Gov Mbah demands Enugu’s share of 13% oil derivation fund

Governor Peter Mbah of Enugu State has asked the federal government to include the state in the disbursement of 13 per cent oil revenue share in line with the Derivation Principle as provided in the 1999 Constitution.

Join the Premium Times WhatsApp Community For Quick Access To News and Happenings Around You.

Open in WhatsApp

Mr Mbah spoke when he received the Indices and Disbursement Committee of the Revenue Mobilisation, Allocation, and Fiscal Commission (RMAFC) at the Government House in Enugu on Tuesday.

RMAFC is Nigeria’s agency that oversees the revenues accruing to various governments and disbursement of such funds from the Federation Account.

The agency, in December 2022, recognised Enugu as an oil-producing state, which ultimately makes the South-eastern state eligible to receive 13% oil revenue.

‘We’re yet to benefit from the 13% revenue share’

Mr Mbah, while receiving the RMAFC team in his office, lamented that Enugu State was yet to receive 13 per cent of the oil revenue from oil fields within the state.

“We still have this pending issue of Enugu State being recognised as an oil-producing state, which your office actually communicated to us sometime in December 2022 based on the report of the Inter-agency Technical Committee.

“The Committee came up with a recommendation that Enugu should be benefiting from the 13 per cent derivation of the Anambra River Basin 1, Anambra River Basin 2, and Anambra River 3. But we have still not benefited from those fields,” he said.

Stay Ahead with Premium Times

Add as a preferred source on Google

“So, it is our hope that your office will put the necessary machinery in motion to ensure that we begin to benefit from that.”

The governor, however, said his administration would not rest on its oars as it was mobilising internal revenue sources, growing the state’s Internally Generated Revenue (IGR) by over 400 per cent by broadening the revenue sources and deploying technology to block leakages.

“It is our hope that your indices also would be updated to reflect that much growth in our domestic revenue. We hope to actually surpass that. Our IGR in our 2025 budget is over 500 billion. And from the indications, we are going to surpass that projection,” he stated.

Mr Mbah said, in the spirit of transparency and accountability, his administration ensured that local governments in the state completely receive all revenues accruing to them in addition to assisting them in the funding of big projects.

RMAFC speaks

Earlier, while speaking during the reception, the leader of the team and Commissioner representing Kwara State at RMAFC, Mohammed Agaka, said they were in Enugu to monitor the disbursements from the Federation Account to Enugu State.

READ ALSO: LP House of Reps member defects to APC in Enugu

“The major aim and objective of this exercise is to assist in identifying any irregularities, misapplication or wrongful application of indices with respect to the indices used in sharing revenue to Enugu State and the local governments from the Federation Account,” Mr Agaka explained.

He added that part of the aim of the visit was “to examine the actual deductions made before the disbursement to the state and the local governments and to identify possible causes of zero application, if any, to the local government councils with the view to resolving it amicably.”

The RMAFC official commended Governor Mbah for his achievements within a short period of his administration.

“Before we came, we thought it was one of those media blitzes that accompany the activities of state governors. But we have gone around.

“I am pleased to note that the smart schools, and the health centres across the 260 wards are very commendable. It clearly demonstrates the fact that it is clearly the government of the people by the leader of the people in the overall interest of the people,” he said.