News

February 29, 2024

Senate affirms Kogi as an oil producing state receiving 13% derivation

Court dismisses senior lawyers’ suit challenging appointment of judges in Kogi
By Henry Umoru

The Senate has affirmed Kogi State as an oil producing state receiving 13% derivation as stipulated for by section 162(2) of the 1999 Constitution (as amended).

Affirmation of Kogi as an oil producing state receiving 13% derivation by the Senate, was sequel to a motion sponsored to that effect by Senator Jibrin Isah, APC, Kogi East

Senator Isah’s motion came 24 hours after heated debate between him and Senator Tony Nwoye, LP, Anambra North on the status of Kogi as an oil producing state receiving 13% derivation .

Recall that Tony Nwoye in his presentation at Senate plenary on Wednesday, on a bill seeking for inclusion of Anambra State in the operational radius of the Niger Delta Development Commission ( NDDC) had argued that Kogi State is not receiving 13% derivation like Anambra State, Echocho countered him that Kogi State has been a receiver of the 13% derivation since October 2022.

Not comfortable with Senator Nwoye’s position, Isah on Thursday came under Order 42 of the Senate Standing rules for the affirmation of Kogi as an oil producing State, benefitting from the 13% derivation.

The singular prayer of Senator Isah’s motion read : “
Urge the Senate to take the clarification that Kogi State is an oil producing state which has been receiving the constitutional 13% derivation since October 2022; and
accord it the necessary recognition as an oil-producing state”.

In his presentation, Senator Isah said that “the Senate submitted thus : “Notes that oil has been the mainstay of the Nigerian economy right from 1956 when it was discovered in commercial quantity at Oloibiri in the present Bayelsa State.

“Further Notes that after the discovery of crude oil in commercial quantities in Oloibiri, other discoveries were made in other parts of the country, including the present Abia, Akwa Ibom, Rivers, Cross River, Delta, Edo, Ondo, and Imo States.

“Informed that oil was later discovered in commercial quantities in Odeke, Echeno, Ihile, Anocha/Uchuchu, Omabo, Ikah, Iregwu and Ujeh all in Ibaji community of the present-day Ibaji Local Government Area of Kogi State.

“Further Informed that after due assessments and consultations, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), under the administration of President Muhammadu Buhari GCFR, officially listed Kogi State as an oil producing state in 2021.

“Aware of the peculiarities of the oil producing States, the Constitution of the Federal Republic of Nigeria, under section 162(2), directs the constant reflection of the principle of derivation of not less than 13% in any approved revenue allocation formula.

“Recall that in a debate on a Bill to amend the Niger Delta Development Commission (Establishment, etc.) Act No.86 LFN 2004 (SB 271) before this distinguished Senate on Wednesday, 28th February 2024, the sponsor of the Bill, Senator Tony Nwoye, stated that Kogi State is yet to start receiving the constitutional 13% derivation as an oil producing state.

“Cognisant that upon the official recognition by the RMAFC in 2021, the Kogi State Government officially received the first 13% derivation in October 2022 and has continued to receive it till date.

“Further Cognisant that the receipt of the first 13% was officially acknowledged by the Kogi State Government in a state broadcast on Wednesday, October 19, 2022, which was widely published in national dailies which reported Kogi State as the first northern oil producing state to get 13% derivation. Copies of those publications are attached for ease of reference.