fund as revenue commission approves 11 oil wells

Anambra to benefit from 13% derivation fund as revenue commission approves 11 oil wells
September 01
09:44 2021

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has approved the attribution of eleven oil wells wholly to Anambra state.

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This is contained in a letter signed by M.B Shehu, secretary to RMAFC, and dated August 24, 2021.

The letter with reference RMC/O&G/48/VOL/I/55 was addressed to Willie Obiano, governor of Anambra.

By implication, Anambra has officially joined the list of oil producing states in the country and therefore eligible for the 13 percent derivation fund.

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The 13 percent derivation fund comes from the federation revenue to oil-producing communities through the state governments as enshrined in section 162, sub-section 2 of the Nigerian Constitution.

In the letter, RMAFC also also approved the attribution of Anambra River one, two and three oil wells to be shared on fifty percent basis between Anambra and Kogi — pending the final delineation of boundaries between the two states.

“I wish to refer to your letter dated 24th March, 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 the following oil wells to Anambra State: 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,” the letter reads.

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“Furthermore, the Commission also 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, Anambra State will start to benefit from the 13% Derivation fund as soon as proceeds from the operation in the above named oil wells starts contributing revenue into the Federation Account.”

A report published earlier this year noted that eight oil-producing states including Abia, Akwa-Ibom, Bayelsa, Delta, Edo, Imo, Ondo and Rivers received N6.589 trillion from the federation account under the 13 percent derivation principle, between 2009 and 2019.

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