Anambra State has officially joined the list of oil-producing states in Nigeria.
This is followed by an approval granted by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) after it ratified the attribution of 11 oil wells to the state.
The South-eastern state will now benefit from the 13 per cent derivation fund, which minerals-producing states in Nigeria are statutorily entitled to.
Anambra now joins Akwa Ibom, Rivers, Cross River, Delta, Bayelsa, Ondo, Edo, Imo, Abia, and Lagos after the refusal by Department of Petroleum Resources (DPR) for years on the ground that the state has not met all the pre-conditions to be added to the list.
Recall that two years ago, the DPR when asked by the Senate on why the state had not been recognised, insisted that Anambra, Enugu and Kogi States could not be declared oil-producing states until the company prospecting for the commodity scaled up its operations from an oil prospecting to oil mining lease.
But in the approval which was contained in a letter signed by the Secretary to the RMAFC, Mr. Mohammed Shehu, and dated August 24, 2021, the commission stated that Anambra will be eligible for the 13 percent derivation fund immediately it begins to contribute to the federation account.
Addressed to the Governor of Anambra State, Mr. Willie Obiano, the letter with reference RMC/O&G/48/VOL/I/55, stated that the decision to designate the state an oil-producing area was taken at the RMAFC’s 139th plenary session held on 27, July 2021.
In addition, the revenue mobilisation body also approved the attribution of Anambra River 1, 2 and 3 oil wells to be 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 abovenamed oil wells starts contributing revenue into the federation account,” the federal agency stressed.
