Presidency approves Anambra’s recognition as oil producing state

Posted by News Express | 1 September 2021 | 939 times

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•Governor Obiano



Anambra has received the approval of the Presidency to be recognised as an oil producing state.

Consequently, Anambra will begin to benefit from the 13% derivation fund as the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), under the Presidency, has assented to the request of Governor Willie Obiano to attribute oil wells within the state’s  geographical boundaries as wells belonging to Anambra State.

In a letter addressed to Governor Obiano on August 24, 2021 and signed by its Secretary, M. B. Shehu, the Commission approved the attribution of about 11 oil wells to Anambra State. The oil wells include Nzam 1, Alo 1, Ogbu 1, Ameshi 1,2,3,4 and Enyie 1, 2, 3, 4.

The Commission further approved the attribution of Anambra River 1, 2 and 3 oil wells to Anambra State but noted that the wells will be shared equally with Kogi State until the boundary between the two states is clearly delineated.

It said that the 13 percent derivation will take effect when the said revenue from the operations of the said oil wells starts contributing into the Federation Account.

Governor Obiano had written the commission in March this year, requesting it to attribute the oil wells to Anambra State. “The letter follows assiduous efforts by the Obiano-led Anambra State Government to ensure that the State is rightfully and legally recognized as an oil producing State.”

This is happening for the first time in the history of Anambra, according to the State Government. It said: “It is a testament to the relentless effort of the Obiano administration to bequeath enduring legacies to ndị Anambra. It fulfills the visionary decision of Gov Obiano to make oil & gas the fourth pillar of his Economic blueprint.

“Though realized almost at the end of his administration, this development accentuates the determination and commitment of Governor Obiano towards upholding his pledge to ndị Anambra, to leave the State better than he met it.

“The future promises to be better as Anambra State prepares to start benefitting from the 13% derivation fund as soon as operations in the oil wells begin to contribute revenue to the Federation Account.”

Source: News Express

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