Kogi now oil producing state, receives first derivation payment

Friday, 21 October 2022 06:21

Kogi now oil producing state, receives first derivation payment

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Kogi State Governor, Yahaya Bello has confirmed receipt of first payment of the 13 percent derivation fund as an oil producing state.

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 percent derivation fund from the federation account just like its counterpart oil producing states.

The commission however said that the state would only start to enjoy the 13 percent derivation when the Ibaji oil well starts production and contributes to the federation account.

It is unclear however, if the oil well has commenced production.

This makes Kogi the first northern state to enjoy such privilege in the country.

Speaking further on the development, the state information commissioner said that it was true and expressed delight at the development.

“This means that the governor will have more funds to execute his many people-oriented projects he has started,” the commissioner noted.

Punch