The Kogi State Governor Usman Ododo is advocating for the state to be included in the 13 per cent oil derivation fund, citing that Kogi qualifies as an oil-producing area.
During a meeting with Minister of Petroleum Resources, Heineken Lokpobiri, in Abuja on Thursday, Governor Ododo announced that significant amounts of crude oil were found in Olamaboro Local Government Area.
However, he expressed regret that the state had not yet experienced the economic advantages usually provided to oil-producing states.
He said, “We have discovered oil in commercial quantity, but Kogi has not received the 13 per cent derivation like other oil-producing states.
“We are pleased for our colleagues in the South-South who enjoy these benefits, but we hope to join them soon.”
Ododo noted that the state’s efforts to secure peace and attract investment to its oil fields were already yielding positive results.
“As a state, we can’t do it alone. We need the federal government’s support to fully develop our oil resources. Some think we receive the 13 per cent derivation already, but we’ve only received N7.8m once. That is not sustainable.”
The 13 derivation, outlined in Section 162(2) of the Nigerian Constitution, assists oil-producing states by transferring benefits to address environmental degradation and deliver vital services in affected communities.
At present, the fund is being received by Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo, and Rivers states. During the initial six months of 2024, these states altogether obtained N341.59bn from the federation account.
Governor Ododo emphasized Kogi’s important location in the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project, positioning the state as a key hub for oil and gas investments.
Furthermore, apart from advocating for oil income, the governor declared that Kogi had achieved the milestone of being the initial state to enforce the new national minimum wage of N72,500 for all government workers.
Responding, Lokpobiri promised federal backing to Kogi, confirming that NUPRC will investigate methods to tap into the state’s oil resources.
Lokpobiri stated that Kogi is now part of the group of oil-producing states, noting that the amount of revenue the state receives will be based on the level of production.