Kogi State has received its first derivation allocation as an oil-producing state, making it the first northern state to enjoy such privilege in the country.
The Kogi State Governor, Yahaya Bello, confirmed the receipt of first payment of the 13 per cent derivation fund as an oil-producing state.
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Bello disclosed this on Wednesday at a weekly executive council meeting held at the Lugard House in Lokoja.
The Revenue Mobilisation Allocation and Fiscal Commission had classified Kogi State as an oil producing state, which qualifies it to receive 13 per cent derivation fund from the federation account like other oil-producing states, adding that the state would start enjoying the fund when the Ibaji oil well began production and contributed to the federation account.
Speaking on the development, Governor Bello said his administration had recorded many giant strides in the sectors covering the thematic areas of his New Direction Blueprint, adding that the “derivation allocation will make us do more for our people”.
Bello said, “I am elated to announce to the good people of Kogi State that my administration has received our first derivation allocation as an oil producing state. This announcement is in line with my administration’s commitment to transparency and accountability, for which we have received many awards.
“We worked hard to make this history. But we wouldn’t have achieved it without the support of our people, who stood resolutely with us to make this see the light of the day. We also wish to express our gratitude to President Muhammadu Buhari for his leadership roles as well as the RMAFC for making this a reality.
“Let me reiterate this to the people of Kogi State that my promise to make their resources work for them is iron cast. We will build more schools, hospitals and construct more roads. We will empower our youths and women. Under my watch, we will ensure security.”
Addressing pressmen after the State Executive Council meeting, the State Commissioner for Information and Communications, Kingsley Fanwo, said the derivation allocation came at a time the state government was building legacy projects across the state, stressing that the governor would ensure “judicious use of the derivation allocation”.
“The governor has once again proved that he is a goal getter with the tenacious manner he defended the interest of the state to be listed as an oil producing state. History will remember him for this feat,” he stated.
Kogi and Anambra states joined the league of oil producing states in Nigeria last year after their oil wells had been recognized by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).
