Kogi State Eyes Increased Revenue: A Look at the 13% Derivation Fund Push

Kogi State aims to tap into its oil-producing status and claim its share of the 13% derivation fund. The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) is playing a crucial role. RMAFC Chairman, Dr. Mohammed Bello Shehu, pledged to support Kogi in securing what’s rightfully theirs. This comes after a visit from Kogi Governor Alhaji Ahmed Usman Ododo, who voiced concerns about the state not yet reaping the rewards of its natural resources.

Getting a piece of that derivation pie involves a few key steps. The RMAFC is forming a committee with the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) and Kogi officials. This group will tackle outstanding issues. Governor Ododo emphasized the need for transparency and proper handling of their requests.

Data, as always, is paramount. A Federal Commissioner from Kebbi State stressed the importance of solid information. The RMAFC echoed this sentiment, emphasizing their power to collect necessary data. Establishing buying centers inside Kogi was advised, with the intention of tracking mineral transactions effectively. It might encourage investors to come forward if information is easily available.

Yet, the story isn’t that simple. Security and infrastructure are essential for attracting investment, as noted by the NUPRC. Someone from Rivers State wisely suggested studying the post-Petroleum Industry Act (PIA) frameworks. The PIA clarifies the state’s rights and obligations. It prepares Kogi and helps them avoid future disputes.

It’s worth noting that this isn’t Kogi’s first attempt to leverage its resources. We’ve seen similar situations with other states. This challenge lies in balancing expectations. Kogi needs to demonstrate tangible production and a clear plan for managing these funds.

Still, the commitment from RMAFC offers a glimmer of hope. It’s a long road, but with transparent processes and a focus on sustainable development, Kogi State might just start seeing those much-needed oil revenues flow. The future may involve solid minerals, if the right steps are taken.

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Keywords: Kogi State, 13 Derivation Fund, RMAFC, Oil Revenue, Nigeria Upstream Petroleum Regulatory Commission, NUPRC, Petroleum Industry Act, PIA