Kogi State Governor, Usman Ododo, has reaffirmed that the state remains an oil-producing region, following the discovery of crude oil in commercial quantities in the Olamaboro Local Government Area.
However, he expressed concern that despite this discovery, Kogi has not been receiving the 13 percent derivation and other benefits extended to other oil-producing states.
Governor Ododo raised this issue during a visit to the Minister of Petroleum Resources (Oil), Heineken Lokpobiri, in Abuja on Thursday, where he sought the ministry’s support in Kogi’s efforts to participate in the northern frontline oil exploration initiative.
He highlighted Kogi’s strategic position as the meeting point between the South and North for the Ajaokuta-Kaduna-Kano (AKK) pipeline, making it an ideal location for oil and gas investments.
In response, Minister Lokpobiri noted that the Federal Government, through the Nigerian Upstream Petroleum Regulatory Commission, is reviewing the matter, as Nigeria aims to boost its crude oil production from 2.5 million barrels per day to 5 million barrels. He assured that the government would collaborate with Kogi State in this effort.
Oil-producing states in Nigeria receive 13 percent derivation as stipulated in Section 162, Subsection 2 of the Nigerian Constitution.
This fund is paid monthly to support oil-producing communities in addressing environmental pollution, degradation, and providing basic amenities like healthcare and potable water.