In a decisive move that could reshape revenue distribution for emerging oil-producing states, the Revenue Mobilisation Allocation and Fiscal Commission has thrown its full support behind Kogi State’s push to begin receiving its constitutionally guaranteed 13 per cent derivation fund.
The development marks a pivotal step in the state’s long-standing struggle for recognition and equitable resource allocation.
The Chairman of the Commission, Dr Mohammed Shehu, delivered the assurance on Tuesday during a high-level session with Kogi State Governor, Alhaji Ahmed Usman Ododo, at the Commission’s headquarters in Abuja.
The engagement brought renewed clarity to what has become a contentious national fiscal issue.
According to a statement issued by the Commission’s Head of Information and Public Relations, Maryam Umar-Yusuf, the meeting focused on the validation of Kogi’s oil-producing status, its access to the derivation fund, and the broader strategy for optimising the state’s natural resource assets.
Ensuring fiscal justice under the focus keyword: RMAFC backs Kogi on 13% oil derivation share
At the interactive session, Shehu underscored the Commission’s statutory mandate to guarantee fairness and transparency in national revenue allocation—principles at the heart of the focus keyword.
He stressed that Kogi, like any state with verifiable petroleum resources, must receive its full derivation entitlements under the law.
“Our responsibility is to ensure that every oil-producing state gets its lawful share of national revenues, whether from crude oil, gas, or solid minerals,” Shehu stated.
He added that the Commission would continue to protect and document Kogi’s claims in line with the national revenue framework.
Shehu assured Governor Ododo that the Commission was prepared to deploy all necessary institutional mechanisms to ensure transparency, accuracy, and fairness in the computation and release of Kogi’s share.
“Whatever concerns you bring before us, we will address them within the law. We stand ready to provide the appropriate data, technical support, and guidance required to optimise these resources for the benefit of your people,” he said.
Multi-agency committee to resolve bottlenecks
In a bid to address lingering discrepancies surrounding the derivation fund, the RMAFC chairman approved the establishment of a multi-agency committee.
The committee will comprise representatives from the Commission’s Gas Investments and Crude Oil Departments, the Nigerian Upstream Petroleum Regulatory Commission, and the Kogi State Government.
The panel is expected to examine all pending technical, administrative, and regulatory issues delaying the derivation disbursement.
It will also provide a clear roadmap for ensuring seamless access to the funds.
Ododo: Kogi must benefit from its natural endowments
Governor Ododo expressed concern that despite Kogi’s formal recognition as an oil-producing state, it has yet to benefit from the derivation fund.
He emphasised that Kogi’s vast natural wealth—including oil, gas, and a variety of solid minerals—places it in a position to contribute meaningfully to national output.
Ododo stressed that denial of the state’s derivation entitlement has stalled development efforts and hindered the state’s ability to attract large-scale investment in its extractive industries.
“We appreciate the Commission for its commitment and foresight. Kogi is blessed with immense natural resources, and our expectation is that these resources should translate into concrete benefits for our people,” he said.
Ododo reaffirmed his administration’s commitment to deepening engagement with relevant federal agencies and aligning state processes with national regulations.
Federal Commissioners call for accuracy, legal compliance
Other Federal Commissioners present offered critical guidance during the session.
Rakiya Ayuba-Haruna (Kebbi State) stressed the importance of accurate and scientifically verified data in the derivation process.
She noted that errors in data sourcing and reporting could undermine the state’s claims and weaken the allocation framework.
Desmond Akawor (Rivers State) urged the Kogi delegation to thoroughly understand the legal provisions of the Petroleum Industry Act to avoid technical pitfalls and ensure compliance with national regulatory standards.
On solid mineral management, Dr Udodirim Okongwu advised the state to establish official mineral buying centres.
He noted that such centres would help track mineral transactions, simplify data collection, and improve transparency in revenue attribution.
NUPRC confirms ongoing production in Kogi
The NUPRC delegation, led by Assistant Director Mrs Ekekhide Jennifer, confirmed that active production is ongoing from OPL 915—now OML 155—which lies within Kogi territory.
She described the asset as commercially viable but stressed that long-term success depended on improved infrastructure, robust community security, and stakeholder cooperation.
Jennifer urged the state government to prioritise securing oil assets, enhancing logistics infrastructure, and strengthening investor confidence to sustain operations.
The Kogi State Commissioner for Finance, Budget and Economic Planning, Hon Ashiru Asiwaju, assured that the state was intensifying reforms to attract new investors.
He said transparency, stronger financial governance, and better communication with stakeholders would form the core of the state’s investment drive.
Historic disputes still unresolved
Despite renewed assurances, Kogi’s struggle for derivation benefits remains complicated by a long-running boundary dispute over the Anambra Basin oil fields.
The basin, jointly claimed by Kogi, Anambra, and Enugu States, has been at the centre of competing ownership claims for more than a decade.
Although the RMAFC recognised Kogi as an oil-producing state in 2021, and the Senate confirmed that the state began receiving the 13 per cent derivation in October 2022, Kogi insists that the funds have not been credited as expected.
The situation has fuelled tensions between the affected states and created uncertainty around the correct administrative and fiscal channels.
A step toward restoring equity
The renewed collaboration between RMAFC and Kogi State signals what may be the clearest path yet toward resolving the derivation controversy.
With the new multi-agency committee, updated data verification processes, and strengthened regulatory engagement, stakeholders say the state is closer than ever to receiving its full fiscal entitlements.
For Kogi, securing its derivation share is not merely a revenue issue—it is a catalyst for economic development, improved infrastructure, and empowerment for oil-producing communities.
And for the Commission, the move aligns with its commitment to fairness, accountability, and national balance in resource distribution.
