Senate affirms Kogi as oil producing state receiving 13% derivation

Senate affirms Kogi as oil producing state receiving 13% derivation

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By Akinsuroju Olubunmi

Senate affirms Kogi as oil producing state receiving 13% derivation

Senate affirms Kogi as oil producing state receiving 13% derivation

 

The Senate has officially recognized Kogi State as an oil-producing state entitled to receive the 13% derivation fund as stipulated in section 162(2) of the 1999 Constitution (as amended). This affirmation came following a motion sponsored by Senator Jibrin Isah from Kogi East.

 

The motion was prompted by a debate between Senator Isah and Senator Tony Nwoye from Anambra North regarding Kogi’s status as an oil-producing state entitled to the 13% derivation. Senator Nwoye had raised doubts during a Senate plenary session about Kogi’s eligibility for the derivation fund.

 

In response, Senator Isah invoked Order 42 of the Senate Standing Rules to seek clarification and recognition of Kogi’s status. His motion emphasized Kogi’s historical significance in Nigeria’s oil industry, dating back to the discovery of crude oil in various parts of the state.

 

Senator Isah highlighted that Kogi was officially listed as an oil-producing state by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) in 2021, paving the way for the state to start receiving the 13% derivation from October 2022.

 

The motion underscored the constitutional provision mandating the allocation of not less than 13% of oil revenue to producing states, emphasizing Kogi’s entitlement to this allocation.

 

Furthermore, Senator Isah referenced official acknowledgments from the Kogi State Government regarding the receipt of the 13% derivation, including a state broadcast on October 19, 2022, which was widely reported in national dailies.

 

The Senate’s affirmation of Kogi as an oil-producing state receiving the 13% derivation reinforces the state’s position in Nigeria’s oil economy and ensures its equitable participation in revenue allocation.

Senate affirms, Kogi State, oil-producing, 13% derivation

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