By Ubong Sampson – Uyo
Anambra state is set join the league of states that earn the highest monthly allocation from the federal government, following the recent listing of the state as one of the oil producing states in Nigeria.
Anambra state is in the South Eastern region of Nigeria.
An approval granted by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has ratified the attribution of 11 oil wells to the state, hence, positioning it as one of the beneficiaries of the 13% derivation fund which minerals-producing states in Nigeria are statutorily entitled to.
A letter dated August 24, 2021 and signed by the Secretary to the Commission, Mohammed Shehu, the confirmed that Anambra will be eligible for the 13 percent derivation fund immediately it begins to contribute to the federation account.
The letter with reference number RMC/O&G/48/VOL/I/55, and addressed to the governor of the state, Willie Obiano, noted that the decision to designate the state an oil-producing area was taken on July 27, 2021 during the 139th plenary session of the commission.
It also stated a decision by the commission to have the Anambra River 1,2 and 3 oil wells shared on a 50 per cent basis between Anambra and Kogi states, 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.
“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 per cent derivation fund as soon as proceeds from the operation in the above-named oil wells starts contributing revenue into the federation account,” the letter partly read.
As of the last public issue on the state’s struggle to make the list of oil producing states, the Department of Petroleum Resources (DPR) had, while responding to a Senate query on why the state was not listed, gave reasons bothering on inability on the part of the state to meet prerequisite conditions for qualification into the list, stating the fact that the company prospecting for the commodity was yet to scale up its operations from an oil prospecting to an oil mining lease, as one of such conditions.
Anambra is to join Lagos, Delta, Imo, Abia, Bayelsa, Edo, Ondo, Rivers and Akwa Ibom in the league of oil producing states.
