Anambra State Gets to start Earning 13% Oil Derivation From March, in Big Boost to State's Revenue
- Five months after Anambra State was officially designated an oil-producing state in Nigeria, it set to get its benefits as an oil-producing states
- Anambra State in September 2021, received approval Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) after 11 oil wells were cited in the state
- The new oil revenue will come as a big boost for a state working hard to increase how much money is available to the government
Governor, Willie Obiano has revealed that Anambra State will start to earn the 13% derivation with effect from March 2022, as part of the benefits of its status as an oil-producing state, Nairametrics reports.
This was made known by Obiano on Saturday during a chat with journalists in Aguleri, Anambra East Local Government Area after a tour of the Awka International Convention Centre and Anambra Cargo and passenger airport.
According to a Vanguard newspaper, the governor said he was informed by the Nigeria Midstream and Downstream Pricing and Regulatory Agency (NMDPRA) who had confirmed the lifting of crude oil in commercial quantity in Anambra.
Source: Getty Images
Obiano pointed out that Anambra had 15 oil wells with ENIYE 10940 Oil fields operated by an indigenous oil exploration and production firm, SEEPCO, fully operational and wholly owned by the state.
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What this means
With the approval, the South-eastern state was expected to be eligible to benefit from the 13% derivation fund, which minerals-producing states in Nigeria are statutorily entitled to.
States with 13% derivation fund
Specifically, Nigerian Oil producing states include Delta, Akwa-Ibom, Bayelsa, Rivers, Edo, Ondo, Imo, and Abia.
A sum of N424.02 billion was shared among eight oil-producing states in Nigeria in the year 2020 as part of 13% oil derivatives.
The figure for 2020 is yet to be made published by the Federal Account Allocation Committee (FAAC).
Nigeria accidentally discover oil in the northeast region
Meanwhile, Legit.ng had earlier reported that minister of state petroleum, Chief Timipre Sylva, said the country accidentally discovered 1 billion barrels of crude oil in the Northeast.
According to him, a lot of oil is yet to be found in Nigeria and there was a need for more exploration in the country as more oil would be discovered.
He also noted that when the Port Harcourt refinery is completed, President Muhammadu Buhari government would have achieved a lot.
Source: Legit.ng
