RMAFC moves to onboard Kogi as 13% derivation beneficiary

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has declared its readiness to commence full onboarding of Kogi State among states eligible for the 13 per cent derivation fund, following its recognition as an oil-producing state

Chairman of the Commission, Dr. Mohammed Shehu, made the commitment on Tuesday, in Abuja, when he received the Governor of Kogi State, Alhaji Ahmed Usman Ododo, who led a high-powered delegation to the Commission’s headquarters in Abuja for an interactive session on the state’s entitlements under Nigeria’s fiscal framework.

Dr. Shehu assured the governor that the Commission would ensure that Kogi receives every kobo due to it under the derivation principle, in line with constitutional provisions.

Head of Information and Public Relations of the commission, Maryam Yusuf, in a statement this afternoon, quoted the Chairman as saying, “Whatever issue you table before us, we will try as much as possible, within the provisions of the law, to see that Kogi State gets what it deserves. Our role is to ensure the state receives its rightful share of resources, whether from oil, gas, or solid minerals, and that every allocation is properly documented and protected.”

According to him, the commission remained committed to transparency and equity in revenue distribution, adding that Kogi would enjoy the full backing of RMAFC as it begins its journey as one of Nigeria’s oil-bearing states.

The Chairman directed the immediate constitution of a joint technical committee comprising officials of the Gas Investments and Crude Oil Departments of RMAFC, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Kogi State Government to harmonise data, evaluate production status, and address all pending issues delaying Kogi’s onboarding.

Ododo: “Kogi not benefiting from its mineral wealth”
Governor Ododo expressed concern that despite Kogi’s abundant mineral endowments and recent recognition as an oil-producing state, it had yet to benefit from the 13% derivation fund.

He queried the status of ongoing petroleum operations within the state and emphasised the importance of accessing accurate data to support its claims.

The governor said, “Kogi is not enjoying the benefits of the numerous mineral resources it is blessed with. We do not understand why we are yet to benefit from the 13% derivation since our recognition as an oil-producing state. I thank you for this warm reception and your vision. We look forward to continued engagement with the Commission to ensure the resources of Kogi State are fully optimised for the benefit of our people.”

Stakeholders speak on data, frameworks and mineral governance
In her remarks, Federal Commissioner representing Kebbi State, Barr. Rakiya Ayuba-Haruna, noted that the 13% derivation fund remained a matter of constitutional importance, stressing that accurate data collection was essential for the integrity of allocations.

Also contributing, Federal Commissioner representing Rivers State, Hon. Desmond Akawor, advised Kogi to thoroughly study the post-PIA regulatory frameworks to avoid entering into agreements that could shortchange the state in the future.

On the solid minerals component, Dr. Udodirim Okongwu, Director of Inland Revenue Department, who represented the Secretary to the Commission, said RMAFC had statutory powers to obtain all necessary data. She encouraged the state to establish mineral buying centres to ensure proper attribution for solid mineral transactions.

Kogi State Commissioner for Finance, Budget and Economic Planning, Hon. Ashiru Asiwaju, reaffirmed the state’s resolve to attract new investors into its oil and gas assets by providing relevant geological and commercial data.

NUPRC confirms production activities
Head of the NUPRC delegation, Mrs. Ekekhide Jennifer, disclosed ongoing production activities in OPL 915, now renamed OML 155, adding that improved security and infrastructure would be pivotal to boosting investor confidence.

Shared commitment to fiscal justice

The meeting highlighted the collective resolve of RMAFC and the Kogi State Government to deepen fiscal governance, strengthen transparency in the allocation and management of derivation funds, and ensure that the nation’s oil, gas and mineral wealth translate into meaningful development for the people of Kogi State.

culled from vanguard