News The African Way

Nigerian Oil Producing States: RMAFC Excludes Lagos, Adds Anambra, Kogi to Benefit From 13% Derivation

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) is said to have refused to list Lagos State among beneficiaries of the 13 per cent oil derivation fund, six years after the state became oil-producing state.

A source at the RMAFC said Lagos State has not been added to the list of states benefiting from the 13 per cent derivation “due to some irreconcilable differences” with the State.

Two states- Anambra and Kogi, which are now oil-producing states, benefit from the 13 per cent derivation fund. They joined Delta, Akwa Ibom, Bayelsa, Rivers, Edo, Ondo, Imo and Abia.

Lagos State became an oil-producing state when crude oil was found in commercial quantities in 2016. Yinka Folawiyo Petroleum Company Limited, an indigenous firm and operator of OML 113 offshore Lagos in 2016 announced the commencement of production of crude oil from the field. Other partners are New Age Exploration Nigeria Limited, EER (Colobus) Nigeria Limited, Pan Petroleum (Panoro Energy) Aje Limited and PR Oil and Gas Nigeria Limited.

But Lagos State cannot join states receiving 13 per cent derivation without clearance from RMAFC.

A source at RMAFC said the state has not started benefiting from 13 per cent derivation fund because the government was playing a “hide and seek game”.

RMAFC is disputing information provided by the government in respect of the state’s position on oil production as an oil producing state.

“They are making profit as oil-producing state but don’t want to come clean. Their case is being investigated by the oil and gas committee of the commission, and we are waiting for the outcome of the committee’s investigation,” the source said.

Source: thenigerianpost

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